Alternative Approaches to Estimate Returns to Scale in DEA- Models
AbstractThis paper presents a number of approaches to estimate returns to scale properties of general multiple-input muliple-output technologies. Both qualitative scale efficiency-properties and quantitative scale elasticity-properties are covered. The estimation approaches considered are based on data envelopment analysis (DEA)-models using primal production data on inputs and outputs. We propose an approach to estimate scale elasticity based on the primal efficiency problem. This alternative approach is derived as a direct approximation of the differentials of the efficiency measures in the scale elasticity definition. The different approaches to estimate scale efficiency and scale elasticity are exemplified and compared using a small dataset.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 90.
Length: 23 pages
Date of creation: Jan 1996
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Data envelopment analysis; scale efficiency; scale elasticity; dual linear programming;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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