Journal of the Korean regional development association (한국지역개발학회지)

The Korean Regional Development Association (한국지역개발학회)
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Economies of Scale and Scope in Daejon City's Medical Services Industry in Korea

Economies of Scale and Scope in Daejon City's Medical Services Industry in Korea

Kim, Seon-Jae;Joo, Young-Jin

  • Published : 20030000
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Abstract

This study examines and empirical exploration of economies of scale and scope in Daejon city`s medical services industry in Korea using the multiple output translog cost function. The results indicate that there are not only product-specific scale economies in providing services, but also ray scale economy in this industry. The results also provide the evidence of economies of scope in particular with the joint production of inpatient and administrative services. In addition, the marginal cost of outpatient care services is considerably low until the number of enrollees reaches roughly 1,000 per monty.

Keywords

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