Ratio‐based RTS determination in weight‐restricted DEA models

Ratio‐based RTS determination in weight‐restricted DEA models

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Article ID: iaor20118269
Volume: 215
Issue: 2
Start Page Number: 431
End Page Number: 438
Publication Date: Dec 2011
Journal: European Journal of Operational Research
Authors: , ,
Keywords: returns to scale
Abstract:

This paper provides computationally efficient approaches for determining to which returns to scale (RTS) class a unit belongs in weight‐restricted Data Envelopment Analysis (DEA) models. A non‐traditional computational algorithm is introduced. The suggested approach is based on the calculation of certain ratios within the data set and offers obvious computational advantages over the traditional approaches involving the solution of standard DEA models. Some theorems and algorithms are given. Computational advantages of the provided results are discussed and one of the algorithms is illustrated using real world data.

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