International Journal of Business and Economics Volume 6, No. 1 April​, 2007

Measuring Scale Efficiency Change Using a Translog Distance Function

Kostas Kounetas

Department of Economics, University of Patras, Greece

Kostas Tsekouras

Department of Economics, University of Patras, Greece

Abstract

We derive a measure of scale efficiency change in the case of a translog output-oriented, multi-input, multi-output distance function without imposing restrictions in previous analogous works by Ray (1998, 1999) and Balk (2001). This may be particularly useful in productivity analysis based on the Malmquist productivity index.

Keywords：most productive scale size (MPSS), scale efficiency change, translog function.

JEL Classifications：B41, D20, D21.

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