Measurement of returns to scale in radial DEA models


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Abstract

A general approach is proposed in order to measure returns to scale and scale elasticity at projections points in the radial data envelopment analysis (DEA) models. In the first stage, a relative interior point belonging to the optimal face is found using a special, elaborated method. In previous work it was proved that any relative interior point of a face has the same returns to scale as any other interior point of this face. In the second stage, we propose to determine the returns to scale at the relative interior point found in the first stage.

About the authors

V. E. Krivonozhko

National University of Science and Technology “MISiS,”; Department of Information Technologies and Computing Systems

Author for correspondence.
Email: KrivonozhkoVE@mail.ru
Russian Federation, Moscow, 119049; Moscow, 117312

A. V. Lychev

National University of Science and Technology “MISiS,”

Author for correspondence.
Email: lychev@misis.ru
Russian Federation, Moscow, 119049

F. R. Førsund

Department of Economics

Author for correspondence.
Email: f.r.forsund@econ.uio.no
Norway, Blindern, 0317

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