α-Returns to scale and multi-output production technologies

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2009

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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.ejor.2008.05.028

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Jean-Philippe Boussemart et al., « α-Returns to scale and multi-output production technologies », HAL-SHS : économie et finance, ID : 10.1016/j.ejor.2008.05.028


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This contribution proposes a specification of strictly increasing and decreasing returns to scale in multioutput technologies. Along this line a notion of a-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].

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