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DETERMINING RETURNS TO SCALE IN THE VRS DEA MODEL

Biresh K. Sahoo, Kaoru Tone

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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.

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What this paper is about

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.

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Available 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.

Key concepts: Returns to scale, Data envelopment analysis, Scale (ratio), Econometrics, Production (economics), Variable (mathematics), Constant (computer programming), Economics

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