Measuring Plant Capacity, Utilization and Technical Change: A Nonparametric Approach

In this paper we develop measures of plant capacity, plant capacity utilization, and technical change based on observed best practice performance in a given industry. These measures are calculated as solutions to linear programming problems which are closely related to those used to calculate Farrel...

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Veröffentlicht in:	International economic review (Philadelphia) 1989-08, Vol.30 (3), p.655-666
Hauptverfasser:	Fare, Rolf, Grosskopf, Shawna, Kokkelenberg, Edward C.
Format:	Artikel
Sprache:	eng
Schlagworte:	Annuals Capacity utilization Economic models Efficiency Efficiency metrics Industry Input output analysis Linear programming Mathematical models Plant capacity Potential output Production capacity Production functions Productive efficiency Scalars Statistical analysis Studies Technological change Technology utilization
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Beschreibung
Zusammenfassung:	In this paper we develop measures of plant capacity, plant capacity utilization, and technical change based on observed best practice performance in a given industry. These measures are calculated as solutions to linear programming problems which are closely related to those used to calculate Farrell-type efficiency measures. An example using electric utility data is included.
ISSN:	0020-6598 1468-2354
DOI:	10.2307/2526781