Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach.

In this paper, the authors develop measures of plant capacity, plant capacity utilization, and technical change based on observed best practice performance in a given industry. These measures are calculated as solutions to linear programming problems that are closely related to those used to calculate Farrell-type efficiency measures. An example using electric utility data is included. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.