Affordable Access

Production technologies based on combined proportionality assumptions

Springer New York LLC
Publication Date
  • Hf Commerce
  • Hc Economic History And Conditions
  • H Social Sciences


The assumption of full proportionality is incorporated in the constant returns-to-scale (CRS) technology and allows for proportional scaling of inputs and outputs of production units. The assumption of selective proportionality was recently incorporated in the hybrid returns-to-scale (HRS) technology in which only a subset of outputs is proportional to a subset of inputs. In this paper we develop a production technology that exhibits both the full and selective proportionality at the same time. Real examples of such technology are pointed out. Subject to certain conditions, the DEA models based on this technology provide better discrimination than the CRS and HRS models.

There are no comments yet on this publication. Be the first to share your thoughts.