Scale Efficiency: Equivalence of Primal and Dual Measures

Valentin Zelenyuk

No WP092011, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: In this paper we address an issue of equivalence of primal and dual measures of scale efficiency in general production theory framework. We find that particular types of homotheticity, which we refer to as scale homotheticity, provide necessary and sufficient condition for such equivalence. Specifically, we show that the input scale homotheticity of technology is necessary and sufficient condition for equivalence of primal and dual scale efficiency measures in the input/cost oriented case. Similarly, the output scale homotheticity of technology is necessary and sufficient condition for equivalence of primal and dual scale efficiency measures in the output/revenue oriented case. We also discuss the case when technology is both input scale homothetic and output scale homothetic, as well as indicate about some relationships of scale homotheticity with the homotheticity notions that have already been used in economic theory.

Date: 2011
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://economics.uq.edu.au/files/5193/WP092011.pdf (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:qld:uqcepa:75

Access Statistics for this paper

More papers in CEPA Working Papers Series from University of Queensland, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by SOE IT ().