ON THE CHOICE OF FUNCTIONAL FORMS IN THE MEASUREMENT OF SCALE AND SCOPE ECONOMIES: GENERALIZED BOX-COX AND COMPOSITE COST FUNCTIONS

Ebenezer Ogunyinka and Allen Featherstone

No 35057, 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: This paper estimates and compares generalized Box-Cox and composite cost functions to identify scale and scope economies. The robustness of the outcomes to different functional specifications was examined. Increasing returns to scale was common for product-specific and the overall measures. Generalized Leontief and composite forms yielded more robust elasticity, scale and scope measures. The generalized Box-Cox model was selected as the appropriate functional form as all the special cases were rejected.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Pages: 22
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saeatm:35057

DOI: 10.22004/ag.econ.35057

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