Primal Representations of the Technology
This chapter reviews and extends some basic materials. Starting with the most general description of a technology, we introduce the input and output distance functions, the technical efficiency measures, the concepts of homotheticity, global constant returns to scale, and Hicks neutrality. Finally, we will discuss measures of local scale elasticity, and provide an interpretation of local constant returns to scale.
KeywordsProductivity Index Optimal Scale Primal Representation Output Distance Function Linear Homogeneity
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