They predicted that given the assumptions of identical technology and constant returns to scale
, a country would tend to export a commodity which requires the intensive use of the country's relatively abundant factor.
Constant returns to scale
occurs when there is a built-in rigidity or independence to the operation while economies of scope indicate a degree of flexibility.
Elsewhere in the Asian region, only the top two players in the convenience store business tend to be profitable due to the intensity of the logistics requirements, which drive returns to scale
The maximizing linear programming setting in (2) assumes constant returns to scale
Output oriented super slacks based model of data envelopment analysis was applied under constant returns to scale
This paper shows that there are two main factors that affect the benefits of specialization: returns to scale
and nonconvexity of the technology.
The estimations are within the approach of variable returns to scale
with slacks developed by Banker, Charnes, and Cooper (1984) and the constant returns to scale
approach developed by Chames, Cooper, and Rhodes (1978).
In this article, I investigate the size of the returns to scale
in aggregate U.
Production function approach to productivity measurement is more advantageous because it can handle the problems arising out of non-separability of inputs and output, non-neutral technical change, variable returns to scale
and non-proportionality of input prices of their respective marginal productivity in an explicit manner.
The second assumption of variable returns to scale
, which assumes that the fishing boat worked at levels less than its maximum capacity.
The DEA can be conducted under the assumption of constant returns to scale
(CRS) or variable returns to scale
1%, the TFP effect of innovative adaptation on growth is even smaller than the returns to scale
effect from 2001-2011.