Back to Search
Start Over
RETURNS TO SCALE IN RETAIL TRADE.
- Source :
- Review of Income & Wealth; Dec73, Vol. 19 Issue 4, p363-384, 22p
- Publication Year :
- 1973
-
Abstract
- This paper attempts to estimate genuine scale effects in retail trade from a cross section of retail stores in Israel. This is done by estimating a simple production function for several retail branches and employing the faithful old direct Cobb-Douglas structure with value added as output and labor and capital inputs. And indeed despite the well-known peculiarities of the retail industry, a cross section estimation produces ‘normal’ production-function estimates with reasonable input elasticities. The estimates also identify marked increasing returns-to-scale parameters, higher in food and lower in branches less affected by consumer participation and geographical dispersion. These increasing returns may explain a good part of the increase in sales per unit of inputs observed in time series. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00346586
- Volume :
- 19
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Review of Income & Wealth
- Publication Type :
- Academic Journal
- Accession number :
- 5748156
- Full Text :
- https://doi.org/10.1111/j.1475-4991.1973.tb00897.x