A Resource Allocation Mode Based on DEA Models and Elasticity Analysis∗

This paper proposes a new resource allocation mode based on DEA models and elasticity analysis for a certain kind of resource allocation problems. It takes into account both the relative efficiency and the returns-to-scale of the decision making units. The decision maker can adopt it to comprehensively evaluate the departments’ production capacity and their potential production capacity. At last, this paper applies this mode into the single input and single output case. The results show that it can reflect the returns-to-scale more precisely than before.