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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.

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Authors and Affiliations

  1. National University of Science and Technology “MISiS,”, Moscow, 119049, Russia

    V. E. Krivonozhko & A. V. Lychev

  2. Department of Information Technologies and Computing Systems, Russian Academy of Sciences, Moscow, 117312, Russia

    V. E. Krivonozhko

  3. Department of Economics, University of Oslo, Box 1095, Blindern, 0317, Norway

    F. R. Førsund

Authors
  1. V. E. Krivonozhko
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  2. A. V. Lychev
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  3. F. R. Førsund
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Correspondence to V. E. Krivonozhko, A. V. Lychev or F. R. Førsund.

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Original Russian Text © V.E. Krivonozhko, A.V. Lychev, F.R. Førsund, 2017, published in Zhurnal Vychislitel’noi Matematiki i Matematicheskoi Fiziki, 2017, Vol. 57, No. 1, pp. 69–80.

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Krivonozhko, V.E., Lychev, A.V. & Førsund, F.R. Measurement of returns to scale in radial DEA models. Comput. Math. and Math. Phys. 57, 83–93 (2017). https://doi.org/10.1134/S0965542517010080

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