4.7 Article

A simple derivation of scale elasticity in data envelopment analysis

Journal

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 197, Issue 1, Pages 149-153

Publisher

ELSEVIER SCIENCE BV
DOI: 10.1016/j.ejor.2008.06.015

Keywords

Data envelopment analysis; Scale elasticity; Directional derivative

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In this paper, we Suggest a simple derivation of the formulae for the scale elasticity in the variable returns-to-scale technology as used in data envelopment analysis. Our development is consistent with the existing literature but the proof is much shorter and applies to the general case without any simplifying conditions. (C) 2008 Elsevier B.V. All rights reserved.

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