TY - CHAP
T1 - Stochastic Scale Elasticity
AU - Amirteimoori, Alireza
AU - Sahoo, Biresh K.
AU - Charles, Vincent
AU - Mehdizadeh, Saber
N1 - Publisher Copyright:
© 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.
PY - 2022
Y1 - 2022
N2 - To analyze the performance of firms (decision-making units, DMUs) in the literature, several economic concepts such as economies of scale (returns to scale, RTS), economies of scope, marginal rates of technical substitutions, etc., have been used. Banker et al. (2004) studied RTS in different DEA models. In this chapter, however, we concentrate on determining and measuring RTS. Scale elasticity (SE) is a quantitative measure of the RTS characterization of the firms operating on the production frontier, which is used to determine improvement or deterioration in their productivities by resizing their scales of operation.
AB - To analyze the performance of firms (decision-making units, DMUs) in the literature, several economic concepts such as economies of scale (returns to scale, RTS), economies of scope, marginal rates of technical substitutions, etc., have been used. Banker et al. (2004) studied RTS in different DEA models. In this chapter, however, we concentrate on determining and measuring RTS. Scale elasticity (SE) is a quantitative measure of the RTS characterization of the firms operating on the production frontier, which is used to determine improvement or deterioration in their productivities by resizing their scales of operation.
UR - https://www.scopus.com/pages/publications/85121257495
U2 - 10.1007/978-3-030-89869-4_6
DO - 10.1007/978-3-030-89869-4_6
M3 - Chapter
AN - SCOPUS:85121257495
T3 - International Series in Operations Research and Management Science
SP - 119
EP - 145
BT - International Series in Operations Research and Management Science
PB - Springer
ER -