Bridging the gap between the constant and variable returns-to-scale models: selective proportionality in data envelopment analysis
UNSPECIFIED. (2004) Bridging the gap between the constant and variable returns-to-scale models: selective proportionality in data envelopment analysis. JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY, 55 (3). pp. 265-276. ISSN 0160-5682Full text not available from this repository.
Official URL: http://dx.doi.org/10.1057/palgrave.jors.2601691
In data envelopment analysis (DEA), the use of constant returns-to-scale (CRS) models requires the assumption of full proportionality between all inputs and outputs. Often such proportionality cannot be assumed, although there may be a subset of outputs proportional to a subset of inputs. By using the variable returns-to-scale (VRS) model, this information is effectively ignored and the efficiency of units is overestimated. This paper develops a hybrid approach that combines the assumption of CRS with respect to the selected sets of inputs and outputs, while preserving the VRS assumption with respect to the remaining indicators. The resulting hybrid returns-to-scale models exhibit better discrimination than the VRS model. In certain cases, their discrimination surpasses that of the CRS model, an example of which is given.
|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:||PALGRAVE PUBLISHERS LTD|
|Number of Pages:||12|
|Page Range:||pp. 265-276|
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