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Malmquist productivity index decompositions: a unifying framework

[Zeitschriftenartikel]

Zofio, Jose L.

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Abstract In two widely cited but unpublished working papers, Simar and Wilson (1998) and Zofío and Lovell (1998) proposed an alternative decomposition of the Malmquist Productivity Index, which retained what seemed to be the strongholds of previous proposals with regard to the contribution of technological and efficiency change to productivity change. Namely, a technical change term with regard to the best practice (VRS) technology which is to be found in Ray and Desli (1997) and a scale efficiency change term that illustrates a firm’s situation with regard to optimal scale (benchmark technology), Färe, Grosskopf, Norris and Zhang (1994). Attaining this objective required the introduction of an additional term in the Malmquist Productivity Index decomposition, which would reflect the scale bias of technical change. It is our objective to provide economic rationale for this term within a theory of production context, the existing decompositions and recent articles that further elaborate on this issue. The ideas are illustrated using productivity trends in 17 OECD countries.
Klassifikation Volkswirtschaftslehre; Wirtschaftsstatistik, Ökonometrie, Wirtschaftsinformatik
Freie Schlagwörter Productivity Change; Malmquist Indices; Distance Functions
Sprache Dokument Englisch
Publikationsjahr 2007
Seitenangabe S. 2371-2387
Zeitschriftentitel Applied Economics, 39 (2007) 18
DOI http://dx.doi.org/10.1080/00036840600606260
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)
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