$\Lambda$-Returns to Scale and Individual Minimum Extrapolation Principle
Jean-Philippe Boussemart,
Walter Briec,
Raluca Parvulescu and
Paola Ravelojaona
Papers from arXiv.org
Abstract:
This paper proposes to estimate the returns-to-scale of production sets by considering the individual return of each observed firm through the notion of $\Lambda$-returns to scale assumption. Along this line, the global technology is then constructed as the intersection of all the individual technologies. Hence, an axiomatic foundation is proposed to present the notion of $\Lambda$-returns to scale. This new characterization of the returns-to-scale encompasses the definition of $\alpha$-returns to scale, as a special case as well as the standard non-increasing and non-decreasing returns-to-scale models. A non-parametric procedure based upon the goodness of fit approach is proposed to assess these individual returns-to-scale. To illustrate this notion of $\Lambda$-returns to scale assumption, an empirical illustration is provided based upon a dataset involving 63 industries constituting the whole American economy over the period 1987-2018.
Date: 2022-12, Revised 2023-12
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
http://arxiv.org/pdf/2212.04724 Latest version (application/pdf)
Related works:
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:arx:papers:2212.04724
Access Statistics for this paper
More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().