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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...
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