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Is there a prison size dilemma? An empirical analysis of output-specific economies of scale

Author

Listed:
  • Veerle Hennebel

    (KU Leuven)

  • Richard Simper

    (University of Nottingham)

  • Marijn Verschelde

    (IÉSEG School of Management, LEM (UMR-CNRS 9221))

Abstract

We advocate a nonparametric multi-output framework to estimate output-specific economies of scale and we apply this model to male prisons in England and Wales over the sample period 2009-2012. To estimate output-specific returns to scale in prisons, we consider not only the cost-per-place, but also qualitative outputs such as purposeful out-of-cell activity and successful reintegration. Furthermore, we introduce environmental heterogeneity using the characteristics of the prison(ers). England and Wales offers a unique example to study economies of scale in prisons as the UK has started to build new super-size prisons in order to replace the most outdated prisons.

Suggested Citation

  • Veerle Hennebel & Richard Simper & Marijn Verschelde, 2016. "Is there a prison size dilemma? An empirical analysis of output-specific economies of scale," Working Papers 2016-EQM-09, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e201609
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    Cited by:

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    2. Antonio Peyrache & Maria C. A. Silva, 2023. "Efficiency decomposition for multi-level multi-components production technologies," Journal of Productivity Analysis, Springer, vol. 60(3), pages 273-294, December.

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    Keywords

    data envelopment analysis; economies of scale; multi-output production; UK penology;
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