A SIMPLE CHARACTERIZATION OF RETURNS TO SCALE IN DEA
Access this Article
Search this Article
In this paper, we will present a simple method for deciding the local returns-to-scale characteristics of DMUs (Decision Making Units) in Data Envelopment Analysis. This method proceeds as follows: first, we solve the BCC (Banker-Charnes-Cooper) model and find the returns-to-scale of BCC-efficient DMUs and a reference set to each BCC-inefficient DMU. We can then decide the local returns-to-scale characteristics of each BCC-inefficient DMU by observing only the returns-to-scale characteristics of DMUs in their respective reference sets. No extra computation is required. We can apply this method to the output-oriented model and to the additive model as well.
- Journal of the Operations Research Society of Japan
Journal of the Operations Research Society of Japan 39(4), 604-613, 1996
The Operations Research Society of Japan