Bundling or Grouping Pavement and Bridge Projects: Analysis and Strategies

2017 ◽  
Vol 2613 (1) ◽  
pp. 37-44 ◽  
Author(s):  
Yingge Xiong ◽  
Jon D. Fricker ◽  
Samuel Labi
Keyword(s):  
Economies Of Scale ◽  
Bridge Deck ◽  
Unit Cost ◽  
Scale Economies ◽  
State Agencies ◽  
Cost Models ◽  
Adequate Data ◽  
Project Contract

Project grouping is a concept that aims to reduce the overall costs of projects by combining smaller-scale pavement, bridge, and other projects under a single contract. To investigate the potential for state agencies to realize the benefits of project grouping, this study looked at economies of scale and economies of competition. The study documented the decline in unit cost as the size of the project increased for numerous bridge and pavement work types. Scale economies are true for single- and multiple-project contracts. Larger contracts lend themselves to economies of scale but can discourage all but the largest firms from bidding on the work. As a result, there is a range of contract sizes (measured in this study in terms of bridge deck area or lane mile of pavement) within which the contract is neither too small nor too big. From an examination of the work types for which adequate data were available, the size of combined projects that led to the best balance between economies of scale and economies of competition were ( a) about 20,000 ft2 of deck area for bridge projects and ( b) 10 to 20 lane miles for pavement projects. The single-project and multiple-project unit cost models developed in this project can be used to screen projects for which engineers’ estimates are available and identify single projects that should be considered for grouping into a multiple-project contract.

Cost management for concrete batch plant using stochastic mathematical models

2006 ◽  
Vol 33 (8) ◽  
pp. 1065-1074 ◽  
Author(s):  
Tarek M Zayed ◽  
Ibrahim A Nosair
Keyword(s):  
Mathematical Models ◽  
Production Efficiency ◽  
Cost Management ◽  
Unit Cost ◽  
Expected Value ◽  
Cost Models ◽  
Productivity Cost ◽  
Batch Plant ◽  
Factor Share ◽  
Construction Operation

Assessing productivity, cost, and delays are essential to manage any construction operation, particularly the concrete batch plant (CBP) operation. This paper focuses on assessing the above-mentioned items for the CBP using stochastic mathematical models. It aims at (i) identifying the potential sources of delay in the CBP operation; (ii) assessing their influence on production, efficiency, time, and cost; and (iii) determining each factor share in inflating the CBP concrete unit expense. Stochastic mathematical models were designed to accomplish the aforementioned objectives. Data were collected from five CBP sites in Indiana, USA, to implement and verify the designed models. Results show that delays due to management conditions have the highest probability of occurrence (0.43), expected value of delay percent (62.54% out of total delays), and relative delay percent. The expected value of efficiency for all plants is 86.53%; however, the average total expense is US$15.56/m3 (all currency are in US$). In addition, the expected value of effective expenses (EE) is $18.03/m3, resulting in extra expenses (XE) of $2.47/m3. This research is relevant to both industry practitioners and researchers. It develops models to determine the effect of delays on concrete unit cost. They are also beneficial to the CBP management.Key words: concrete batch plant, delays, management conditions, cost models, cost management, stochastic mathematical models.

Marginal assessment of the cost and benefits of aphasia treatment: Evidence from community-based telerehabilitation treatment for aphasia

2021 ◽  
pp. 1357633X2098277
Author(s):  
Molly Jacobs ◽  
Patrick M Briley ◽  
Heather Harris Wright ◽  
Charles Ellis
Keyword(s):  
Cost Effectiveness ◽  
Economies Of Scale ◽  
Reference Group ◽  
Unit Cost ◽  
Community Based ◽  
Face To Face ◽  
Conduction Aphasia ◽  
Aphasia Treatment ◽  
The Cost ◽  
The Relationship

Introduction Few studies have reported information related to the cost-effectiveness of traditional face-to-face treatments for aphasia. The emergence and demand for telepractice approaches to aphasia treatment has resulted in an urgent need to understand the costs and cost-benefits of this approach. Methods Eighteen stroke survivors with aphasia completed community-based aphasia telerehabilitation treatment, utilizing the Language-Oriented Treatment (LOT) delivered via Webex videoconferencing program. Marginal benefits to treatment were calculated as the change in Western Aphasia Battery-Revised (WAB-R) score pre- and post-treatment and marginal cost of treatment was calculated as the relationship between change in WAB-R aphasia quotient (AQ) and the average cost per treatment. Controlling for demographic variables, Bayesian estimation evaluated the primary contributors to WAB-R change and assessed cost-effectiveness of treatment by aphasia type. Results Thirteen out of 18 participants experienced significant improvement in WAB-R AQ following telerehabilitation delivered therapy. Compared to anomic aphasia (reference group), those with conduction aphasia had relatively similar levels of improvement whereas those with Broca’s aphasia had smaller improvement. Those with global aphasia had the largest improvement. Each one-point of improvement cost between US$89 and US$864 for those who improved (mean = US$200) depending on aphasia type/severity. Discussion Individuals with severe aphasia may have the greatest gains per unit cost from treatment. Both improvement magnitude and the cost per unit of improvement were driven by aphasia type, severity and race. Economies of scale to aphasia treatment–cost may be minimized by treating a variety of types of aphasia at various levels of severity.

scholarly journals Drivers of municipal solid waste management cost based on cost models inherent to sorted and unsorted waste

2021 ◽  
Author(s):  
Giacomo Di Foggia ◽  
Massimo Beccarello
Keyword(s):  
Waste Management ◽  
Municipal Solid Waste ◽  
Solid Waste ◽  
Economies Of Scale ◽  
Solid Waste Management ◽  
Cost Minimization ◽  
Critical Role ◽  
Municipal Solid Waste Management ◽  
Cost Models

After having divided waste management cost in its cost items, we focus on how well-known exogenous and endogenous drivers impact on such cost items. To this end, we collected empirical data of 6,616 Italian municipalities for a two-year period. We develop four regression-based models to analyze the data according to cost items. Models are also reiterated using different data normalization: cost per ton of waste or waste per capita. Besides exogenous determiners of cost, such as altitude, population density, and coastal zone, results refer to both unsorted and sorted waste management cost items. In this respect economies of scale are confirmed along with the critical role of adequate waste facilities that play a remarkable role in cost minimization. Policymakers and regulators may benefit from such results when it comes to define allowed revenues and design the scope of municipal solid waste regulation.

“Small Is Beautiful”

2016 ◽  
pp. 113-134 ◽  
Author(s):  
Juraj Nemec ◽  
Lenka Matejova ◽  
Jana Soukopová
Keyword(s):  
Czech Republic ◽  
Public Services ◽  
Economies Of Scale ◽  
Scale Economies ◽  
Optimal Size ◽  
The Czech Republic ◽  
Municipal Expenditures

This chapter discusses the problem of territorial fragmentation and summarizes the arguments for and against a solution in the form of territorial consolidation regarding the example of the Czech Republic. The main reason for the consolidation of municipalities are the benefits derived from the theory of the economies of scale. Linked to this is also the question of how to determine the optimal size of a municipality in order to make the best use of the principles of scale economies. The second part of this chapter shows an analysis of Czech municipal expenditures on selected public services that municipalities provide, and based on the results, determine the optimal size of the municipality for the analyzed services. Data from the Czech Republic do not clearly support the economic arguments for territorial consolidation

Business Model Innovation in the Digital Economy

2011 ◽  
pp. 3560-3576
Author(s):  
Chung-Shing Lee ◽  
Nicholas S. Vonortas
Keyword(s):  
Business Model ◽  
Economies Of Scale ◽  
Disruptive Innovation ◽  
Transformation Process ◽  
Digital Economy ◽  
Cost Models ◽  
Internet Commerce ◽  
Business Executive ◽  
Revenue Models ◽  
Viable Business

A viable business model in the digital economy must follow the fundamental economic principles and be able to capitalize on the disruptive characteristics of the Internet commerce. This chapter presents an analytical method to assist business executive and entrepreneurs in evaluating and building a viable business model in the digital economy. This method is based on the concept of disruptive innovation, economies of scale and scope, and the theories of switching costs and transaction cost economics. It takes into account various cost models from both demand- and supply-side perspectives. The chapter contrasts the business transformation process and value creation strategies in the physical and digital economies, and discusses several e-commerce revenue models and pricing issues in the digital economy.

scholarly journals Marital Matching, Economies of Scale, and Intrahousehold Allocations

2020 ◽  
Vol 102 (4) ◽  
pp. 823-837
Author(s):  
Laurens Cherchye ◽  
Bram De Rock ◽  
Khushboo Surana ◽  
Frederic Vermeulen
Keyword(s):  
Economies Of Scale ◽  
Panel Study ◽  
Scale Economies ◽  
Preference Heterogeneity ◽  
Income Dynamics ◽  
Public And Private ◽  
Preference Information ◽  
The Public ◽  
The Us ◽  
Allocation Patterns

We propose a novel nonparametric method to empirically identify economies of scale in multiperson household consumption. We assume consumption technologies that define the public and private nature of expenditures through Barten scales. Our method (solely) exploits preference information revealed by a cross-section of household observations while accounting for fully unobserved preference heterogeneity. An application to data drawn from the US Panel Study of Income Dynamics shows that the method yields informative results on scale economies and intrahousehold allocation patterns. In addition, it allows us to define individual compensation schemes required to preserve the same consumption level in case of marriage dissolution or spousal death.

The evidence on the existence of economies Of scale in local government units

2017 ◽  
Vol 1 (2) ◽  
pp. 379 ◽  
Author(s):  
Primož Pevcin
Keyword(s):  
Local Government ◽  
Economies Of Scale ◽  
Returns To Scale ◽  
Scale Economies ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Administrative Costs ◽  
Government Operation ◽  
Major Reform ◽  
Limited Scale

<p>The purpose of this paper is to empirically verify if the possible existence of scale economies actually supports the argument that municipal consolidation is needed in Slovenia. The major reform of local self-government in Slovenia was implemented in 1994, when the transformation of existing 58 »communal« municipalities was envisaged. From 1995 onwards, the number of municipalities increased to the current number of 212 municipalities. Consequently, the necessity to implement structural reforms of local self-government in Slovenia has been stressed. The arguments favoring municipal amalgamations stressed that country has become too fragmented and municipal amalgamation would enable the reduction of (administrative) costs, and increase efficiency as well as quality of services provided, indicating that technical aspects of local government operation are targeted. Following, technical efficiency of Slovenian municipalities is estimated with the Data Envelopment Analysis (DEA) method, in order to determine if (and which) municipalities are experiencing increasing returns to scale (i.e., scale economies). The results indicate that there is important scale efficiency component, and predominantly very small municipalities are experiencing economies of scale, but their number is relatively low. Therefore, one of the classical arguments for municipal amalgamation, achieving economies of scale, can only be applied at a limited scale. This does not imply that more extensive amalgamation is not warranted, but it demands that other arguments justifying municipal amalgamation should be presented.  </p>

Agglomeration and Firm Performance: Economies of Scale, Localisation, and Urbanisation among Swedish Export Firms

2000 ◽  
Vol 32 (2) ◽  
pp. 305-321 ◽  
Author(s):  
Anders Malmberg ◽  
Bo Malmberg ◽  
Per Lundequist
Keyword(s):  
Economies Of Scale ◽  
Recent Literature ◽  
Export Performance ◽  
Scale Economies ◽  
Agglomeration Economies ◽  
Theoretical Development ◽  
Industrial Districts ◽  
Data Set ◽  
Unique Data ◽  
The Impact

In the 1990s, there has been an increase in interest in the spatial agglomeration of similar and related firms and industries. The recent literature is, however, marked by a lack of balance between theoretical development and empirical validation of the importance of agglomeration economies. Our aim in this paper is to redress the balance by assessing empirically the impact of various types of agglomeration economies on export performance. Our study is based on a unique data set including all Swedish export firms. We find that localisation economies are not as important as recent theoretical contributions on industrial districts, new industrial spaces, and innovative milieus have led us to believe. Instead, traditional scale economies, together with urbanisation economies, have a larger effect on export performance.

Technical efficiency and industry evolution in southern U.S. pulpwood harvesting

1994 ◽  
Vol 24 (2) ◽  
pp. 217-224 ◽  
Author(s):  
Douglas R. Carter ◽  
Frederick W. Cubbage
Keyword(s):  
Technical Efficiency ◽  
Economies Of Scale ◽  
Scale Economies ◽  
Analysis Of Covariance ◽  
Southern United States ◽  
Total Efficiency ◽  
Efficiency Measures ◽  
Method Effects ◽  
Frontier Production Function ◽  
Small Producers

This research measures technical efficiency among methods of pulpwood harvesting in the southern United States in 1979 and 1987. An econometric frontier production function is modeled using analysis of covariance methods, which results in consistent estimates of method effects. Employed efficiency measures isolate economies of scale from what can be termed pure technical efficiency. Harvesting methods utilizing either extremely low or high capitalization levels were the most technically efficient. Longwood grapple skidder systems were the most efficient, and intermediate systems least efficient. This suggests a noncontinuous improvement in harvesting technology that has investment implications for small producers interested in upgrading low capitalization systems. Scale economies represented only a small percentage of the total efficiency effect, the rest being attributed to efficiency of method. Thus, too much emphasis may be placed on the impacts of scale economies when analyzing structural change in the industry. Efficiency measures correlate well with the observed evolution of the industry over the period and conform with the predictions of economic theory.

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