Title: Static Efficiency Decompositions and Capacity Utilisation: Integrating Economic and Technical Capacity Notions
Authors: De Borger, Bruno ×
Kerstens, Kristiaan
Prior, Diego
Van de Woestyne, Ignace #
Issue Date: 2012
Publisher: Routledge Limited
Series Title: Applied Economics vol:44 issue:31 pages:4125-4141
Abstract: Starting from existing static decompositions of overall economic efficiency on non parametric production and cost frontiers, this paper proposes more comprehensive decompositions including several cost based notions of capacity utilisation. Furthermore, in case prices are lacking, we develop additional decompositions of overall technical efficiency integrating a technical concept of capacity utilisation. These new efficiency decompositions provide a link between short and long run economic analysis and, in empirical work, avoid conflating inefficiency and differences in capacity utilisation. An empirical analysis using a monthly panel of Chilean hydro-electric power plants illustrates the potential of these decomposition proposals.
ISSN: 0003-6846
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Faculty of Economics and Business (FEB) - miscellaneous
Research Centre for Mathematical Economics, Econometrics and Statistics, Campus Brussels (-)
× corresponding author
# (joint) last author

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