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Returns to scale in multiplicative models in data envelopment analysis

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  • M. Zarepisheh
  • E. Khorram
  • G. Jahanshahloo

Abstract

One class of models introduced in DEA is called multiplicative models, in which, as shown by Banker and Maindiratta (Manag. Sci. 32:126–135, 1986 ), the piecewise linear frontiers usually employed in DEA are replaced by a frontier that is piecewise Cobb-Douglas(=log linear). Banker and Maindiratta (Manag. Sci. 32:126–135, 1986 ) introduced a model to identify the most productive scale size pattern, and Banker et al. (Eur. J. Oper. Res. 154:345–362, 2004 ) presented a two-stage method for the identification of returns to scale (RTS) in multiplicative models. In this paper it is shown that both the RTS situation and the MPSS pattern could be determined by a single model in one step. The new method is important in the computational point of view. Copyright Springer Science+Business Media, LLC 2010

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  • M. Zarepisheh & E. Khorram & G. Jahanshahloo, 2010. "Returns to scale in multiplicative models in data envelopment analysis," Annals of Operations Research, Springer, vol. 173(1), pages 195-206, January.
    • Handle: RePEc:spr:annopr:v:173:y:2010:i:1:p:195-206:10.1007/s10479-009-0537-0
    DOI: 10.1007/s10479-009-0537-0
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    1. Banker, Rajiv D. & Thrall, R. M., 1992. "Estimation of returns to scale using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 62(1), pages 74-84, October.
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    6. Charnes, A. & Cooper, W. W. & Seiford, L. & Stutz, J., 1982. "A multiplicative model for efficiency analysis," Socio-Economic Planning Sciences, Elsevier, vol. 16(5), pages 223-224.
    7. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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