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Returns to Scale Revisited – Towards Cross-RTS

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Nachhaltiges Entscheiden

Abstract

In neoclassical economic theory, the production function expresses the technological efficient relationship between inputs and one output (see Shephard 1970). In this theoretical framework, the scale elasticity or returns to scale (RTS), respectively, is a measure of the outputs’ reaction with respect to radial change of inputs; it is one of the most commonly used indices in economic theory. Later, Starrett (1977) and Panzar/Willig (1977) generalized the concept of RTS for multiple outputs. For either simple or multiple outputs, we might have constant, increasing and decreasing RTS.

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Authors and Affiliations

  1. Hagen, Deutschland

    Andreas Kleine, Wilhelm Rödder & Andreas Dellnitz

Authors
  1. Andreas Kleine
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  2. Wilhelm Rödder
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  3. Andreas Dellnitz
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Correspondence to Andreas Kleine .

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Editors and Affiliations

  1. Technische Universität Braunschweig, Germany

    Heinz Ahn

  2. RWTH Aachen, Aachen, Germany

    Marcel Clermont

  3. Technische Universität Ilmenau, Ilmenau, Germany

    Rainer Souren

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Kleine, A., Rödder, W., Dellnitz, A. (2016). Returns to Scale Revisited – Towards Cross-RTS. In: Ahn, H., Clermont, M., Souren, R. (eds) Nachhaltiges Entscheiden. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-12506-6_21

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  • DOI: https://doi.org/10.1007/978-3-658-12506-6_21

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  • Print ISBN: 978-3-658-12505-9

  • Online ISBN: 978-3-658-12506-6

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