Measurement of returns to scale using non-radial DEA models

Vladimir E. Krivonozhko, Finn Førsund and Andrey V. Lychev

European Journal of Operational Research, 2014, vol. 232, issue 3, 664-670

Abstract: There are some specific features of the non-radial data envelopment analysis (DEA) models which cause some problems for the returns to scale measurement. In the scientific literature on DEA, some methods were suggested to deal with the returns to scale measurement in the non-radial DEA models. These methods are based on using Strong Complementary Slackness Conditions from optimization theory. However, our investigation and computational experiments show that such methods increase computational complexity significantly and may generate as optimal, solutions contradicting optimization theory. In this paper, we propose and substantiate a direct method for the returns to scale measurement in the non-radial DEA models. Our computational experiments documented that the proposed method works reliably and efficiently on the real-life data sets.

Keywords: Data envelopment analysis; Returns to scale; Non-radial models; Efficiency; Strong Complementary Slackness Conditions (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Measurement of Returns to Scale Using Non-Radial DEA Models (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:232:y:2014:i:3:p:664-670

DOI: 10.1016/j.ejor.2013.06.046

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