Effect of uncontrollable factors on constant returns-to-scale production technologies
الموضوعات : International Journal of Data Envelopment Analysis
Reza Shahverdi
1
(Department of Mathematics, Qaemshahr Branch, Islamic Azad University, Qaemshahr, Iran)
Azam Ahmadzadeh
2
(Department of Mathematics,Sari Branch, Islamic Azad University Sari, Iran)
الکلمات المفتاحية: Uncontrollable factors, Controllable factors, Returns to scale, Data Envelopment Analysis,
ملخص المقالة :
This article discusses the effect of uncontrollable factors on constant returns-to-scale production technologies in data envelopment analysis(DEA). First we show that the Banker and Morey CRS technology is not convex and it is nevertheless a suitable reference technology for the assessment of scale efficiency and achieves model by the incorporation of variant inputs and outputs in data envelopment analysis. Second, we propose that if changes axiom returns to scale of production possibility set, model will secure variant another model with uncontrollable factors. Therefore returns to scale properties very depending on the manner in which uncontrollable factors are treated and approaches can be compared both theoretically and empirically.
[1] Charnes, A., Cooper, W.W., Rhodes, E.,(1978). Measuring the efficiency of decision making units. European Journal of Operational Research 2, 429-444.
[2] Banker, R.D.,(1984). Estimating most productive scale size using data envelopment analysis. European Journal of Operational Research 17, 35-44.
[3] Banker, R.D., Morey, R.C., (1986). Efficiency analysis for exogenously fixed inputs and outputs. Operations Research 34, 513-521.
