Measurement of returns to scale in radial DEA models

Vladimir E. Krivonozhko, A. V. Lychev and Finn R. Førsund

Published in:

Computational Mathematics and Mathematical Physics, Volume 57, Issue 1, pp. 83-93, January 2017

DOI: 10.1134/S0965542517010080

Abstract:

A general approach is proposed in order to measure returns to scale and scale elasticity at projections points in the radial data envelopment analysis (DEA) models. In the first stage, a relative interior point belonging to the optimal face is found using a special, elaborated method. In previous work it was proved that any relative interior point of a face has the same returns to scale as any other interior point of this face. In the second stage, we propose to determine the returns to scale at the relative interior point found in the first stage.

Published Dec. 15, 2017 3:07 PM - Last modified Dec. 15, 2017 3:07 PM