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Global and local scale characteristics in convex and nonconvex nonparametric technologies: A first empirical exploration

Giovanni Cesaroni, Kristiaan Kerstens () and Ignace Van de Woestyne

European Journal of Operational Research, 2017, vol. 259, issue 2, 576-586

Abstract: The purpose of this contribution is to empirically implement and supplement the proposals made by Podinovski (2004b) to explore the nature of both global and local returns to scale in nonconvex nonparametric technologies. In particular, we both propose a simplified method to compute the global returns to scale and employ some secondary data sets to investigate the frequency of the special case of global sub-constant returns to scale. Furthermore, when determining global returns to scale using both convex and nonconvex technologies, we verify how often the resulting information is concordant or conflicting. Finally, besides comparing the FDH and DEA evolution of ray-average productivity for some typical individual observations, we introduce in the literature two original methods for the determination of local returns to scale in nonconvex technologies.

Keywords: Data Envelopment Analysis; Free Disposal Hull; Global returns to scale; Local returns to scale (search for similar items in EconPapers)
Date: 2017
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Working Paper: Global and local scale characteristics in convex and nonconvex nonparametric technologies: A first empirical exploration (2017)
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