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Improving the identification of returns to scale in data envelopment analysis

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UNSPECIFIED (2000) Improving the identification of returns to scale in data envelopment analysis. JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, 51 (1). pp. 102-110. ISSN 0160-5682

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Abstract

In order to assess the efficiencies of a set of production units, it is necessary to identify the nature of returns to scale which characterise efficient production. Some methods have been developed to test the nature of the scale elasticity across the full range of scale sizes. However these tests are heavily weighted by the majority of the units and may not identify small ranges of scale size when different returns to scale hold. This paper develops a procedure based on a combination of Data Envelopment Analysis and regression analysis to identify the ranges of scale size where the returns to scale may differ from those in other ranges for the single-output, multi-input case. We also develop a measure of scale size across different input mixes.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Journal or Publication Title: JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
Publisher: STOCKTON PRESS
ISSN: 0160-5682
Date: January 2000
Volume: 51
Number: 1
Number of Pages: 9
Page Range: pp. 102-110
Publication Status: Published
URI: http://wrap.warwick.ac.uk/id/eprint/13571

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