On the Equivalence of Two Concepts of Returns to Scale |
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| Authors: | Giovanni S.F. Bruno |
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| Affiliation: | UniversitàBocconi, Istituto di Economia Politica |
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| Abstract: | We examine the relationship between two widely used concepts of returns to scale at different levels of analysis. We show that while their weak global versions are equivalent, the strict global versions are not so. Versions at a given input vector are never equivalent, which invalidates a result by Ide and Takayama (1987). |
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| Keywords: | Returns to scale elasticity of scale production function |
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