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Mixed partial elasticities in constant returns-to-scale production technologies

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  • Atici, Kazim Baris
  • Podinovski, Victor V.

Abstract

Recently, Podinovski and Førsund (2010) developed a linear programming approach to the analysis and calculation of a class of mixed partial elasticity measures in variable returns-to-scale (VRS) production technologies. In the current paper, we extend their approach to the constant returns-to-scale (CRS) technologies and formulate linear programs required for the computation of elasticity measures. Among other results obtained in this paper, we prove a new result, valid in both VRS and CRS technologies, that allows us to identify the reason why the corresponding elasticity measure is undefined at the unit. This removes the need for a preliminary sorting of the units into those units where the elasticity measure applies and those where it does not.

Suggested Citation

  • Atici, Kazim Baris & Podinovski, Victor V., 2012. "Mixed partial elasticities in constant returns-to-scale production technologies," European Journal of Operational Research, Elsevier, vol. 220(1), pages 262-269.
    • Handle: RePEc:eee:ejores:v:220:y:2012:i:1:p:262-269
    DOI: 10.1016/j.ejor.2012.01.034
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    1. Victor V. Podinovski & Finn R. Førsund, 2010. "Differential Characteristics of Efficient Frontiers in Data Envelopment Analysis," Operations Research, INFORMS, vol. 58(6), pages 1743-1754, December.
    2. Petros Hadjicostas & Andreas Soteriou, 2010. "Erratum to: Different orders of one-sided scale elasticities in multi-output production," Journal of Productivity Analysis, Springer, vol. 34(2), pages 181-181, October.
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    6. Petros Hadjicostas & Andreas Soteriou, 2010. "Different orders of one-sided scale elasticities in multi-output production," Journal of Productivity Analysis, Springer, vol. 33(2), pages 147-167, April.
    7. V E Krivonozhko & O B Utkin & A V Volodin & I A Sablin & M Patrin, 2004. "Constructions of economic functions and calculations of marginal rates in DEA using parametric optimization methods," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(10), pages 1049-1058, October.
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    14. Podinovski, Victor V. & Førsund, Finn R. & Krivonozhko, Vladimir E., 2009. "A simple derivation of scale elasticity in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 197(1), pages 149-153, August.
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    1. Victor V. Podinovski & Robert G. Chambers & Kazim Baris Atici & Iryna D. Deineko, 2016. "Marginal Values and Returns to Scale for Nonparametric Production Frontiers," Operations Research, INFORMS, vol. 64(1), pages 236-250, February.
    2. Sahoo, Biresh K & Khoveyni, Mohammad & Eslami, Robabeh & Chaudhury, Pradipta, 2016. "Returns to scale and most productive scale size in DEA with negative data," European Journal of Operational Research, Elsevier, vol. 255(2), pages 545-558.
    3. Hennebel, Veerle & Simper, Richard & Verschelde, Marijn, 2017. "Is there a prison size dilemma? An empirical analysis of output-specific economies of scale," European Journal of Operational Research, Elsevier, vol. 262(1), pages 306-321.
    4. Atici, Kazim Baris & Podinovski, Victor V., 2015. "Using data envelopment analysis for the assessment of technical efficiency of units with different specialisations: An application to agriculture," Omega, Elsevier, vol. 54(C), pages 72-83.
    5. Martini, Gianmaria & Scotti, Davide & Viola, Domenico & Vittadini, Giorgio, 2020. "Persistent and temporary inefficiency in airport cost function: An application to Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 999-1019.
    6. Podinovski, Victor V., 2017. "Returns to scale in convex production technologies," European Journal of Operational Research, Elsevier, vol. 258(3), pages 970-982.
    7. Podinovski, Victor V., 2019. "Direct estimation of marginal characteristics of nonparametric production frontiers in the presence of undesirable outputs," European Journal of Operational Research, Elsevier, vol. 279(1), pages 258-276.
    8. Mahdi Mirjaberi & Reza Kazemi Matin, 2016. "On the Calculation of Directional Scale Elasticity in Data Envelopment Analysis," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(04), pages 1-17, August.

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