[alpha]-Returns to scale and multi-output production technologies
This contribution proposes a specification of strictly increasing and decreasing returns to scale in multi-output technologies. Along this line a notion of [alpha]-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].
Year of publication: |
2009
|
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Authors: | Boussemart, Jean-Philippe ; Briec, Walter ; Peypoch, Nicolas ; Tavéra, Christophe |
Published in: |
European Journal of Operational Research. - Elsevier, ISSN 0377-2217. - Vol. 197.2009, 1, p. 332-339
|
Publisher: |
Elsevier |
Keywords: | D24 Returns to scale Distance function Productivity growth Malmquist index |
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