Linear programming solutions and distance functions under α-returns to scale

Linear programming solutions and distance functions under α-returns to scale

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Article ID: iaor20105318
Volume: 61
Issue: 8
Start Page Number: 1297
End Page Number: 1301
Publication Date: Aug 2010
Journal: Journal of the Operational Research Society
Authors: , ,
Keywords: statistics: data envelopment analysis, programming: linear
Abstract:

This note generalizes analytical relationships among activity variables of Data envelopment analysis models previously derived in a previous article by the authors of this note. We relax the assumption of constant returns to scale by showing that the key results hold under a weaker assumption of homogeneity. We use the notion of α-returns to scale to extend the analysis to strictly increasing and decreasing returns, covering now the whole range of returns to scale for multi-output homogenous technologies.

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