A variable returns to scale data envelopment analysis model for the joint determination of efficiencies with an example of the UK health service


Tsai, P.F. and Mar Molinero, C. (2002) A variable returns to scale data envelopment analysis model for the joint determination of efficiencies with an example of the UK health service. European Journal of Operational Research, 141, (1), 21-38. (doi:10.1016/S0377-2217(01)00223-5).

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Description/Abstract

A multi-activity DEA model for the joint determination of efficiencies with variable returns to scale is developed in this paper. The model contains an element of complexity that is not present in the previous DEA models for estimating returns to scale. It is found that apparent overall efficiency may hide scale inefficiency in individual activities. The model is applied to study the performance of individual specialties of National Health Services Trusts in the UK. It is argued that efficiency can be defined from two different perspectives: either as the most efficient internal allocation of resources, or the most efficient overall allocation of resources. This distinction becomes important when looking at the efficiency of parts of inefficient DMUs. The relationship between size and returns to scale is also explored. This method allows the determination of optimal size of an activity.

Item Type: Article
Additional Information: O.R. Applications
ISSNs: 0377-2217 (print)
Related URLs:
Keywords: data envelopment analysis, health, variable returns to scale, multiple activity organisations
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HA Statistics
Divisions: University Structure - Pre August 2011 > School of Management
ePrint ID: 35848
Date Deposited: 26 May 2006
Last Modified: 27 Mar 2014 18:22
Contact Email Address: camm@soton.ac.uk
URI: http://eprints.soton.ac.uk/id/eprint/35848

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