 Data envelopment analysis: From non-monotonic to monotonic scale elasticitiesAndreas Dellnitz and Madjid Tavana European Journal of Operational Research, 2024, vol. 318, issue 2, 549-559 Abstract: The concept of returns to scale (RTS) or local scale elasticities in data envelopment analysis (DEA)—stemming from variable returns to scale (VRS) technology—has been recently criticized because of its misbehavior in the case of decreasing returns to scale (DRS). Here, the instrument should imply a downsizing force for improving productivity. In classical VRS technologies, however, it can hide respective improvement potentials: the more, the larger a company is. The non-monotonic behavior of local scale elasticities can address this effect. This study shows this phenomenon does not apply when using multiplicative DEA models. Therefore, we propose a new global scaling index that works in the classical VRS technology. We prove the new index is weakly monotonic and illustrate our theoretical findings in a banking context. Keywords: Data envelopment analysis; Scale elasticity; Monotonicity; Multiplicative models; Variable returns to scale (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:318:y:2024:i:2:p:549-559 DOI: 10.1016/j.ejor.2024.05.018 Access Statistics for this article European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.