We present a unifying linear programming approach to the calculation of various directional derivatives for a very large class of production frontiers of data envelopment analysis (DEA). Special cases of this include different marginal rates, the scale elasticity and a spectrum of partial and mixed elasticity measures. Our development applies to any polyhedral production technology including, to name a few, the conventional variable and constant returns-to-scale DEA technologies, their extensions with weight restrictions, technolo
gies with weakly disposable undesirable outputs and network DEA models. Furthermore, our development provides a general method for the characterization of returns to scale (RTS) in any polyhedral technology.
The new approach effectively removes the need to develop bespoke models for the RTS characterization and calculation of marginal rates and elasticity measures for each particular technology.
History
School
Business and Economics
Department
Business
Published in
Operations Research
Volume
64
Issue
1
Pages
ii-iv, 1-272
Citation
PODINOVSKI, V.V., 2016. Marginal values and returns to scale for nonparametric production frontiers. Operations Research, 64(1), pp. 236-250.
This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/
Acceptance date
2015-10-01
Publication date
2016-01-11
Notes
This paper was accepted for publication in the journal Operations Research and the definitive published version is available at http://dx.doi.org/10.1287/opre.2015.1457.