What will be the interpretation of CRS efficiency and VRS efficiency?

25 May 2020 1 3K Report

Suppose, in case of input-oriented approach, for one firm has the CRS efficiency is 0.8682 and the VRS efficiency score is 0.96652. What we can say by both of these two results?

Scale efficiency = 0.8982. What we can understand from this?

Md Azizur Rahman

In general, for CRS and VRS "how far the value from unit value (1.000)".... closer to 1.000 the high the firm efficiency...

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