Returns-to-Scale

Joe Zhu ()
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Joe Zhu: Worcester Polytechnic Institute

Chapter 13 in Quantitative Models for Performance Evaluation and Benchmarking, 2014, pp 277-290 from Springer

Abstract: Abstract As demonstrated in Fig. 2.3 (Chap. 2, Envelopment DEA Models), the VRS envelopment model identifies the VRS frontier with DMUs exhibiting IRS (increasing returns to scale), CRS (constant returns to scale), and DRS (decreasing returns to scale). In fact, the economic concept of RTS (returns to scale) has been widely studied within the framework of DEA. RTS have typically been defined only for single output situations. DEA generalizes the notion of RTS to the multiple-output case. This, in turn, further extended the applicability of DEA.

Keywords: Envelopment Model; Multiple-output Case; Most Productive Scale Size (MPSS); Efficiency Scores; Estimation Spreadsheet (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-3-319-06647-9_13

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