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A Note on Equivalences in Measuring Returns to Scale in Multi-output-multi-input Technologies

Valentin Zelenyuk

No WP052011, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: In this article we show equivalence between the input oriented and output oriented scale elasticity measures for multi-output, multi-input technologies. We show the necessary and sufficient condition for this equivalence. We also provide a Lagrange multiplier (or shadow price) interpretation of the scale elasticity measure.

New Economics Papers: this item is included in nep-eff
Date: 2011
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