This book deals with the method of data envelopment analysis that uses mathematical programming techniques to obtain measures of efficiency of individual forms from their observed input and output quantities. This permits setting up realistic input-output targets for the firms' managers

This chapter offers an overview of Data Envelopment Analysis as a nonparametric method of measuring efficiency in production. Special attention is devoted to alternative returns to scale assumptions about the technology and identifying the local nature of returns to scale at projections of an...