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A New Input‐Oriented Plant Capacity Notion: Definition and Empirical Comparison
Author(s) -
Cesaroni Giovanni,
Kerstens Kristiaan,
Van de Woestyne Ignace
Publication year - 2017
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.12201
Subject(s) - measure (data warehouse) , convexity , economics , computer science , capacity utilization , econometrics , mathematical economics , microeconomics , environmental economics , financial economics , data mining
Starting from the existing output‐oriented plant capacity measure, this paper proposes a new input‐oriented plant capacity measure. Furthermore, we empirically illustrate both input‐oriented and output‐oriented decompositions of technical efficiency integrating these technical concepts of capacity utilization. In particular, we pay attention to the impact of convexity of the technology on both input‐oriented and output‐oriented plant capacity measures.