Abstract
We propose a new scheme for measuring scale elasticity of production based on a new cost efficiency model developed in Tone (2002). Comparing our model with classical model we establish the superiority of our model over the latter based on the premise that the classical estimates of cost efficiency and scale elasticity can be illusory.
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Tone, K., Sahoo, B.K. Re-examining scale elasticity in DEA. Ann Oper Res 145, 69–87 (2006). https://doi.org/10.1007/s10479-006-0027-6
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DOI: https://doi.org/10.1007/s10479-006-0027-6