The constant returns to scale assumption maintained by neoclassical theorists for justifying the black-box structure of production technology in long run does not necessarily allow one to infer that there are no scale benefits available in its sub-technologies. Most of real-life production...

There are some specific features of the non-radial data envelopment analysis (DEA) models which cause some problems for the returns to scale measurement. In the scientific literature on DEA, some methods were suggested to deal with the returns to scale measurement in the non-radial DEA models....

In order to evaluate the performance of socially responsible investment (SRI) funds, we propose some models which use data envelopment analysis (DEA) and can be computed in all phases of the business cycle. These models focus on the most crucial elements of an investment in mutual funds.

This paper develops theory missing in the sizable literature that uses data envelopment analysis to construct return–risk ratios for investment funds. It explores the production possibility set of the investment funds to identify an appropriate form of returns to scale. It discusses what risk...

We show a new use of the efficient facets in DEA. Specifically, once we have identified all facets of the DEA technology, we are able to estimate the potential changes in some inputs and outputs, while fixing other inputs and outputs, ranges of simultaneous scale and mix changes in inputs and...

In the standard framework of data envelopment analysis (DEA) models, the returns to scale are fully characterized using the multiplier on the convexity constraint of inefficient decision making units (DMU) using the projection of the input–output vector on the frontier. In this note, we...

We discuss how to properly decompose economic efficiency when the underlying technology is non-homothetic using alternative allocative and technical efficiency criteria. We first show that only under the production of one output and assuming the particular case of constant returns to scale...

Under fairly general assumptions requiring neither a differentiable frontier nor a constant-returns-to-scale technology, this paper introduces a new definition of an optimal scale size based on the minimization of unit costs. The corresponding measure, average-cost efficiency, combines scale and...

To impose the law of one price (LoOP) restrictions, which state that all firms face the same input prices, Kuosmanen, Cherchye, and Sipiläinen (2006) developed the top-down and bottom-up approaches to maximizing the industry-level cost efficiency. However, the optimal input shadow prices...

This paper undertakes the full decomposition of dynamic cost inefficiency into technical, scale and allocative inefficiency based on the dynamic directional distance function. The empirical application estimates dynamic inefficiency in the Spanish construction industry before and during the...