Article ID: | iaor20053370 |
Country: | Netherlands |
Volume: | 23 |
Issue: | 2 |
Start Page Number: | 145 |
End Page Number: | 171 |
Publication Date: | May 2005 |
Journal: | Journal of Productivity Analysis |
Authors: | Bogetoft Peter, Wang Dexiang |
Keywords: | measurement |
We introduce simple production economic models to estimate the potential gains from mergers. We decompose the gains into technical efficiency, size (scale) and harmony (mix) gains, and we discuss alternative ways to capture these gains. We propose to approximate the production processes using the non-parametric Data Envelopment Analysis approach, and we use the resulting operational approach to estimate the potential gains from merging agricultural extension offices in Denmark.