IDEAS home Printed from https://ideas.repec.org/p/hhs/hastef/0090.html
   My bibliography  Save this paper

Alternative Approaches to Estimate Returns to Scale in DEA- Models

Author

Listed:
  • Löthgren, Mickael

    () (Department of Economic Statistics)

  • Tambour, Magnus

    () (Centre for Health Economics)

Abstract

This 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.

Suggested Citation

  • Löthgren, Mickael & Tambour, Magnus, 1996. "Alternative Approaches to Estimate Returns to Scale in DEA- Models," SSE/EFI Working Paper Series in Economics and Finance 90, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0090
    as

    Download full text from publisher

    File URL: http://swopec.hhs.se/hastef/papers/hastef0090.ps
    Download Restriction: no

    File URL: http://swopec.hhs.se/hastef/papers/hastef0090.ps.zip
    Download Restriction: no

    File URL: http://swopec.hhs.se/hastef/papers/hastef0090.pdf
    Download Restriction: no

    File URL: http://swopec.hhs.se/hastef/papers/hastef0090.pdf.zip
    Download Restriction: no

    References listed on IDEAS

    as
    1. Banker, Rajiv D. & Thrall, R. M., 1992. "Estimation of returns to scale using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 62(1), pages 74-84, October.
    2. Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants," Economic Journal, Royal Economic Society, vol. 89(354), pages 294-315, June.
    3. Chang, Kuo-Ping & Guh, Yeah-Yuh, 1991. "Linear production functions and the data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 52(2), pages 215-223, May.
    4. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. John C. Panzar & Robert D. Willig, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, Oxford University Press, vol. 91(3), pages 481-493.
    7. Joe Zhu & Zhao-Han Shen, 1995. "A discussion of testing DMUs' returns to scale," European Journal of Operational Research, Elsevier, vol. 81(3), pages 590-596, March.
    8. Forsund, F.R., 1995. "A Note on the Calculation of the Scale Elasticity in DEA Models," Memorandum 34/1995, Oslo University, Department of Economics.
    9. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    10. Fare, Rolf & Grosskopf, Shawna, 1994. "Estimation of returns to scale using data envelopment analysis: A comment," European Journal of Operational Research, Elsevier, vol. 79(2), pages 379-382, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1999. "Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit," European Journal of Operational Research, Elsevier, vol. 113(1), pages 206-214, February.
    2. Malgorzata Pawlowska, 2003. "The Impact of M&A on Technical Efficiency, Scale Efficiency and Productivity Change in the Polish Banking Sector: a Non-Parametric Approach," NBP Working Papers 29, Narodowy Bank Polski, Economic Research Department.
    3. Simar, Leopold & Wilson, Paul W., 2002. "Non-parametric tests of returns to scale," European Journal of Operational Research, Elsevier, vol. 139(1), pages 115-132, May.
    4. Khem Sharma & Pingsun Leung & Halina Zaleski, 1997. "Productive Efficiency of the Swine Industry in Hawaii: Stochastic Frontier vs. Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 8(4), pages 447-459, November.

    More about this item

    Keywords

    Data envelopment analysis; scale efficiency; scale elasticity; dual linear programming;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hastef:0090. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helena Lundin). General contact details of provider: http://edirc.repec.org/data/erhhsse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.