Nonconvexity in Production and Cost Functions: An Exploratory and Selective Review*

Walter Briec (), Kristiaan Kerstens and Ignace Van de Woestyne ()
Additional contact information
Walter Briec: University of Perpignan, LAMPS
Ignace Van de Woestyne: KU Leuven

Chapter 18 in Handbook of Production Economics, 2022, pp 721-754 from Springer

Abstract: Abstract The purpose of this contribution is to provide an overview of developments in nonconvex production technologies and economic value functions, with special attention to the cost function. Apart from a somewhat selective review of theoretical issues, the emphasis is on whether the assumption of convexity makes a difference in practice. Anticipating our conclusion, we argue that traditional convex empirical results differ on average rather markedly from alternative nonconvex ones. This should make the discipline reconsider its traditional relationship with convexity in both theoretical and applied production analysis.

Keywords: Nonparametric frontier; Convexity; Production; Cost function; Scale; Productivit (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Nonconvexity in Production and Cost Functions: An Exploratory and Selective Review* (2022)
Working Paper: Nonconvexity in Production and Cost Functions: An Exploratory and Selective Review (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-10-3455-8_15

Ordering information: This item can be ordered from
http://www.springer.com/9789811034558

DOI: 10.1007/978-981-10-3455-8_15

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().