Abstract
Modeling “quasiconcavity” and “variable returns to scale” simultaneously is a challenging task. This paper defines variable returns to scale vigorously and explores its relationships with elasticity of scale and S-shaped functions. To check empirical data for consistency with both properties, this paper extends the current nonparametric tests for quasiconcave function to include both increasing and decreasing returns to scale. To accomplish this task, an empirical quasiconcave production function that exhibits variable returns to scale is introduced.
Original language | English |
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Pages (from-to) | 160-170 |
Number of pages | 11 |
Journal | Journal of Mathematical Economics |
Volume | 82 |
DOIs | |
Publication status | Published - May 2019 |
Scopus Subject Areas
- Economics and Econometrics
- Applied Mathematics
User-Defined Keywords
- Nonparametric tests
- Quasiconcave production function
- S-shaped production function
- Variable returns to scale