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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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    References listed on IDEAS

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    1. Cooper, William W. & Seiford, Lawrence M. & Zhu, Joe, 2000. "A unified additive model approach for evaluating inefficiency and congestion with associated measures in DEA," Socio-Economic Planning Sciences, Elsevier, vol. 34(1), pages 1-25, March.
    2. Sueyoshi, Toshiyuki & Sekitani, Kazuyuki, 2007. "The measurement of returns to scale under a simultaneous occurrence of multiple solutions in a reference set and a supporting hyperplane," European Journal of Operational Research, Elsevier, vol. 181(2), pages 549-570, September.
    3. Sueyoshi, Toshiyuki & Sekitani, Kazuyuki, 2007. "Measurement of returns to scale using a non-radial DEA model: A range-adjusted measure approach," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1918-1946, February.
    4. Tone, Kaoru & Sahoo, Biresh K., 2005. "Evaluating cost efficiency and returns to scale in the Life Insurance Corporation of India using data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 39(4), pages 261-285, December.
    5. Toshiyuki Sueyoshi, 1999. "DEA Duality on Returns to Scale (RTS) in Production and Cost Analyses: An Occurrence of Multiple Solutions and Differences Between Production-Based and Cost-Based RTS Estimates," Management Science, INFORMS, vol. 45(11), pages 1593-1608, November.
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    Citations

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    Cited by:

    1. Sueyoshi, Toshiyuki & Goto, Mika, 2011. "Methodological comparison between two unified (operational and environmental) efficiency measurements for environmental assessment," European Journal of Operational Research, Elsevier, vol. 210(3), pages 684-693, May.
    2. Diogo Ferreira & Rui Cunha Marques, 2018. "Identifying congestion levels, sources and determinants on intensive care units: the Portuguese case," Health Care Management Science, Springer, vol. 21(3), pages 348-375, September.
    3. Mehdiloozad, Mahmood & Zhu, Joe & Sahoo, Biresh K., 2018. "Identification of congestion in data envelopment analysis under the occurrence of multiple projections: A reliable method capable of dealing with negative data," European Journal of Operational Research, Elsevier, vol. 265(2), pages 644-654.
    4. 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.
    5. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Kao, Chiang, 2010. "Congestion measurement and elimination under the framework of data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 123(2), pages 257-265, February.
    12. 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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    Keywords

    DEA Congestion Returns to scale;

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