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Reminiscences of “Returns to Scale in Electricity Supply”

In: Handbook of Production Economics

Author

Listed:
  • Marc Nerlove

    (University of Maryland)

Abstract

The origins and further development of a very early empirical application of Shephard’s duality theorem is discussed. The investigation of the “Returns to Scale in Electricity Supply” was based on a cost function derived from a Cobb-Douglas production function initially. The function was modified to allow for variable “returns to scale.” Duality between cost and production then showed the modified Cobb-Douglas production function behind the cost function which was initially estimated.

Suggested Citation

  • Marc Nerlove, 2022. "Reminiscences of “Returns to Scale in Electricity Supply”," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 2, pages 49-56, Springer.
    • Handle: RePEc:spr:sprchp:978-981-10-3455-8_2
    DOI: 10.1007/978-981-10-3455-8_2
    as

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