An investigation of returns to scale in data envelopment analysis
نویسندگان
چکیده
This paper discusses the determination of returns to scale (RTS) in data envelopment analysis (DEA). Three basic RTS methods and their modi®cations are reviewed and the equivalence between these dierent RTS methods is presented. The eect of multiple optimal DEA solutions on the RTS estimation is studied. It is shown that possible alternate optimal solutions only aect the estimation of RTS on DMUs which should be classi®ed as constant returns to scale (CRS). Modi®cations to the original RTS methods are developed to avoid the eects of multiple optimal DEA solutions on the RTS estimation. The advantages and disadvantages of these alternative RTS methods are presented so that a proper RTS method can be selected within the context of dierent applications. # 1998 Elsevier Science Ltd. All rights reserved.
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