GRIPS Policy Information Center Research Report : I-2003-0006 1 Indivisibilities and Economies of Scope in Data Envelopment Analysis ♣ Biresh K Sahoo, Kaoru Tone a a Corresponding author. National Graduate Institute for Policy Studies, 2-2 Wakamatsu-cho, Shinjuku-ku, Tokyo 162-8677, Japan E-mail: tone@grips.ac.jp Abstract This paper attempts to examine the data envelopment analysis (DEA) model of efficiency measurement from an economic perspective. We have discussed here the use of a new DEA model to show how the presence of process indivisibilities arising from task- specific production processes exhibits economies of scope. Key Words: Economies of scope; Indivisibilities; Multi-stage production; DEA. ♣ This research is fully supported by Grant-in-Aid for Scientific Research (C) Japan Society for the Promotion of Science.