It calculates the difference in technical efficiency when a firm operates under constant returns to scale (CRS) and
variable returns to scale (VRS).18 The difference in both defines inefficiency in that particular DMUs operations.19
The application of output-oriented Data Envelopment Approach (DEA) is made under the condition of
variable returns to scale. The results show the absolute dominance of leading private banks, viz.
This study reflects the safety performance of a state under the
variable returns to scale. The SE indicates the ability of the model to select the optimal scale under the
variable returns to scale.
In this study, the input-oriented
variable returns to scale (VRS) model is applied for getting the TE scores in the first stage because constant returns to scale (CRS) can be employed where industries or firms operate at their optimal scale.
The average
variable returns to scale (VRS) technical efficiency scores were 63%, 64%, 78%, 78% and 88% respectively during the review period.
The second part analyses the technical efficiency (
Variable Returns to Scale) using the three output models.
Types of efficiency with assumption of
variable returns to scale:
In this regard, this research presented an approach for analyzing DEA model with
variable returns to scale, BCC, in the circumstances that data uncertainty are displayed in the form of intuitionistic fuzzy sets.
Here the nature of
variable returns to scale is got by the increased limited term of [K.summation over (k=1)] [z.sub.k] = 1.
The output-oriented DEA model with
variable returns to scale can be written as:
Assuming that there are N firms which produce a single output using m different inputs and the ith firm unit produces [y.sub.i] units of output applying x[k.sub.i] units of kth inputs, the
variable returns to scale. The following model is a DEA Model for Technical Efficiency of the Branch studied: