ON THE CALCULATION OF THE SCALE ELASTICITY IN DEA MODELS

An issue in the multiple-output case within the literature on piecewis e linear frontier production functions has been how to determine the n ature of the scale properties. It is shown that knowledge of scale eff iciency does not permit calculation of scale elasticity or vice versa. For inefficient units there is a relationship between input-saving an d output-increasing efficiency measures through the average value of t he scale elasticity between the two different reference points on the frontier. A direct approach to determine the scale properties is to ca lculate the scale elasticity from the dual problem to the calculation of Farrell efficiency measures.