The improved BCC RTS method in data envelopment analysis

When estimating RTS (returns to scale) using the BCC RTS method in DEA (data envelopment analysis), there exist multiple optimal solutions which lead to error RTS estimation. This paper introduces the improved BCC RTS method for this problem. Given the existence of an optimal solution with u*₀ ≠ 0 in the BCC multiplier model, the existence of an optimal solution with u*₀ = 0 is the focus. A system of linear equality is constructed for the focus. And the corresponding 0-objective linear programming is also constructed to verify the feasibility of the system of linear equality. Therefore, RTS can be identified by the corresponding 0-objective linear programming and the obtained optimal solution in the BCC multiplier model.