New study reveals different types of return to scale in production.
The article explores different types of returns to scale in Data Envelopment Analysis (DEA). The researchers found that while the classical DEA model assumes constant returns to scale, a new concave upward efficient frontier can also represent viable production. This new frontier suggests that smaller production scales can increase productivity but may not be as efficient as larger units. This finding expands our understanding of how efficiency can vary in different decision-making units.