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DEA congestion and returns to scale under an occurrence of multiple optimal projections

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  • Sueyoshi, Toshiyuki
  • Sekitani, Kazuyuki

Abstract

Economic implications of congestion have been recently discussed in many DEA (data envelopment analysis) studies. In addition, several previous research efforts have explored a theoretical linkage between returns to scale (RTS) and the concept of congestion, because the two economic concepts are closely connected to each other. Tone and Sahoo [Tone, K., Sahoo, B.K., 2004. Degree of scale economies and congestion: A unified DEA approach. European Journal of Operational Research 158, 755-772] have published the theoretical linkage in this journal. All of the previous studies, including their research (2004), assume a unique optimal solution in the investigation on DEA-based congestion. When multiple solutions occur in DEA-based congestion measurement, the economic implications of congestion obtained from the previous research are all problematic from both theoretical and practical perspectives. To deal with the issue, this study explores how to deal with the occurrence of multiple solutions in the DEA-based congestion measurement. This study proposes a new approach for the congestion measurement and theoretically compares the proposed approach with Tone and Sahoo (2004).

Suggested Citation

  • Sueyoshi, Toshiyuki & Sekitani, Kazuyuki, 2009. "DEA congestion and returns to scale under an occurrence of multiple optimal projections," European Journal of Operational Research, Elsevier, vol. 194(2), pages 592-607, April.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:2:p:592-607
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    4. Ren, Xian-tong & Fukuyama, Hirofumi & Yang, Guo-liang, 2022. "Eliminating congestion by increasing inputs in R&D activities of Chinese universities," Omega, Elsevier, vol. 110(C).
    5. Maryam Shadab & Saber Saati & Reza Farzipoor Saen & Mohammad Khoveyni & Amin Mostafaee, 2021. "Detecting congestion in DEA by solving one model," Operations Research and Decisions, Wroclaw University of Science Technology, Faculty of Management, vol. 31(1), pages 77-96.
    6. Sueyoshi, Toshiyuki & Goto, Mika, 2019. "The intermediate approach to sustainability enhancement and scale-related measures in environmental assessment," European Journal of Operational Research, Elsevier, vol. 276(2), pages 744-756.
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    8. Xian-tong Ren & Guo-liang Yang, 2024. "Eliminating congestion in China’s papermaking and paper products industry: From both the perspective of increasing and decreasing inputs," Journal of Productivity Analysis, Springer, vol. 61(1), pages 63-82, February.
    9. Fang, Lei, 2015. "Congestion measurement in nonparametric analysis under the weakly disposable technology," European Journal of Operational Research, Elsevier, vol. 245(1), pages 203-208.
    10. Maryam Shadab & Saber Saati & Reza Farzipoor Saen & Mohammad Khoveyni & Amin Mostafaee, 2021. "Detecting congestion in DEA by solving one model," Operations Research and Decisions, Wroclaw University of Science Technology, Faculty of Management, vol. 31, pages 77-96.
    11. Alfonso Mendoza-Velázquez & Francisco Benita, 2019. "Efficiency, Productivity, and Congestion Performance: Analysis of the Automotive Cluster in Mexico," Journal of Industry, Competition and Trade, Springer, vol. 19(4), pages 661-678, December.
    12. Sueyoshi, Toshiyuki & Goto, Mika, 2012. "Returns to scale and damages to scale under natural and managerial disposability: Strategy, efficiency and competitiveness of petroleum firms," Energy Economics, Elsevier, vol. 34(3), pages 645-662.
    13. Wang, H. & Zhou, P. & Zhou, D.Q., 2013. "Scenario-based energy efficiency and productivity in China: A non-radial directional distance function analysis," Energy Economics, Elsevier, vol. 40(C), pages 795-803.
    14. Hu, Jin-Li & Chang, Ming-Chung & Tsay, Hui-Wen, 2017. "The congestion total-factor energy efficiency of regions in Taiwan," Energy Policy, Elsevier, vol. 110(C), pages 710-718.
    15. Chiang Kao & Shiang-Tai Liu & Hwei-Lan Pao, 2012. "Assessing improvement in management research in Taiwan," Scientometrics, Springer;Akadémiai Kiadó, vol. 92(1), pages 75-87, July.
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    17. Sueyoshi, Toshiyuki & Shang, Jennifer & Chiang, Wen-Chyuan, 2009. "A decision support framework for internal audit prioritization in a rental car company: A combined use between DEA and AHP," European Journal of Operational Research, Elsevier, vol. 199(1), pages 219-231, November.

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