2017/07/05 by Reza Kazemi Matin, Kazemi Matin, Reza, Roza Aziz +3
Decision Sciences · Economics, Econometrics and Finance · #Aggregation #Data Envelopment Analysis (DEA) #Economic Growth and Productivity #Economic and Technological Innovation #Efficiency Analysis Using DEA #Industry #Input-oriented radial measure #Returns-to-scale (RTS) #Target setting
paper · doi:10.82521/ijo.2018.1018682
openalex publication_date 2017/07/05 · openalex created_date 2025/12/29 · openalex updated_date 2026/07/07
In production theory, it is necessary to be capable of predicting the production func- tion’s long-run behaviors. Hereof, returns to scale is a helpful concept. Returns to scale describes the reaction of a production function to the proportionally scaling all its input variables. In this regard, Data envelopment analysis (DEA) provides a com- prehensive framework for returns to scale evaluation. A sequence of attempts has been made on the subject of returns to scale in DEA literature which cause DEA to be ex- panded to widespread applications. Centralization of carried out studies in firm level, on one hand, and the importance of economical inter-operation in performance analysis in industry level, on the other hand, were the main motivation to start a new range of studies around identifying the return to scale in industry level. This paper collaborates interesting relations between firms and industry technology with performance analysis techniques to extract a relation between returns to scale status of firms and system-wide unit based on the reference set method.