Cost-optimal scale of child care institutions

Citation
V. Ringstad et K. Loyland, Cost-optimal scale of child care institutions, J PROD ANAL, 10(3), 1998, pp. 305-311
Citations number
9
Categorie Soggetti
Economics
Journal title
JOURNAL OF PRODUCTIVITY ANALYSIS
ISSN journal
0895562X → ACNP
Volume
10
Issue
3
Year of publication
1998
Pages
305 - 311
Database
ISI
SICI code
0895-562X(199811)10:3<305:CSOCCI>2.0.ZU;2-Q
Abstract
In this paper we explore the scale properties in the operation of child car e institutions. The main issue is whether or not there exists a technically optimal scale of operation. Our results, based on a homothetic production function model and data from a sample of Norwegian child care institutions, suggest that a technically optimal scale does exist. This confirms some of the results recently obtained for US child care institutions.