Econometric estimates of scale economies in Canadian manufacturing

Political Risk and Irreversible Investment

“…Paquet and Robidoux (2001) provide evidence that there exists constant returns to scale and perfect competition for the Canadian economy as a whole when variable capacity utilization is taken into account. By contrast, both Morrison (1992Morrison ( ,1994 and Robidoux and Lester (1992) find some evidence for increasing returns to scale at the industry level for Canada between 1960 and 1982. However, their evidence is also consistent with constant returns to scale.…”

The relationship between concentration and prices and concentration and costs

“…Fuss a n d -~u~t a (1981) for 91 industries in the late 1960s obtain a weighted average scale elasticity of 1.06, as do Robidoux and Lester (1988) for a sample of 147 industries in 1979." For increasing-returns industries only, Robidoux and Lester report a weighted average scale elasticity of 1.08.…”

Malmquist productivity index of the manufacturing sector in Canada from 1994 to 2002, with a focus on the wood manufacturing sector

“…Both parametric (Robidoux & Lester, 1992;Bennaroch, 1997) and non-parametric methods (Denny et al, 1981;Fluet & Lefebvre, 1987) have been used in previous productivity studies of the Canadian manufacturing sector. Parametric methods assume an explicit functional form relating inputs and outputs.…”

“…Non-parametric methods do not require any functional form to relate inputs and outputs, which increases their practicality (Coelli et al, 1998). Robidoux and Lester (1992) used a translog cost function to identify the production structure of the manufacturing sector in Canada and found that the majority of the industries showed increasing returnsto-scale (IRS) and constant returns-to-scale (CRS). Benarroch (1997) also showed that there were increasing returns-to-scale in the Canadian manufacturing industries.…”