RTS consistency.pdf (599.02 kB)
Consistency of returns-to-scale characterizations of production frontiers with respect to model specification
journal contribution
posted on 2019-08-05, 13:08 authored by Victor PodinovskiVictor Podinovski, Tatiana Bouzdine-ChameevaReturns-to-scale (RTS) characterizations and the underlying notion of scale elasticity are important characteristics of production frontiers, in both parametric and nonparametric methodologies of efficiency and productivity analysis. In practical applications of these methodologies, the model of technology is often experimented with and modified before it is finalized, which involves, for example, a change of the data set, incorporation, exclusion or aggregation of inputs and outputs, or experimentation with the production assumptions, or axioms, on which the model is based. While it is well-known how such modifications of technology affect the efficiency scores, their effect on the RTS characterization of the production frontier has not been sufficiently explored in the literature. In this paper we obtain several general results that clarify this issue.
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School
- Business and Economics
Department
- Business
Published in
European Journal of Operational ResearchVolume
280Issue
2Pages
609 - 620Publisher
ElsevierVersion
- AM (Accepted Manuscript)
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© ElsevierPublisher statement
This paper was accepted for publication in the journal European Journal of Operational Research and the definitive published version is available at https://doi.org/10.1016/j.ejor.2019.07.043.Acceptance date
2019-07-20Publication date
2019-07-26Copyright date
2019ISSN
0377-2217Language
- en
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Prof Victor PodinovskiUsage metrics
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