This chapter discusses returns to scale (RTS) in data envelopment analysis (DEA). The BCC and CCR models are treated in input oriented forms while the multiplicative model is treated in output oriented form. (This distinction is not pertinent for the additive model which simultaneously maximizes outputs and minimizes inputs in the sense of a vector optimization.) Quantitative estimates in the f...

Given the rapid development of the banking sector, it is reasonable to expect that the performance of banks has become the centre of attention among bank managers, stakeholders, policy makers, and regulators. In order to maximizing the share-holders’ satisfactory level, two bank efficiency measurement approaches, i.e. the production approach and the user cost approach, which are financial evalu...

This study presents an evaluation of the relative efficiency of sixteen container ports in Sub-Sahara Africa using three DEA models namely CCR, BCC and Super-Efficiency over the year 2012. The CCR and BCC models are used to estimate the technical and scale efficiency while the super-efficiency technique provides a ranking of efficient ports. The efficiency results indicate that on average the i...

We consider the allocation of a limited budget to a set of activities or investments in order to maximize return from investment. In a number of practical contexts (e.g., advertising), the return from investment in an activity is effectively modeled using an S-curve, where increasing returns to scale exist at small investment levels, and decreasing returns to scale occur at high investment leve...

in this study, energy consumption pattern, efficiency and the percentage of saved energy and inputs of poultry production farms in isfahan, nain and najafabad townships with different capacities were evaluated. the average of net energy gain per 1000 bird for capacities less than 10, 10-30 and more than 30 thousand pieces was calculated as -143.66, -129.58 and -94.99 gj/1000 bird, respectively....

The extent to which there are aggregate returns to scale at the level of aggregate production has important implications both for the types of shocks generating business cycles and for optimal policy. However, prior attempts to measure the extent of these returns using instrumental variable techniques have yielded quite imprecise estimates. In this article, we show that the production shocks im...

data envelopment analysis (dea) is a non-parametric method for evaluating the relative technical efficiency for each member of a set of peer decision making units (dmus) with multiple inputs and multiple outputs. the original dea models use positive input and output variables that are measured on a ratio scale, but these models do not apply to the variables in which interval scale data can appe...