ON THE CALCULATION OF SCALE ECONOMIES FROM TRANSPORT COST FUNCTIONS.

Author(s)
Jara-Diaz, S.R. & Cortes, C.E.
Year
Abstract

A method is presented to decide how to calculate the degree of scale economies from estimated transport cost functions which include aggregate output and attributes as arguments. It is shown that the cost elasticity of each of these aggregates should be weighed by a factor that depends crucially on the relation between the aggregate and the output vector. The method is applied to commonly used output indices and attributes, showing that the weights rank from one to zero. Some of them are interrelated and their values depend upon the operating rules of the firm. (Author/publisher).

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Publication

Library number
I 882184 [electronic version only] /10 / IRRD 882184
Source

Journal of Transport Economics and Policy. 1996 /05. 30(2) Pp157-70 (22 Refs.)

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This publication is one of our other publications, and part of our extensive collection of road safety literature, that also includes the SWOV publications.