Publication
Title
Static efficiency decompositions and capacity utilization : integrating economic and technical capacity notions
Author
Abstract
Starting from existing static decompositions of overall economic efficiency on nonparametric production and cost frontiers, this article proposes more comprehensive decompositions including several cost-based notions of capacity utilization. Furthermore, in case prices are lacking, we develop additional decompositions of overall technical efficiency integrating a technical concept of capacity utilization. These new efficiency decompositions provide a link between short and long run economic analysis and, in empirical work, avoid conflating inefficiency and differences in capacity utilization. An empirical analysis using a monthly panel of Chilean hydroelectric power plants illustrates the potential of these decomposition proposals.
Language
English
Source (journal)
Applied economics. - Oxford
Publication
Oxford : 2012
ISSN
0003-6846
Volume/pages
44:31(2012), p. 4125-4141
ISI
000301544100009
Full text (Publisher's DOI)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 14.05.2012
Last edited 14.09.2017
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