On Returns to Scale under Weight Restrictions in Data Envelopment Analysis

Kaoru Tone

Journal of Productivity Analysis, 2001, vol. 16, issue 1, 47 pages

Abstract: Weextend the concept of returns to scale in Data Envelopment Analysis(DEA) to the weight restriction environments. By the additionof weight restrictions, the status of returns to scale, i.e., increasing, constant and decreasing may suffer a change. Wefirst define ``returns to scale'' under weight restrictions andpropose a method for identifying the status of returns to scale.Then, it is demonstrated that the region of the most productivescale size (MPSS) will usually be narrowed by this addition.For an inefficient decision making unit (DMU), a simple rulefor determining the status of returns to scale of its projectedDMU will be presented. An empirical study compares the resultsof the proposed method with those of the BCC model and demonstratesthe change in the MPSS for both models. Copyright Kluwer Academic Publishers 2001

Keywords: DEA; assurance region model; returns to scale; most productive scale size; weight restriction (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (15)

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DOI: 10.1023/A:1011147118637

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