Returns to Scale in U.S. Production: Estimates and Implications

Characterization of efficient points of the production possibility set under variable returns to scale in DEA

  We suggest a method for finding the non-dominated points of the production possibility set (PPS) with variable returns to scale (VRS) technology in data envelopment analysis (DEA). We present a multiobjective linear programming (MOLP) problem whose feasible region is the same as the PPS under variable returns to scale for generating non-dominated points. We demonstrate that Pareto solutions o...

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 ...

Marginal Values and Returns to Scale for Nonparametric Production Frontiers

An input-oriented radial measure for returns to scale aggregation.

In production theory, it is necessary to be capable of predicting the production func- tion’s long-run behaviors. Hereof, returns to scale is a helpful concept. Returns to scale describes the reaction of a production function to the proportionally scaling all its input variables. In this regard, Data envelopment analysis (DEA) provides a com- prehensive framework for returns to scale evaluation...

Returns to Scale in Networks