Returns to scale in different Data Envelopment Analysis models

Returns to scale in different Data Envelopment Analysis models

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Article ID: iaor20051976
Country: Netherlands
Volume: 154
Issue: 2
Start Page Number: 345
End Page Number: 362
Publication Date: Apr 2004
Journal: European Journal of Operational Research
Authors: , , , ,
Abstract:

This paper discusses returns to scale (RTS) in data envelopment analysis (DEA) for each of the presently available types of models. The BCC and CCR models are treated in input oriented forms while the multiplicative model is treated in output oriented form. (This distinction is not pertinent for the additive model which simultaneously maximizes outputs and minimizes inputs in the sense of a vector optimization.) Quantitative estimates in the form of scale elasticities are treated in the context of multiplicative models, but the bulk of the discussion is confined to qualitative characterizations such as whether RTS is identified as increasing, decreasing or constant. This is discussed for each type of model and relations between the results for the different models are established. The opening section describes and delimits approaches to be examined. The concluding section outlines further opportunities for research.

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