Increasing Returns and Efficiency
Title | Increasing Returns and Efficiency PDF eBook |
Author | Martine Quinzii |
Publisher | Oxford University Press |
Pages | 174 |
Release | 1993-01-07 |
Genre | Business & Economics |
ISBN | 0195362241 |
Increasing returns to scale is an area in economics that has recently become the focus of much attention. While most firms operate under constant or decreasing return to scale on their relevant range of production, some firms produce goods or services with a technology which exhibits increasing returns to scale at levels of production which are large relative to the market. These goods are an important component of economic activity in a modern economy and are typically commodities produced either by a public sector or, as in the U.S., by regulated utilities. In this study, the author analyzes increasing returns using general equilibrium theory to take into account the interactions between production in the public and the private sector, and the effects of financing the public sector on the redistribution of income.
Efficiency Under Increasing Returns
Title | Efficiency Under Increasing Returns PDF eBook |
Author | Walter P. Heller |
Publisher | |
Pages | 17 |
Release | 1993 |
Genre | |
ISBN |
Increasing Returns and Economic Efficiency
Title | Increasing Returns and Economic Efficiency PDF eBook |
Author | Y. Ng |
Publisher | Springer |
Pages | 213 |
Release | 2009-04-30 |
Genre | Business & Economics |
ISBN | 0230236812 |
Recognizing increasing returns disrupts much of the established wisdom in economic analysis, making money non-neutral, equity conflict with freedom, and encouraging goods with increasing returns efficient. This book discusses these problems and ways they can be handled, helping to explain phenomena in the real world.
Efficiency in economies with increasing returns
Title | Efficiency in economies with increasing returns PDF eBook |
Author | Georg Tillmann |
Publisher | |
Pages | |
Release | 1980 |
Genre | |
ISBN |
Increasing Returns and Efficiency
Title | Increasing Returns and Efficiency PDF eBook |
Author | Martine Quinzii |
Publisher | |
Pages | 165 |
Release | 1992 |
Genre | Government business enterprises |
ISBN | 9780199855063 |
This study analyzes increasing returns to scale using general equilibrium theory to take into account the interactions between production in the public and private sectors. It also explores how the redistribution of income has been effected by financing the private sector.
The Increasing Returns and Economic Efficiency
Title | The Increasing Returns and Economic Efficiency PDF eBook |
Author | Yew-Kwang Ng |
Publisher | |
Pages | 19 |
Release | 2003 |
Genre | |
ISBN |
The Economics of Increasing Returns
Title | The Economics of Increasing Returns PDF eBook |
Author | Geoffrey M. Heal |
Publisher | |
Pages | 0 |
Release | 2011 |
Genre | |
ISBN |
Increasing returns is the source of some of the most powerful metaphors and intuitions in economics. Foremost among them are Adam Smith's statement that the division of labor is limited by the extent of the market and his discussion of the relationship between scale and economies of specialization in a pin factory. There is a weakness, strictly an error, in Adam Smith's analysis. Two phenomena that he grouped together and saw as integral to economic progress are in fact inconsistent. These are increasing returns with the consequent gains from specialization and the efficiency of the invisible hand. We now know that a society cannot have both, at least if one interprets the efficiency of the invisible hand as the Pareto efficiency of the competitive equilibrium, our only rigorous interpretation. This paper reviews the implications of increasing returns for several areas of economics: resource allocation and welfare economics; the micro foundations of macroeconomics; product variety and imperfect competition; information and information technology; economic growth; international trade. These cover the fields in which increasing returns cause departures from the results otherwise available. These departures are rather significant. Recognizing increasing returns affects the possibility of market equilibrium, can introduce sticky prices, causes economies to lock-in to inefficient technologies and introduce path-dependence, affects the possibility of continuing growth, produces hard problems for regulators, and changes our conception of the effects of international trade. All in all, increasing returns can change quite radically our view of how the economy operates. They make the economy seem more complicated and pose a challenge to our vision of a benign and powerful invisible hand.