2017
DOI: 10.1016/j.ejor.2016.10.030
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Global and local scale characteristics in convex and nonconvex nonparametric technologies: A first empirical exploration

Abstract: The purpose of this contribution is to empirically implement and supplement the proposals made by Podinovski (2004b) to explore the nature of both global and local returns to scale in nonconvex nonparametric technologies. In particular, we both propose a simplified method to compute the global returns to scale and employ some secondary data sets to investigate the frequency of the special case of global sub-constant returns to scale. Furthermore, when determining global returns to scale using both convex and n… Show more

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Cited by 33 publications
(8 citation statements)
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“…It is also worth considering the incorporation of selective strong and weak disposability assumptions in nonconvex production technologies, including free disposal hull of Deprins, Simar, and Tulkens (1984). Developing the notion of RTS for such technologies presents a further conceptual challenge (Cesaroni, Kerstens, & Van de Woestyne, 2017). From the theoretical perspective, questions remain open regarding the dual interpretation of the selective disposability assumptions in the sense of Shephard's lemma (Färe, & Primont, 1995) and, in the context of undesirable outputs, their relationship to the notion of null-jointness (see, e.g., Färe and Grosskopf, 2004).…”
Section: Discussionmentioning
confidence: 99%
“…It is also worth considering the incorporation of selective strong and weak disposability assumptions in nonconvex production technologies, including free disposal hull of Deprins, Simar, and Tulkens (1984). Developing the notion of RTS for such technologies presents a further conceptual challenge (Cesaroni, Kerstens, & Van de Woestyne, 2017). From the theoretical perspective, questions remain open regarding the dual interpretation of the selective disposability assumptions in the sense of Shephard's lemma (Färe, & Primont, 1995) and, in the context of undesirable outputs, their relationship to the notion of null-jointness (see, e.g., Färe and Grosskopf, 2004).…”
Section: Discussionmentioning
confidence: 99%
“…The first point at which this ray intersects the shaded area is corresponding to α CB . In Figure 2, this point is (2,4), and so α CB = 2.…”
Section: Stepmentioning
confidence: 99%
“…In order to calculate the overall and stage efficiency scores based on dissimilar RTS assumptions, some closed form models are applied. Finally, some recent FDH models studies which have been proposed by many scholars can be addressed in literature [39][40][41][42][43].…”
Section: Two-stage Fdh Model In Production Technologiesmentioning
confidence: 99%