Scale economies and duality

DOI10.1007/BF01229228MaRDI QIDQ1075239zbMATH OpenOpenAlexFDO

Authors Shawna Grosskopf, C. A. Knox Lovell, Rolf Färe

Publication date 1986

Published in Journal of Economics (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/bf01229228

zbMATH Keywords

dual measuresinput and output distance functionsmeasures of scale economiesmultiproduct firm

Mathematics Subject Classification ID

Production theory, theory of the firm (91B38)

Review text

Four measures of scale economies are proposed for the multiproduct firm. Two primal measures are based on the input and output distance functions. Two dual measures are derived from the cost and revenue functions. Conditions are established under which the four measures, or any pair of the four measures, are equal.

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Cites work

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• Choosing among alternative cost function specifications: an application to italian multi-utilities
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• Spatial scale and product mix economies in U.S. banking with simultaneous spillover regimes
• A scale elasticity measure for directional distance function and its dual: theory and DEA estimation
• Distinguishing multiproduct economies of scale from economies of density on a fixed-size transport network
• Aggregation of scale efficiency
• Output learning and duality in joint production programs
• Addition and Efficiency
• Economies of scale in innovations with block-busters
• Degree of scale economies and congestion: a unified DEA approach
• Purchase efficiency in Dutch youth care: locally least squares frontier method applied to municipality data
• Re-examining scale elasticity in DEA

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