Non-jointness and scope economies in the multiproduct symmetric generalized McFadden cost function

Nonjointness and Scope Economies in the Multiproduct Symmetric Generalized McFadden Cost Function

The multiproduct symmetric generalized McFadden cost function is increasingly prominent in empirical production analysis. Researchers should be aware that the scope for imposing and testing nonjointness in this model is limited. In the general version of the model, nonjointness requires the nontestable maintained hypothesis of similar (in a sense we define) single-output production technologies...

Comparing Supply Systems Derived from a Symmetric Generalized Mcfadden Profit Function to Isoelastic Supply Systems: Costs and Benefits

A major drawback of constant elasticity supply and demand systems, which are widely used in simulation models for applied policy analysis, is that they can’t be restricted to globally comply with certain conditions implied by economic theory. This paper compares constant elasticity systems to supply and demand systems derived from second order flexible functional forms (FFFs). Furthermore, supp...

The Cost Function and Scale Economies in Academic Research Libraries

Lewis Guodo Liu is an Associate Professor in the Newman Library at the Baruch College of the City University of New York; e-mail: [email protected]. The author would like to thank Dr. Richard E. Quandt, an emeritus professor of economics at Princeton University, and Dr. Robert M. Hayes, an emeritus professor of library and information science at UCLA, for their valuable comments and con...

The Cost of Jointness and How to Manage It

Although joint programs are typically formed to reduce costs, recent studies have suggested that joint programs experience larger cost growth than non-joint programs. To explain this phenomenon, we present a model that attributes joint program cost growth to agencies’ actions to maintain or regain their autonomy. We use this model to motivate principles for architecting joint programs and outli...

3 Economies of Scale in Cable Television : A Multiproduct Analysis