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Cost-Optimal Scale of Child Care Institutions

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  • Vidar Ringstad
  • Knut Loyland

Abstract

In this paper we explore the scale properties in the operation of child care institutions. The main issue is whether or not there exists a technically optimal scale of operation. Our results, based on a homothetic production function model and data from a sample of Norwegian child care institutions, suggest that a technically optimal scale does exist. This confirms some of the results recently obtained for US child care institutions. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Vidar Ringstad & Knut Loyland, 1998. "Cost-Optimal Scale of Child Care Institutions," Journal of Productivity Analysis, Springer, vol. 10(3), pages 305-311, November.
    • Handle: RePEc:kap:jproda:v:10:y:1998:i:3:p:305-311
    DOI: 10.1023/A:1018671523472
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    References listed on IDEAS

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    1. Anne Preston, 1993. "Efficiency, quality, and social externalities in the provision of day care: Comparisons of nonprofit and for-profit firms," Journal of Productivity Analysis, Springer, vol. 4(1), pages 165-182, June.
    2. Swati Mukerjee & Ann Witte, 1993. "Provision of child care: Cost functions for profit-making and not-for-profit day care centers," Journal of Productivity Analysis, Springer, vol. 4(1), pages 145-163, June.
    3. Ringstad, Vidar, 1974. "Some Empirical Evidence on the Decreasing Scale Elasticity," Econometrica, Econometric Society, vol. 42(1), pages 87-101, January.
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    1. Loyland, Knut & Ringstad, Vidar, 2000. "Gains and structural effects of exploiting scale-economies in Norwegian dairy production," Agricultural Economics, Blackwell, vol. 24(2), pages 149-166, January.
    2. Bönisch Peter & Tagge Sven, 2012. "The Optimal Size of German Child Care Centers and the Impact of Regulation: Estimating the Cost Function of a Regulated Multi-Product Firm," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(5), pages 545-566, October.

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    Keywords

    Economies of scale; Child care;

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