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: