This paper presents empirical evidence on scale economies and overcapitalization in Japanese electric utilities. The authors employ the short-run equilibrium model in which the variable cost function treats capital stock as a quasi-fixed factor. They specify the variable cost function as a...

This paper examines the scale and scope economies of higher education institutions in Japan assuming the presence of productive inefficiency. The standard approach to testing the scope economies is to apply the cost function. However, the cost function approach often entails the difficulty of...