Information Technology and Returns to Scale

Returns to Information Technology Outsourcing

T study extends existing information technology (IT) productivity research by evaluating the contributions of spending in IT outsourcing using a production function framework and an economywide panel data set from 60 industries in the United States over the period from 1998 to 2006. Our results demonstrate that IT outsourcing has made a positive and economically meaningful contribution to indus...

Characterizing and finding full dimensional efficient facets of PPS with constant returns to scale technology

Creating Full Envelopment in Data Envelopment Analysis with Variable Returns to Scale Technology

In this paper, weak defining hyperplanes and the anchor points in DEA, as an important subset of the set of extreme efficient points of the Production Possibility Set (PPS), are used to construct unobserved DMUs and in the long run to improve the envelopment of all observed DMUs. There has been a surge of articles on improving envelopment in recent years. What has been done first is in Constant...

Two-stage Production Systems under Variable Returns to Scale Technology: A DEA Approach

Data envelopment analysis (DEA) is a non-parametric approach for performance analysis of decision making units (DMUs) which uses a set of inputs to produce a set of outputs without the need to consider internal operations of each unit. In recent years, there have been various studies dealt with two-stage production systems, i.e. systems which consume some inputs in their first stage to produce ...

Real-time decentralized information processing and returns to scale

We use a model of real-time decentralized information processing to understand how constraints on human information processing affect the returns to scale of organizations. We identify three informational (dis)economies of scale: diversification of heterogeneous risks (positive), sharing of information and of costs (positive), and crowding out of recent information due to information processing...