Data Envelopment Analysis Journal > Vol 2 > Issue 2

Estimating a Nonparametric Homothetic S-Shaped Production Relation for the US West Coast Groundfish Production 2004–2007

O. B. Olesen, Department of Business and Economics, The University of Southern Denmark, Denmark, ole@sam.sdu.dk J. Ruggiero, School of Business Administration, University of Dayton, USA, jruggiero1@udayton.edu A. T. Mamula, National Oceanic and Atmospheric Administration, Southwest Fisheries Science Center, aaron.mamula@noaa.gov
 
Suggested Citation
O. B. Olesen, J. Ruggiero and A. T. Mamula (2017), "Estimating a Nonparametric Homothetic S-Shaped Production Relation for the US West Coast Groundfish Production 2004–2007", Data Envelopment Analysis Journal: Vol. 2: No. 2, pp 163-199. http://dx.doi.org/10.1561/103.00000021

Published: 27 Sep 2017
© 2017 O. B. Olesen, J. Ruggiero and A. T. Mamula
 
Subjects
Productivity measurement and analysis
 
Keywords
Data envelopment analysis (DEA)S-shaped production functionIsoquant estimationFisheries
 

Article Help

Share

Download article
In this article:
1. Introduction
2. Production Technology, Multiple Inputs and One Output
3. Production Technology, Multiple Output and One Input
4. Frisch's S-Shaped Short-Run Production Function
5. Estimating the Base Output Isoquant
6. An Estimator of a Piecewise Linear S-Shaped Frontier and the Inflection Point
7. Application to US West Coast Groundfish Production
8. Conclusion and Further Research
Appendix
References

Abstract

The use of the convex hull estimation in data envelopment analysis (DEA) models is often characterized as a variable returns to scale model. However it is well known that standard microeconomic production theory posits a nonconvex S-shaped production frontier, i.e. a production technology that obeys the Regular Ultra Passum Law with a monotone decreasing scale elasticity along any expansion path. Recently for a homothetic production relation a nonparametric estimation approach that allows for a nonconvex S-shaped scaling law has been proposed. In this paper we use this approach to analyze and estimate scale characteristics of the US West Coast groundfish production for the period 2004–2007.

DOI:10.1561/103.00000021