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Measuring Scale Efficiency from a Translog Production Function

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  • Subhash Ray

Abstract

In parametric analysis based on a frontier production function, usually the scale elasticity rather than scale efficiency level is reported. In this paper we show how one can use an estimated translog production function to obtain output- and input-oriented measures of scale efficiency at an observed input bundle. We also show how the estimated model can be used to determine the optimal quantity of labor input for an exogenously fixed quantity of capital. Copyright Kluwer Academic Publishers 1999

Suggested Citation

  • Subhash Ray, 1999. "Measuring Scale Efficiency from a Translog Production Function," Journal of Productivity Analysis, Springer, vol. 11(2), pages 183-194, April.
    • Handle: RePEc:kap:jproda:v:11:y:1999:i:2:p:183-194
    DOI: 10.1023/A:1007792201696
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    References listed on IDEAS

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    1. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    Cited by:

    1. Ligia Alba Melo-Becerra & Luis E. Arango & Oscar Iván Ávila-Montealegre & Jhorland Ayala-García & Leonardo Bonilla-Mejía & Jesús Alonso Botero-García & Carolina Crispin-Fory & Manuela Cardona & Daniel, 2023. "Aspectos financieros y fiscales del sistema de salud en Colombia," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, issue 106, pages 1-92, October.
    2. Christian Growitsch & Tooraj Jamasb & Michael Pollitt, 2009. "Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2555-2570.
    3. Jinjin Zhao, 2020. "Productivity change in the privatized water sector in China (1999–2006)," Journal of Productivity Analysis, Springer, vol. 53(2), pages 227-241, April.
    4. Dimitrios Panagiotou & Athanassios Stavrakoudis, 2017. "A Stochastic Production Frontier Estimator of the Degree of Oligopsony Power in the U.S. Cattle Industry," Journal of Industry, Competition and Trade, Springer, vol. 17(1), pages 121-133, March.
    5. K. Kounetas & G. Androulakis & M. Kaisari & G. Manousakis, 2023. "Educational reforms and secondary school's efficiency performance in Greece: a bootstrap DEA and multilevel approach," Operational Research, Springer, vol. 23(1), pages 1-29, March.
    6. Kaoru Tone & Biresh Sahoo, 2006. "Re-examining scale elasticity in DEA," Annals of Operations Research, Springer, vol. 145(1), pages 69-87, July.
    7. Maximilian Koppenberg & Stefan Hirsch, 2022. "Markup estimation: A comparison of contemporary methods at the example of European food retailers," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 108-133, January.
    8. Kostas Kounetas & Kostas Tsekouras, 2007. "Measuring Scale Efficiency Change Using a Translog Distance Function," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 6(1), pages 63-69, April.
    9. Ligia Alba Melo-Becerra & Diego Vásquez-Escobar & María Isabel Alarcón-Obando & Giselle Tatiana Silva-Samudio, 2024. "Empresas Promotoras de Salud en Colombia: Gestión del riesgo en salud, eficiencia técnica y solidez financiera," Borradores de Economia 1272, Banco de la Republica de Colombia.
    10. repec:ags:aaea22:336003 is not listed on IDEAS
    11. Tone, Kaoru & Sahoo, Biresh K., 2005. "Evaluating cost efficiency and returns to scale in the Life Insurance Corporation of India using data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 39(4), pages 261-285, December.
    12. Pokharel, Krishna P & Featherstone, Allen M, 2016. "A Nonparametric Approach to Estimate Multiproduct and Product-specific Scale and Scope Economies for Agricultural Cooperatives," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236182, Agricultural and Applied Economics Association.
    13. Quang Nguyen & Sean Pascoe & Louisa Coglan & Son Nghiem, 2021. "The sensitivity of efficiency scores to input and other choices in stochastic frontier analysis: an empirical investigation," Journal of Productivity Analysis, Springer, vol. 55(1), pages 31-40, February.

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