Template-Type: ReDIF-Paper 1.0 Author-Name: Balk, B.M. Author-Name-Last: Balk Author-Name-First: Bert Author-Name: Zofío, J.L. Author-Name-Last: Zofío Author-Name-First: José Title: The Decompositions of Cost Variation Abstract: In this paper a number of meaningful and empirically implementable decom- positions of the cost variation (in difference and ratio form) are developed. The components distinguished are price level change, technical efficiency change, allocative efficiency change, technological change, scale of activity change, and price structure change. Given data from a (balanced) panel of produc- tion units, all the necessary ingredients for the computation of the various decompositions can be obtained by using linear programming techniques. An application is provided. Length: 20 Creation-Date: 2019-05-09 File-URL: https://repub.eur.nl/pub/116408/ERS-2019-006-LIS.pdf File-Format: application/pdf Series: RePEc:ems:eureri Number: ERS-2019-006-LIS Classification-JEL: C43, D24, O12 Keywords: Cost variation, decomposition, efficiency change, technological change, index number theory Handle: RePEc:ems:eureri:116408