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Mixed partial elasticities in constant returns-to-scale production technologies

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Atici, Kazim Baris and Podinovski, Victor V. (2012) Mixed partial elasticities in constant returns-to-scale production technologies. European Journal of Operational Research, Vol.220 (No.1). pp. 262-269. doi:10.1016/j.ejor.2012.01.034

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Official URL: http://dx.doi.org/10.1016/j.ejor.2012.01.034

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Abstract

Recently, Podinovski and Førsund (2010) developed a linear programming approach to the analysis and calculation of a class of mixed partial elasticity measures in variable returns-to-scale (VRS) production technologies. In the current paper, we extend their approach to the constant returns-to-scale (CRS) technologies and formulate linear programs required for the computation of elasticity measures. Among other results obtained in this paper, we prove a new result, valid in both VRS and CRS technologies, that allows us to identify the reason why the corresponding elasticity measure is undefined at the unit. This removes the need for a preliminary sorting of the units into those units where the elasticity measure applies and those where it does not. © 2012 Elsevier B.V. All rights reserved.

Item Type: Journal Article
Divisions: Faculty of Social Sciences > Warwick Business School > Operational Research & Management Sciences
Faculty of Social Sciences > Warwick Business School
Journal or Publication Title: European Journal of Operational Research
Publisher: Elsevier Science BV
ISSN: 0377-2217
Official Date: 1 July 2012
Dates:
DateEvent
1 July 2012Published
Volume: Vol.220
Number: No.1
Page Range: pp. 262-269
DOI: 10.1016/j.ejor.2012.01.034
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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