Krivonozhko, Vladimir (Institute for Systems Analysis, Academy of Sciences, Moscow) Førsund, Finn R. () (Dept. of Economics, University of Oslo)
Abstract
Attempts can be found in the DEA literature to identify returns to scale at efficient interior points of the production possibility set on the basis of returns to scale at points of the corresponding reference sets. However, an opposite approach is put forward in this paper, advocating that returns-to-scale properties of efficient reference units should be found by identifying first returns to scale of an efficient interior unit that is a radial projection to the frontier of an inefficient unit. Returns-to-scale properties of both the corresponding reference units and units supporting the face in question can then be established.
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Publisher Info
Paper provided by Oslo University, Department of Economics in its series Memorandum with number
15/2009.