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Scale and the Efficiency Production Function

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  • Millan, Joaquin

Abstract

This paper introduces the ‘efficiency production function’ and addresses the question of what kind of efficiency effects can be independently isolated and identified from scale effects in parametric production models. Sato introduced the concept of holotheticity in order to analyze the family of production functions under which the effect of technical progress is completely transformed to apparent scale effects. In this paper, the concept of holotheticity is extended to cover the analysis of technical efficiency. Some by-results concerning the orientation of efficiency are presented.

Suggested Citation

  • Millan, Joaquin, 2004. "Scale and the Efficiency Production Function," Efficiency Series Papers 2004/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2004/02
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    References listed on IDEAS

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