Measurement of Returns to Scale Using Non-Radial DEA Models

Vladimir E. Krivonozhko, Finn Førsund and Andrey V. Lychev
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Vladimir E. Krivonozhko: National University of Science and Technology «MISiS», Postal: Moscow
Andrey V. Lychev: National University of Science and Technology «MISiS», Postal: Moscow

No 29/2012, Memorandum from Oslo University, Department of Economics

Abstract: There are some specific features of the non-radial DEA (data envelopment analysis) models which cause some problems under the returns to scale measurement. In the scientific literature on DEA, some methods were suggested to deal with the returns to scale measurement in the non-radial DEA models. These methods are based on using Strong Complementary Slackness Conditions in the optimization theory. However, our investigation and computational experiments show that such methods increase computational complexity significantly and may generate “strange” results. In this paper, we propose and substantiate a direct method for the returns to scale measurement in the non-radial DEA models. Our computational experiments documented that the proposed method works reliably and efficiently on the real-life data sets.

Keywords: Data envelopment analysis; Returns to scale; Non-radial models; Efficiency; Strong Complementary Slackness Conditions (search for similar items in EconPapers)
JEL-codes: C44 C61 C67 D24 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2012-11-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published as Krivonozhko, Vladimir E., Finn R. Førsund and Andrey V. Lychev, 'Measurement of Returns to Scale Using Non-Radial DEA Models' in european journal of operational research, 2014, pages 664-670.

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Journal Article: Measurement of returns to scale using non-radial DEA models (2014)
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