Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit
✍ Scribed by Kristiaan Kerstens; Philippe Vanden Eeckaut
- Publisher
- Elsevier Science
- Year
- 1999
- Tongue
- English
- Weight
- 144 KB
- Volume
- 113
- Category
- Article
- ISSN
- 0377-2217
No coin nor oath required. For personal study only.
✦ Synopsis
The purpose of this note is to de®ne a new and more general method to obtain qualitative information about returns to scale for individual observations. The traditional methods developed for estimating returns to scale on non-parametric deterministic reference technologies (Data Envelopment Analysis (DEA) models) are reviewed. A new and more general method that is suitable for all reference technologies is provided. Its usefulness is illustrated by considering variations on an existing non-convex production model, known as the Free Disposal Hull (FDH). When dierent returns to scale assumptions are introduced into the FDH, then previous methods for determining returns to scale do no longer apply.