α-Returns to scale and multi-output production technologies

Jean-Philippe Boussemart, Walter Briec, Nicolas Peypoch and Christophe Tavera ()
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Walter Briec: LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations - UPVD - Université de Perpignan Via Domitia
Nicolas Peypoch: LAMPS - LAboratoire de Modélisation Pluridisciplinaire et Simulations - UPVD - Université de Perpignan Via Domitia

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Abstract: This contribution proposes a specification of strictly increasing and decreasing returns to scale in multioutput technologies. Along this line a notion of a-returns to scale is derived from that of homogeneous multi-output technology. For a large class of technologies we establish necessary and sufficient conditions characterizing strictly increasing and strictly decreasing returns to scale to scale. Furthermore, a relationship between input, output and graph distance functions is established. These connections lead naturally to a link between the various Malmquist indexes and the Chavas–Cox productivity index. Finally, we show that these concepts can be implemented in a DEA context using a piecewise homogeneous constant elasticity substitution–transformation model due to [Färe, R., Grosskopf, S., Njinkeu, D., 1988b. On piecewise reference technologies. Management Science 34, 1507–1511].

Keywords: returns to scale; distance function; productivity growth; Malmquist index (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (14)

Published in European Journal of Operational Research, 2009, 197 (1), pp.332-339. ⟨10.1016/j.ejor.2008.05.028⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00418883

DOI: 10.1016/j.ejor.2008.05.028

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