A simple derivation of scale elasticity in data envelopment analysis

In this paper, we suggest a simple derivation of the formulae for the scale elasticity in the variable returns-to-scale technology as used in data envelopment analysis. Our development is consistent with the existing literature but the proof is much shorter and applies to the general case without an...

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Bibliographic Details
Published in:European journal of operational research 2009-08, Vol.197 (1), p.149-153
Main Authors: Podinovski, Victor V., Førsund, Finn R., Krivonozhko, Vladimir E.
Format: Article
Language:English
Subjects:
Data envelopment analysis
Data envelopment analysis Scale elasticity Directional derivative
Directional derivative
Scale elasticity
Studies
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Summary:In this paper, we suggest a simple derivation of the formulae for the scale elasticity in the variable returns-to-scale technology as used in data envelopment analysis. Our development is consistent with the existing literature but the proof is much shorter and applies to the general case without any simplifying conditions.
ISSN:0377-2217
1872-6860
DOI:10.1016/j.ejor.2008.06.015