Closed form of the response function in FDH technologies: Theory, computation and application
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Response function (RF), which gives the value of maximum feasible outputs in response to changing the inputs, has a crucial role in performance analysis and scale elasticity measurement. In this paper, a polynomial-time algorithm is provided which is able to obtain the closed form of the RF under (nonconvex) FDH productions technologies. Finite convergence of the presented algorithm is proved; and it is established that the algorithm is polynomial-time from a complexity standpoint. Moreover, an application of the proposed procedure with real-world data accompanying some experiment-based computational discussions are given.
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2014 ◽
Vol 61
(1)
◽
pp. 51-78
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2002 ◽
Vol 50
(8)
◽
pp. 1935-1941
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