ON THE CHOICE OF FUNCTIONAL FORMS IN THE MEASUREMENT OF SCALE AND SCOPE ECONOMIES: GENERALIZED BOX-COX AND COMPOSITE COST FUNCTIONS

This paper estimates and compares generalized Box-Cox and composite cost functions to identify scale and scope economies. The robustness of the outcomes to different functional specifications was examined. Increasing returns to scale was common for product-specific and the overall measures. Generalized Leontief and composite forms yielded more robust elasticity, scale and scope measures. The generalized Box-Cox model was selected as the appropriate functional form as all the special cases were rejected.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/35057
PURL Identifier:
http://purl.umn.edu/35057
Total Pages:
22
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)