Scale economies and capacity utilization

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“…Following Caves et al (1981), economies of scale (ES) for the variable cost frontier function can be defined as…”

Section: Resultsmentioning

confidence: 99%

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Filippini

Wetzel

2014

Energy Economics

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“…The variable cost function is estimated together with the cost share equation for fish feed using Zellner's SURE. Short-and long-run returns to scale are now ε y-SR = 1/(∂lnVC/∂lny) and ε y-LR = (1 -∂lnVC/∂lnz)/(∂lnVC/∂lny), respectively (Caves, Christensen, and Swanson 1981). The short-run cost elasticity with respect to the agglomeration in-dexes FD and RE is found by taking logarithmic partial derivatives; i.e., ε FD = ∂lnVC/∂lnFD and ε RE = ∂lnVC/∂lnRE.…”

Section: Econometric Model Specificationsmentioning

confidence: 99%

Industrial Agglomeration and Production Costs in Norwegian Salmon Aquaculture

Tveterås¹

2002

Marine Resource Economics

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“…Bradley and Colvin (1999) focused on mail sorting and estimated a multiproduct total cost function for 250 US sorting centers between 1988 and 1996. They found evidence for substantial 5 For example, see for example Caves et al (1981), Caves et al (1984), Cabini and Filippini (2003) or (transport sector), Koshal and Koshal (1999) or Sav (2004) (higher education), Fu and Heffernan (2008) (banking sector), Preyra and Pink (2006), Filippini (2001) or Farsi et al (2008b) (health sector), Nerlove (1963), Filippini (1996), Fraquelli et al (2004), Farsi et al (2007) or Farsi et al (2008a) (electricity distribution), Filippini and Luchsinger (2007) (hydropower). 6 See also NERA (2004) for an overview on the relevant empirical literature.…”

Section: Previous Studies On Economies Of Scale and Scopementioning

confidence: 99%

Economies of scale and scope and opening hours in post offices and agencies

Filippini¹,

Koller²,

Trinkner³

2010

Heightening Competition in the Postal and Delivery Sector

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The purpose of this study is to analyze the cost structure of Swiss Post's postal outlets. In particular, the idea is to assess economies of scale and scope in post offices and franchised postal agencies.Information on their optimal size and production structure is of importance from the policy-makers' point of view because this hypothetical situation may be a basis for calculation of reimbursements when providing the universal service. Two important novelties are introduced in this study. First, the latent class model accounts for postal outlets with different underlying production technologies, caused by unobserved factors. Second, the cost model includes standby time as an indicator of public service because regulated accessibility and negotiated opening hours that enhance public service frequently lead to opening hours that exceed the time necessary to operate the demand. Overall, this analysis confirms the existence of increasing unexploited economies of scale and scope with falling outputs in the Swiss Post office network. Furthermore, the results for the latent class model point to the existence of unobserved heterogeneity in the industry.

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Scale economies and capacity utilization

Cited by 30 publications

References 6 publications

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

The impact of ownership unbundling on cost efficiency: Empirical evidence from the New Zealand electricity distribution sector

Industrial Agglomeration and Production Costs in Norwegian Salmon Aquaculture

Economies of scale and scope and opening hours in post offices and agencies

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