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Scale Efficiency and Scale Elasticity in DEA-models - A Bootstrapping Approach

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Author Info

  • Löthgren, Mickael

    () (Department of Economic Statistics)

  • Tambour, Magnus

    () (Centre for Health Economics)

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    Abstract

    This paper presents and applies different approaches to estimate returns to scale in multiple-input muliple-output technologies. Scale efficiency gives quantitative information of scale characteristics. A primal based approach to estimate the scale elasticity is proposed as an alternative to the earlier established dual based hyperplane approach. The different scale measures are defined in terms of technical efficiency measures, that can be estimated byb Data Envelopment Analysis (DEA). The DEA- method is inherently deterministic and hence offers no measures of uncertainty in the returns to scale estimates. Conditional on the sample at hand, the bootstrap offers a possibility to perform formal statistical hypotheses testing of the scale efficiencies and elasticities. Empirical evidence from (public) eye-care departments in Sweden from the years 1992 and 1993 is presented.

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    Bibliographic Info

    Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 91.

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    Length: 30 pages
    Date of creation: Jan 1996
    Date of revision:
    Publication status: Published in Applied Economics, 1999, pages 1231-1237.
    Handle: RePEc:hhs:hastef:0091

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    Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
    Phone: +46-(0)8-736 90 00
    Fax: +46-(0)8-31 01 57
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    Web page: http://www.hhs.se/
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    Related research

    Keywords: DEA; scale efficiency; bootstrap; eye-care services;

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