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Returns to Scale in DEA

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Handbook on Data Envelopment Analysis

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 71))

Abstract

This chapter discusses returns to scale (RTS) in data envelopment analysis (DEA). The BCC and CCR models are treated in input oriented forms while the multiplicative model is treated in output oriented form. (This distinction is not pertinent for the additive model which simultaneously maximizes outputs and minimizes inputs in the sense of a vector optimization.) Quantitative estimates in the form of scale elasticities are treated in the context of multiplicative models, but the bulk of the discussion is confined to qualitative characterizations such as whether RTS is identified as increasing, decreasing or constant. This is discussed for each type of model and relations between the results for the different models are established. The opening section describes and delimits approaches to be examined. The concluding section outlines further opportunities for research and an Appendix discusses other approaches in DEA treatment of RTS.

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Author information

Authors and Affiliations

  1. School of Management, University of Texas at Dallas, Richardson, TX, 75088-0688, USA

    Rajiv D. Banker

  2. Red McCombs School of Business, University of Texas at Austin, Austin, TX, 78712, USA

    William W. Cooper

  3. Department of Industrial and Operations Engineering, University of Michigan at Ann Arbor, Ann Arbor, MI, 48102, USA

    Lawrence M. Seiford

  4. Department of Management, Worcester Polytechnic Institute, Worcester, MA, 01609, USA

    Joe Zhu

Authors
  1. Rajiv D. Banker
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  2. William W. Cooper
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  3. Lawrence M. Seiford
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  4. Joe Zhu
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Editor information

Editors and Affiliations

  1. University of Texas at Austin, USA

    William W. Cooper

  2. University of Michigan at Ann Arbor, USA

    Lawrence M. Seiford

  3. Worcester Polytechnic Institute, USA

    Joe Zhu

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© 2004 Kluwer Academic Publishers

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Banker, R.D., Cooper, W.W., Seiford, L.M., Zhu, J. (2004). Returns to Scale in DEA. In: Cooper, W.W., Seiford, L.M., Zhu, J. (eds) Handbook on Data Envelopment Analysis. International Series in Operations Research & Management Science, vol 71. Springer, Boston, MA. https://doi.org/10.1007/1-4020-7798-X_2

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  • DOI: https://doi.org/10.1007/1-4020-7798-X_2

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4020-7797-5

  • Online ISBN: 978-1-4020-7798-2

  • eBook Packages: Springer Book Archive

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