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Slacks-based measurement models for estimating returns to scale

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  • Jie Wu
  • Qingxian An

Abstract

Slacks-based measurement (SBM), as an important branch of data envelopment analysis (DEA) for evaluating the efficiency of decision making units (DMUs) was firstly proposed by Tone and has been well developed in different directions. Many models based on SBM have been built, such as SBM of super efficiency, SBM of network DEA, SBM of the worst-practise DEA and dynamic SBM. In this paper, we extend the SBM models in different returns to scale (RTS) and build a comprehensive SBM model. Based on the SBM models above, a new approach for estimating returns to scale of DMUs is proposed. This approach has a specific advantage that it can gain projection of inefficient observations from input-output orientation. At last, a numerical example demonstrates the process of estimating returns to scale.

Suggested Citation

  • Jie Wu & Qingxian An, 2013. "Slacks-based measurement models for estimating returns to scale," International Journal of Information and Decision Sciences, Inderscience Enterprises Ltd, vol. 5(1), pages 25-35.
    • Handle: RePEc:ids:ijidsc:v:5:y:2013:i:1:p:25-35
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    Cited by:

    1. Mohammad Mahdi Mousavi & Jamal Ouenniche, 2018. "Multi-criteria ranking of corporate distress prediction models: empirical evaluation and methodological contributions," Annals of Operations Research, Springer, vol. 271(2), pages 853-886, December.
    2. Shiu-Wan Hung & Chao-Liang Chang & Shu Ming Liu, 2019. "Innovation System Assessment Model for Sustainability Planning in Taiwan," Sustainability, MDPI, vol. 11(24), pages 1-24, December.
    3. Alirezaee, Mohammadreza & Hajinezhad, Ensie & Paradi, Joseph C., 2018. "Objective identification of technological returns to scale for data envelopment analysis models," European Journal of Operational Research, Elsevier, vol. 266(2), pages 678-688.

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