Constant returns-to-scale production technologies with fixed ratio inputs and outputs

Ole Bent Olesen, Grammatoula Papaioannou and Victor V. Podinovski ()
Additional contact information
Ole Bent Olesen: The University of Southern Denmark
Grammatoula Papaioannou: Loughborough University
Victor V. Podinovski: Loughborough University

Journal of Productivity Analysis, 2025, vol. 63, issue 1, No 3, 37-48

Abstract: Abstract In practical applications of data envelopment analysis, inputs and outputs are often stated as ratio measures, including various percentages and proportions characterizing the production process. Such ratio measures are inconsistent with the basic assumptions of convexity and scalability required by the conventional variable and constant returns-to-scale (VRS and CRS) models. This issue has been addressed by the development of the Ratio-VRS (R-VRS) and Ratio-CRS (R-CRS) models of technology, both of which can incorporate volume and ratio inputs and outputs. In this paper, we provide a detailed standalone development of the special case of the R-CRS technology, referred to as the F-CRS technology, in which all ratio inputs and outputs are of the fixed type. Such ratio measures can be used to represent environmental and quality characteristics of the production process that stay constant while simultaneously allowing the scaling of the volume of production. We illustrate the use of the F-CRS technology by an application in the context of school education.

Keywords: Data envelopment analysis; Production technology; Constant returns to scale; Ratio inputs and outputs (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11123-024-00734-2 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:63:y:2025:i:1:d:10.1007_s11123-024-00734-2

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-024-00734-2

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().