Abstract
In parametric analysis based on a frontier production function, usually the scale elasticity rather than scale efficiency level is reported. In this paper we show how one can use an estimated translog production function to obtain output- and input-oriented measures of scale efficiency at an observed input bundle. We also show how the estimated model can be used to determine the optimal quantity of labor input for an exogenously fixed quantity of capital.
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Ray, S.C. Measuring Scale Efficiency from a Translog Production Function. Journal of Productivity Analysis 11, 183–194 (1999). https://doi.org/10.1023/A:1007792201696
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DOI: https://doi.org/10.1023/A:1007792201696