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Journal of Productivity Analysis

, Volume 42, Issue 1, pp 15–24 | Cite as

Scale efficiency and homotheticity: equivalence of primal and dual measures

  • Valentin Zelenyuk
Article

Abstract

We address the issue of equivalence of primal and dual measures of scale efficiency in general production theory framework. We find that particular types of homotheticity of technologies, which we refer to here as scale homotheticity, provide necessary and sufficient condition for such equivalence. We also identify the case when the scale homotheticity is equivalent to the homothetic structures from Shephard (Theory of cost and production functions, Princeton studies in mathematical economics. Princeton University Press, Princeton, 1970).

Keywords

Production theory Scale efficiency Homotheticity Duality theory 

JEL Classification

D24 

Notes

Acknowledgments

I would like to thank Erwin Diewert, Rolf Färe, John Farrell, Shawna Grosskopf, Knox Lovell, Chris O’Donnell, Antonio Peyrache and Prasada Rao for their valuable comments. I also thank the audience where this paper was presented and, in particular, participants of my seminar at the University of Auckland and at the Productivity Workshop of CEPA. I especially thank anonymous referees and the editor for their valuable comments; they helped improving this paper substantially. I remain to be solely responsible for my views expressed in this article.

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Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  1. 1.Centre for Efficiency and Productivity Analysis (CEPA), School of EconomicsThe University of QueenslandBrisbaneAustralia

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