A simple derivation of scale elasticity in data envelopment analysis |
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| Authors: | Victor V. Podinovski,Finn R. Fø rsund,Vladimir E. Krivonozhko |
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| Affiliation: | 1. Warwick Business School, University of Warwick, Coventry, CV4 7AL, UK;2. Department of Economics, University of Oslo, Box 1095, 0317 Blindern, Oslo, Norway;3. Institute for Systems Analysis, Moscow 101000, Russia |
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| Abstract: | 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. |
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| Keywords: | Data envelopment analysis Scale elasticity Directional derivative |
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