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Scale efficiency and homotheticity: equivalence of primal and dual measures
Authors:Valentin Zelenyuk
Affiliation:1. Centre for Efficiency and Productivity Analysis (CEPA), School of Economics, The University of Queensland, 530, Colin Clark Building (39), St Lucia, Brisbane, QLD, 4072, Australia
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).
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