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Plant Capacity Notions: Existence Results at Firm and Industry Levels

Author

Listed:
  • Kristiaan Kerstens

    (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France, Tel: +33 320545892 (switchboard), Fax: +33 320574855)

  • Jafar Sadeghi

    (Ivey Business School, Western University, London, Ontario, Canada)

Abstract

This contribution innovates by investigating the question as to the existence of solutions for the key plant capacity concepts using general nonparametric technologies. Focusing on both short-run and long-run output-oriented, attainable output-oriented, and input-oriented plant capacity notions, we first investigate the existence of solutions at the firm level. Then, for this same range of six plant capacity concepts, we also explore the more difficult question as to the existence of solutions at the industry level.

Suggested Citation

  • Kristiaan Kerstens & Jafar Sadeghi, 2021. "Plant Capacity Notions: Existence Results at Firm and Industry Levels," Working Papers 2021-EQM-04, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e202106
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    References listed on IDEAS

    as
    1. Giovanni Cesaroni & Kristiaan Kerstens & Ignace Van de Woestyne, 2017. "A New Input-Oriented Plant Capacity Notion: Definition and Empirical Comparison," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 720-739, October.
    2. Kerstens, Kristiaan & Shen, Zhiyang, 2021. "Using COVID-19 mortality to select among hospital plant capacity models: An exploratory empirical application to Hubei province," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    3. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2019. "Short- and long-run plant capacity notions: Definitions and comparison," European Journal of Operational Research, Elsevier, vol. 275(1), pages 387-397.
    4. Fare, Rolf & Grosskopf, Shawna & Kokkelenberg, Edward C, 1989. "Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 30(3), pages 655-666, August.
    5. Roxani Karagiannis, 2015. "A system-of-equations two-stage DEA approach for explaining capacity utilization and technical efficiency," Annals of Operations Research, Springer, vol. 227(1), pages 25-43, April.
    6. Färe, Rolf & Karagiannis, Giannis, 2017. "The denominator rule for share-weighting aggregation," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1175-1180.
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    Cited by:

    1. Kristiaan KERSTENS & Xiaoqing CHEN, 2022. "Evaluating Horizontal Mergers in Swedish District Courts Using Plant Capacity Concepts: With a Focus on Nonconvexity," Working Papers 2022-EQM-02, IESEG School of Management.

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    More about this item

    Keywords

    Data Envelopment Analysis; Nonparametric Technology; Capacity utilization;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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