Estimating scale economies in non-convex production models
Kristiaan Kerstens () and
Ignace Van de Woestyne
Additional contact information
Ignace Van de Woestyne: KU Leuven
Journal of the Operational Research Society, 2017, vol. 68, issue 11, 1442-1451
Abstract The literature on nonparametric frontier technologies lacks a method for the measurement of scale economies in non-convex settings. This paper proposes a general procedure which is based on the minimization of the ray average cost and requires the solution of a single programming problem. Our approach allows for multiple optima to introduce the case of global sub-constant scale economies, and it also permits the estimation of scale economies at a local level. The empirical application investigates the role of replicability and the relationship between global and local indicators. It also points out the managerial implications for companies operating in the Italian public transit industry.
Keywords: Free Disposal Hull; returns to scale; scale economies (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1057/s41274-016-0162-7 Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Estimating scale economies in non-convex production models (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:68:y:2017:i:11:d:10.1057_s41274-016-0162-7
Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274
Access Statistics for this article
Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook
More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla ().