Dynamic concept of returns to scales and its characteristics on production frontier in intersection form

This paper gives a dynamic concept and a new non-parametric method for evaluating returns to scale(RTS) of economic units with multiple inputs and outputs.It is frequently noticed that when we increase the input of a decision making unit(DMU) with a certain status of RTS,different status of RTS is observed.For example,when we increase the input of a DMU with constant RTS under the traditional method,a decreasing RTS is often observed instead of the expected constant RTS.We thus define the RTS of each DMU in...