Determining Returns to Scale in VRS DEA Model

Sahoo, Biresh; Tone, Kaoru

Determining Returns to Scale in VRS DEA Model

Sahoo, B. K. and Tone, K. (2017) Determining Returns to Scale in VRS DEA Model. In K. Tone (ed.) Advances in DEA Theory and Applications: With Extensions to Forecasting Models (Chapter 5, pp. 33-37), John Wiley & Sons Ltd., U.K. ISBN: 978-1-118-94562-9, DOI: 10.1002/9781118946688.ch5

Posted: 7 Jun 2017

See all articles by Biresh Sahoo

Biresh Sahoo

Xavier Institute of Management

Kaoru Tone

National Graduate Institute for Policy Studies (GRIPS)

Date Written: May 6, 2017

Abstract

The existing methods in the data envelopment analysis (DEA) approach to determination of returns to scale (RTS) of firms apply only to production technologies exhibiting constant returns to scale and variable returns to scale (VRS). In this chapter, we present a brief review of the characterization of the RTS of firms using VRS DEA production technologies.

Keywords: scale elasticity, returns to scale, data envelopment analysis

JEL Classification: D24

Suggested Citation: Suggested Citation

Sahoo, Biresh K. and Tone, Kaoru, Determining Returns to Scale in VRS DEA Model (May 6, 2017). Sahoo, B. K. and Tone, K. (2017) Determining Returns to Scale in VRS DEA Model. In K. Tone (ed.) Advances in DEA Theory and Applications: With Extensions to Forecasting Models (Chapter 5, pp. 33-37), John Wiley & Sons Ltd., U.K. ISBN: 978-1-118-94562-9, DOI: 10.1002/9781118946688.ch5, Available at SSRN: https://ssrn.com/abstract=2980636