Returns to scope : a metric for production synergies demonstrated for hospital production

  title={Returns to scope : a metric for production synergies demonstrated for hospital production},
  author={Brandon Pope and Andrew Johnson},
Knowledge of the production function’s scope properties can provide insights for firms choosing their operating strategy, policy-makers considering industry structure, and analysts determining appropriate tools. We introduce a new property, returns to scope, which is distinct from scale properties and does not rely on price information. Based on desirable characteristics of an estimator of returns to scope, we propose two methods for assessment. We present examples using simulated data and… CONTINUE READING

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