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A Scale Elasticity Measure for Directional Distance Function and its Dual: Theory and DEA Estimation

Valentin Zelenyuk

No WP072012, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: In this paper we focus on scale elasticity measure based on directional distance function for multi-output-multi-input technologies, explore its fundamental properties and show its equivalence with the input oriented and output oriented scale elasticity measures. We also establish duality relationship between the scale elasticity measure based on the directional distance function with scale elasticity measure based on the profit function. Finally, we discuss the estimation issues of the scale elasticity based on the directional distance function via the DEA estimator.

Date: 2012
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Journal Article: A scale elasticity measure for directional distance function and its dual: Theory and DEA estimation (2013) Downloads
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