scholarly journals Variable and Constant Returns-to-Scale Production Technologies with Component Processes

2021 ◽  
Author(s):  
Victor V. Podinovski
Keyword(s):  
Returns To Scale ◽  
Efficiency Analysis ◽  
Scale Production ◽  
Worst Case ◽  
Production Processes ◽  
Component Processes ◽  
Production Technologies ◽  
Constant Returns To Scale ◽  
Shared Inputs ◽  
Inputs And Outputs

Efficiency Analysis for Multicomponent Production Processes Conventional models concerned with efficiency analysis of organizations typically consider a single production process, or technology, in which all inputs are used in the production of all outputs. This approach does not account well for the situations in which the organizations are involved in several component production processes whose inputs and outputs may be shared by different processes. The main difficulty in modeling such technologies is the fact that we often do not know the exact allocation of the shared inputs and outputs to individual processes. In “Variable and Constant Returns-to-Scale Production Technologies with Component Processes,” V. V. Podinovski shows how this problem can be overcome by the consideration of the worst-case scenario for the allocation of the shared inputs and outputs to different components of the technology. This approach leads to the development of multicomponent variants of two well-established nonparametric models. An application involving universities in England demonstrates the usefulness and improved discriminating power of the new models compared with their conventional analogues.

Production with Constant Returns

2011 ◽  
Author(s):  
Yves Balasko
Keyword(s):  
Returns To Scale ◽  
Profit Maximization ◽  
Maximization Problem ◽  
Scale Production ◽  
Constant Returns To Scale ◽  
Activity Vector ◽  
Inputs And Outputs

This chapter examines the net supply correspondence of a constant returns to scale firms under suitable convexity and smoothness assumptions. These assumptions are comparable to those used in the previous chapters for consumers and production with decreasing returns to scale. The chapter starts by formulating constant returns to scale production by way of production sets with arbitrary numbers of inputs and outputs. It then addresses the profit maximization problem of a constant returns to scale firm. That problem does not always have a solution. More accurately, if some feasible activity yields a strictly positive profit at some given prices, then it suffices to consider an arbitrarily large multiple of that activity vector to get a feasible activity that yields an arbitrarily large profit at the same prices. The firm can then make an arbitrarily large profit.

Replication and Returns to Scale in Production

2014 ◽  
Vol 14 (1) ◽  
pp. 127-148 ◽  
Author(s):  
Christian Jensen
Keyword(s):  
Public Goods ◽  
Production Process ◽  
Production Function ◽  
Stationary Point ◽  
Returns To Scale ◽  
Profit Maximization ◽  
Scale Production ◽  
Production Processes ◽  
Integer Problem ◽  
Constant Returns To Scale

AbstractReplication alone does not yield a smooth constant-returns-to-scale production function as those usually assumed in the literature. However, such a function arises endogenously with replication, driven by profit-maximization, if the efficiency of the underlying production process varies with the intensity it is operated at, and reaches a maximum at a stationary point. The result applies when the number of production processes must be discrete, thus overcoming the so-called integer problem. When inputs are non-rival, public goods or generated by externalities, replication can lead to increasing or decreasing returns to scale.

scholarly journals PARETO OPTIMALITY OF THE GOLDEN RULE EQUILIBRIUM IN AN OVERLAPPING GENERATIONS MODEL WITH PRODUCTION AND TRANSFERS

2015 ◽  
Vol 19 (8) ◽  
pp. 1780-1799 ◽  
Author(s):  
Jean-François Mertens ◽  
Anna Rubinchik
Keyword(s):  
Overlapping Generations ◽  
Returns To Scale ◽  
Golden Rule ◽  
Life Time ◽  
Equilibrium Price ◽  
Scale Production ◽  
Present Value ◽  
Overlapping Generations Model ◽  
Aggregate Consumption ◽  
Constant Returns To Scale

The main result is that the golden rule equilibrium (GRE) is Pareto optimal (in the classical sense) in an overlapping generations (OG) model with constant-returns-to-scale production, transfers, arbitrary life-time productivity and homogeneous instantaneous felicity. In addition, we extend Cass and Yaari's equivalence between efficiency (aggregate consumption dominance) and present value dominance (with evaluation made using a candidate equilibrium price path).

scholarly journals Efficiency Analysis with non parametric method: Illustration of the Tunisian ports

2018 ◽  
Vol 9 (1) ◽  
pp. 51-58
Author(s):  
Arbia Hlali
Keyword(s):  
Panel Data ◽  
Technical Efficiency ◽  
Parametric Method ◽  
Returns To Scale ◽  
Efficiency Analysis ◽  
Data Set ◽  
Low Levels ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale ◽  
Non Parametric

AbstractThis paper applies a non-parametric method to provide level technical efficiency for 7 Tunisian ports during 18 years (1998-2015). These ports represent different data set. The use of the model of variable returns to scale (VRS) has led to interesting results. The results show that the most ports are characterized by low levels of technical efficiency, with the exception port of Rades. In addition, the result shows the variation of variable returns to scale and constant returns to scale of technical port’s efficiency. Furthermore, we concluded that the panel data improves the efficiency estimates.

Linearized, Optimally Configured Urban System Models: A Profit-Maximizing Formulation

1988 ◽  
Vol 20 (3) ◽  
pp. 369-390 ◽  
Author(s):  
J E Moore ◽  
L L Wiggins
Keyword(s):  
Land Use ◽  
Linear Programming ◽  
Returns To Scale ◽  
Urban System ◽  
Export Prices ◽  
Land Use Model ◽  
Production Technologies ◽  
Profit Maximizing ◽  
Constant Returns To Scale ◽  
First Time

A general equilibrium, linear programming land-use model formulated in the heritage of Edwin Mills is extended to include a profit-maximizing objective function. This analog of the existing, cost-minimizing formulations in the literature is driven by exogenous export prices rather than by minimum-export requirements. It is demonstrated that the absence of minimum-export constraints results in an optimum corresponding to the exclusive export of the most profitable good. In addition, the outputs of the model are shown to be arbitrarily dependent on assumptions about zone geometry if export prices are high. A static, spatially disaggregate version of the model is specified by means of hexagonal land-use zones. Perfect market conditions are assumed and spatial markets identified. Production technologies are of the fixed-coefficient type with constant returns to scale. Import flows are treated explicitly for the first time in a model of this class, and their inclusion is shown to have a significant impact on optimal land-use configurations.

scholarly journals A Fuzzy Approach to Support Evaluation of Fuzzy Cross Efficiency

Symmetry ◽  
2021 ◽  
Vol 13 (5) ◽  
pp. 882
Author(s):  
Shun-Cheng Wu ◽  
Tim Lu ◽  
Shiang-Tai Liu
Keyword(s):  
Decision Making ◽  
Evaluation Method ◽  
Optimization Problems ◽  
Evaluation Model ◽  
Returns To Scale ◽  
Efficiency Evaluation ◽  
Dea Models ◽  
Production Technologies ◽  
Constant Returns To Scale ◽  
Variable Returns To Scale

Cross-efficiency evaluation effectively distinguishes a set of decision-making units (DMUs) via self- and peer-evaluations. In constant returns to scale, this evaluation technique is usually applied for data envelopment analysis (DEA) models because negative efficiencies will not occur in this case. For situations of variable returns to scale, the negative cross-efficiencies may occur in this evaluation method. In the real world, the observations could be uncertain and difficult to measure precisely. The existing fuzzy cross-evaluation methods are restricted to production technologies with constant returns to scale. Generally, symmetry is a fundamental characteristic of binary relations used when modeling optimization problems. Additionally, the notion of symmetry appeared in many studies about uncertain theories employed in DEA problems, and this approach can be considered an engineering tool for supporting decision-making. This paper proposes a fuzzy cross-efficiency evaluation model with fuzzy observations under variable returns to scale. Since all possible weights of all DMUs are considered, a choice of weights is not required. Most importantly, negative cross-efficiencies are not produced. An example shows that this paper’s fuzzy cross-efficiency evaluation method has discriminative power in ranking the DMUs when observations are fuzzy numbers.

scholarly journals AN ENDOGENOUSLY DERIVED AK MODEL OF ECONOMIC GROWTH

2018 ◽  
Vol 22 (8) ◽  
pp. 2182-2200
Author(s):  
Christian Jensen
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Returns To Scale ◽  
Profit Maximization ◽  
Perfect Competition ◽  
Production Processes ◽  
Input Use ◽  
Integer Problem ◽  
Ak Model ◽  
Constant Returns To Scale

When the returns to scale of a production process vary with the intensity it is operated at, an AK model with constant returns to scale in production arises endogenously due to replication driven by profit maximization. If replication occurs at the efficiency-maximizing scale, as with perfect competition, the result applies also when the number of production processes must be discrete, thus, overcoming the so-called integer problem. When competition is imperfect, there is only convergence toward the AK model for large enough input use, so an economy is more prone to stalling in a steady state without growth, the smaller and less competitive it is.

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