IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v19y1973i4p363-384.html
   My bibliography  Save this article

Returns To Scale In Retail Trade

Author

Listed:
  • Gur Ofer

Abstract

This paper attempts to estimate genuine scale effects in retail trade from a cross section of retail stores in Israel. This is done by estimating a simple production function for several retail branches and employing the faithful old direct Cobb‐Douglas structure with value added as output and labor and capital inputs. And indeed despite the well‐known peculiarities of the retail industry, a cross section estimation produces “normal” production‐function estimates with reasonable input elasticities. The estimates also identify marked increasing returns‐to‐scale parameters, higher in food and lower in branches less affected by consumer participation and geographical dispersion. These increasing returns may explain a good part of the increase in sales per unit of inputs observed in time series.

Suggested Citation

  • Gur Ofer, 1973. "Returns To Scale In Retail Trade," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(4), pages 363-384, December.
    • Handle: RePEc:bla:revinw:v:19:y:1973:i:4:p:363-384
    DOI: 10.1111/j.1475-4991.1973.tb00897.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4991.1973.tb00897.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4991.1973.tb00897.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Florin Maican & Matilda Orth, 2017. "Productivity Dynamics and the Role of ‘Big-Box’ Entrants in Retailing," Journal of Industrial Economics, Wiley Blackwell, vol. 65(2), pages 397-438, June.
    2. Keh, Hean Tat & Chu, Singfat, 2003. "Retail productivity and scale economies at the firm level: a DEA approach," Omega, Elsevier, vol. 31(2), pages 75-82, April.
    3. Martin Neil Baily, 1993. "Competition, Regulation, and Efficiency in Service Industries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 24(2 Microec), pages 71-159.
    4. Patalinghug Jason C., 2019. "Estimation of a Production Function for Philippine Retail Stores," Economics, Sciendo, vol. 7(1), pages 69-79, June.
    5. Maican, Florin & Orth, Matilda, 2015. "A dynamic analysis of entry regulations and productivity in retail trade," International Journal of Industrial Organization, Elsevier, vol. 40(C), pages 67-80.
    6. Roger Betancourt & Monica Cortiñas & Margarita Elorz & Jose Mugica, 2007. "The demand for and the supply of distribution services: A basis for the analysis of customer satisfaction in retailing," Quantitative Marketing and Economics (QME), Springer, vol. 5(3), pages 293-312, September.
    7. Satya P. Das & Anuradha Saha, 2015. "Growth of business services: A supply‐side hypothesis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 83-109, February.
    8. James H. Anderson, 2002. "The Distribution Sector and the Development Process: are there Patterns? Yes," Economic Inquiry, Western Economic Association International, vol. 40(2), pages 166-176, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:19:y:1973:i:4:p:363-384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.