We estimate a health investment equation, derived from a health capital model that is an extension of the well-known Grossman model. Of particular interest is whether the health production function has constant returns to scale, as in the standard Grossman model, or decreasing returns to scale, as in the Ehrlich-Chuma model and extensions thereof. The model with decreasing returns to scale has ...

Efficiency Analysis for Multicomponent Production Processes Conventional models concerned with efficiency analysis of organizations typically consider a single production process, or technology, in which all inputs are used the outputs. This approach does not account well situations involved several component processes whose and outputs may be shared by different processes. The main difficulty ...

Abstract Increasing returns to scale is the basis for many powerful results in economics and economic geography. But limitations of assumptions about growth theories are often ignored when applied This leads an unintentional bias favoring mistaken conclusions geography, growth. Alternatively, this used as a convenient modeling trick by urban economists describe agglomeration economies innovatio...