Jump to ContentJump to Main Navigation
Dynamic Efficiency and Productivity Measurement$
Users without a subscription are not able to see the full content.

Elvira Silva, Spiro E. Stefanou, and Alfons Oude Lansink

Print publication date: 2021

Print ISBN-13: 9780190919474

Published to Oxford Scholarship Online: April 2021

DOI: 10.1093/oso/9780190919474.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 17 September 2021



(p.11) 1 Overview
(p.iii) Dynamic Efficiency and Productivity Measurement

Elvira Silva

Spiro E. Stefanou

Alfons Oude Lansink

Oxford University Press

This chapter characterizes production in a dynamic decision-making environment. The classic characterization of static firm decision making is contrasted with the dynamic decision environment where not all inputs are freely adjusted. The latter characterization is motivated by the conjecture that transaction costs are associated with adjusting the capital stock at a rapid rate per unit of time and these costs increase rapidly with the absolute rate of investment. In fact, these costs increase so rapidly that the firm may never attempt to achieve a jump in its capital stock at any given moment. Such transaction (or adjustment) costs have implications for the nature of the technology. This interplay is introduced in this chapter and serves as a foundation for the dynamic structure that follows throughout the book.

Keywords:   dynamic production technology, adjustment cost hypothesis, short run, long run, capacity utilization, nonconvex production

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .