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Returns-to-Scale

In: Quantitative Models for Performance Evaluation and Benchmarking

Author

Listed:
  • Joe Zhu

    (Worcester Polytechnic Institute)

Abstract

As demonstrated in Fig. 2.3 (Chap. 2, Envelopment DEA Models), the VRS envelopment model identifies the VRS frontier with DMUs exhibiting IRS (increasing returns to scale), CRS (constant returns to scale), and DRS (decreasing returns to scale). In fact, the economic concept of RTS (returns to scale) has been widely studied within the framework of DEA. RTS have typically been defined only for single output situations. DEA generalizes the notion of RTS to the multiple-output case. This, in turn, further extended the applicability of DEA.

Suggested Citation

  • Joe Zhu, 2014. "Returns-to-Scale," International Series in Operations Research & Management Science, in: Quantitative Models for Performance Evaluation and Benchmarking, edition 3, chapter 13, pages 277-290, Springer.
    • Handle: RePEc:spr:isochp:978-3-319-06647-9_13
    DOI: 10.1007/978-3-319-06647-9_13
    as

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