EconPapers    
Economics at your fingertips  
 

Calculating the scale elasticity in DEA models

Finn R. F\F8rsund () and Lennart Hjalmarsson
Authors registered in the RePEc Author Service: Finn R. Førsund

ICER Working Papers from ICER - International Centre for Economic Research

Abstract: In economics scale properties of a production function is charcterised by the value of the scale elasticity. In the field of efficiency studies this is also a valid approach for the frontier production function. It has no good meaning to talk about scale properties of inefficient observations. In the DEA literature a qualitative characterisation is most common. The contribution of the paper is to apply the concept of scale elasticity from multi output production theory in economics to the piecewise linear frontier production function, and to develop formulas for calculating values of the scale elasticity for radial projections of inefficient observations. Illustrations also on real data are provided, showing the differences between scale elasticity values for the input- and output oriented projections and the range of values for efficient observations.

Keywords: Scale elasticity; DEA, production theory; Farrell efficiency measures (search for similar items in EconPapers)
JEL-codes: C61 D24 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2002-06
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.bemservizi.unito.it/repec/icr/wp2002/forsund28-02.pdf (application/pdf)

Related works:
Journal Article: Calculating scale elasticity in DEA models (2004) Downloads
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:icr:wpicer:28-2002

Access Statistics for this paper

More papers in ICER Working Papers from ICER - International Centre for Economic Research Corso Unione Sovietica, 218bis - 10134 Torino - Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Daniele Pennesi ().

 
Page updated 2023-01-27
Handle: RePEc:icr:wpicer:28-2002