| Article ID: | iaor20072114 |
| Country: | Germany |
| Volume: | 145 |
| Issue: | 1 |
| Start Page Number: | 69 |
| End Page Number: | 87 |
| Publication Date: | Jul 2006 |
| Journal: | Annals of Operations Research |
| Authors: | Tone Kaoru, Sahoo Biresh K. |
We propose a new scheme for measuring scale elasticity of production based on a new cost efficiency model developed by Tone. Comparing our model with classical model we establish the superiority of our model over the latter based on the premise that the classical estimates of cost efficiency and scale elasticity can be illusory.