DEA Duality on Returns to Scale (RTS) in Production and Cost Analyses: An Occurrence of Multiple Solutions and Differences Between Production-Based and Cost-Based RTS Estimates

Abstract

This article discusses the concept of RTS (Returns To Scale) in the framework of DEA (Data Envelopment Analysis) production and cost analyses, focusing on an occurrence of multiple solutions and how to deal with such a difficulty. Dual relationships between production-based and cost-based RTS estimates are also theoretically discussed in this study.

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