Measuring scale efficiency from a parametric hyperbolic distance function

Daehoon Nahm*, Ha Thu Vu

*Corresponding author for this work

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper shows how scale efficiency can be measured from an arbitrary parametric hyperbolic distance function with multiple outputs and multiple inputs. It extends the methods introduced by Ray (J Product Anal 11:183-194, 1998), and Balk (J Product Anal 15:159-183, 2001) and Ray (2003) that measure scale efficiency from a single-output multi-input distance function and from a multi-output and multi-input distance function, respectively. The method developed in the present paper is different from Ray's and Balk's in that it allows for simultaneous contraction of inputs and expansion of outputs. Theorems applicable to an arbitrary parametric hyperbolic distance function are introduced first, and then their uses in measuring scale efficiency are illustrated with the translog functional form.

Original languageEnglish
Pages (from-to)83-88
Number of pages6
JournalJournal of Productivity Analysis
Volume39
Issue number1
DOIs
Publication statusPublished - 2013

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