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Stability of the classification of returns to scale in FDH models

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  • Soleimani-damaneh, M.
  • Mostafaee, A.

Abstract

This paper deals with the estimation of returns to scale (RTS) in free disposal hull (FDH) models and provides some stability intervals for preserving the RTS classification. It has been shown that the proposed stability intervals can be obtained via a polynomial-time algorithm based on the calculation of certain ratios of inputs and outputs, without solving any mathematical programming problem. The results of the study have been proved via some lemmas and theorems and have been illustrated by numerical examples and a real application.

Suggested Citation

  • Soleimani-damaneh, M. & Mostafaee, A., 2009. "Stability of the classification of returns to scale in FDH models," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1223-1228, August.
    • Handle: RePEc:eee:ejores:v:196:y:2009:i:3:p:1223-1228
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    1. Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1999. "Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit," European Journal of Operational Research, Elsevier, vol. 113(1), pages 206-214, February.
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    12. Zarepisheh, M. & Soleimani-damaneh, M., 2008. "Global variation of outputs with respect to the variation of inputs in performance analysis; generalized RTS," European Journal of Operational Research, Elsevier, vol. 186(2), pages 786-800, April.
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    Cited by:

    1. Hien Thu Pham & Shino Takayama, 2017. "Revisiting the “Missing Middle”: Productivity Analysis," Discussion Papers Series 580, School of Economics, University of Queensland, Australia.
    2. Geraldo Souza & Eliane Gonçalves Gomes & Eliseu Roberto Alves, 2022. "Two-part fractional regression model with conditional FDH responses: an application to Brazilian agriculture," Annals of Operations Research, Springer, vol. 314(2), pages 393-409, July.
    3. Amin Mostafaee & Majid Soleimani-Damaneh, 2016. "Some Conditions for Characterizing Anchor Points," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(02), pages 1-17, April.
    4. Cesaroni, Giovanni & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2017. "Global and local scale characteristics in convex and nonconvex nonparametric technologies: A first empirical exploration," European Journal of Operational Research, Elsevier, vol. 259(2), pages 576-586.
    5. Farzaneh Asadi & Sohrab Kordrostami & Alireza Amirteimoori & Morteza Bazrafshan, 2023. "Inverse data envelopment analysis without convexity: double frontiers," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 46(1), pages 335-354, June.
    6. Tavakoli, Ibrahim M. & Mostafaee, Amin, 2019. "Free disposal hull efficiency scores of units with network structures," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1027-1036.
    7. Adel Hatami-Marbini & Zahra Ghelej Beigi & Jens Leth Hougaard & Kobra Gholami, 2014. "Estimating Returns to Scale in Imprecise Data Envelopment Analysis," MSAP Working Paper Series 07_2014, University of Copenhagen, Department of Food and Resource Economics.
    8. Soleimani-damaneh, Majid & Mostafaee, Amin, 2015. "Identification of the anchor points in FDH models," European Journal of Operational Research, Elsevier, vol. 246(3), pages 936-943.

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