Measuring technical efficiency under variable returns to scale using Debreu's loss function

Juan José Díaz-Hernández, David-José Cova-Alonso and Eduardo Martínez-Budría

European Journal of Operational Research, 2025, vol. 323, issue 3, 975-987

Abstract: This paper proposes a model that makes two contributions to the measurement of technical efficiency under a technology with variable returns to scale. First, the criteria for identifying an optimal benchmark are not limited to technical dominance and Pareto efficiency, but also include maximum average productivity, defined as the ratio between a weighted linear aggregate of outputs and inputs.

Keywords: DEA; Productivity; Debreu's loss function; Technical efficiency measure; Elasticity of scale (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:323:y:2025:i:3:p:975-987

DOI: 10.1016/j.ejor.2024.12.050

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