Returns to Scale in DEA

Rajiv D. Banker (), William W. Cooper (), Lawrence Seiford and Joe Zhu ()
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Rajiv D. Banker: Temple University
William W. Cooper: University of Texas at Austin
Joe Zhu: Worcester Polytechnic Institute

Chapter Chapter 2 in Handbook on Data Envelopment Analysis, 2011, pp 41-70 from Springer

Abstract: Abstract This chapter discusses returns to scale (RTS) in data envelopment analysis (DEA). The BCC and CCR models described in Chap. 1 of this handbook are treated in input-oriented forms, while the multiplicative model is treated in output-oriented form. (This distinction is not pertinent for the additive model, which simultaneously maximizes outputs and minimizes inputs in the sense of a vector optimization.) Quantitative estimates in the form of scale elasticities are treated in the context of multiplicative models, but the bulk of the discussion is confined to qualitative characterizations such as whether RTS is identified as increasing, decreasing, or constant. This is discussed for each type of model, and relations between the results for the different models are established. The opening section describes and delimits approaches to be examined. The concluding section outlines further opportunities for research and an Appendix discusses other approaches in DEA treatment of RTS.

Keywords: Data envelopment analysis; Efficiency; Returns to scale (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1007/978-1-4419-6151-8_2

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