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Scale Efficiency and Scale Elasticity in DEA-models - A Bootstrapping Approach

Author

Listed:
  • Löthgren, Mickael

    (Department of Economic Statistics)

  • Tambour, Magnus

    (Centre for Health Economics)

Abstract

This paper presents and applies different approaches to estimate returns to scale in multiple-input muliple-output technologies. Scale efficiency gives quantitative information of scale characteristics. A primal based approach to estimate the scale elasticity is proposed as an alternative to the earlier established dual based hyperplane approach. The different scale measures are defined in terms of technical efficiency measures, that can be estimated byb Data Envelopment Analysis (DEA). The DEA- method is inherently deterministic and hence offers no measures of uncertainty in the returns to scale estimates. Conditional on the sample at hand, the bootstrap offers a possibility to perform formal statistical hypotheses testing of the scale efficiencies and elasticities. Empirical evidence from (public) eye-care departments in Sweden from the years 1992 and 1993 is presented.

Suggested Citation

  • Löthgren, Mickael & Tambour, Magnus, 1996. "Scale Efficiency and Scale Elasticity in DEA-models - A Bootstrapping Approach," SSE/EFI Working Paper Series in Economics and Finance 91, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0091
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    More about this item

    Keywords

    DEA; scale efficiency; bootstrap; eye-care services;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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