Estimating returns to scale using nonparametric deterministic technologies: a new method based on goodness-of-fit

Kristiaan Kerstens and Philippe Vanden Eeckaut

No 1997013, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: The purpose of this note is to define a new and more general method to obtain qualitative information about returns to scale for individual observations. In a second section the traditional methods developed for estimating returns to scale on nonparametric deterministic reference technologies (Data Envelopment Analysis (DEA) models) are reviewed. Section 3 provides a new and more general method that is suitable for all reference technologies. Its usefulness is illustrated by considering variations on an existing non-convex production model, known as the Free Disposal Hull (FDH). When different returns to scale assumptions are introduced into the FDH, then previous methods for determining returns to scale do no longer apply.

Keywords: returns to scale; FDH; DEA (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Date: 1997-02-01
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit (1999)
Working Paper: Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit (1999)
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