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Measurement of Productivity Changes: Two Malmquist Index Approaches

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  • Rikard Althin

Abstract

The adjacent Malmquist productivity index is compared to the more recently suggested base period Malmquist productivity index. The two index approaches are evaluated with respect to base period dependency, the circular test, and with respect to a set of additional classical index tests. In addition it is shown that the base period index is independent of base period if and only if the marginal rate of substitution of inputs is independent of time. Finally, the adjacent and the base period indexes are put through a Monte Carlo (bootstrap) test to see if they yield similar results when applied to a panel of Swedish pharmacy data. Copyright Kluwer Academic Publishers 2001

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  • Rikard Althin, 2001. "Measurement of Productivity Changes: Two Malmquist Index Approaches," Journal of Productivity Analysis, Springer, vol. 16(2), pages 107-128, September.
    • Handle: RePEc:kap:jproda:v:16:y:2001:i:2:p:107-128
    DOI: 10.1023/A:1011682625976
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    1. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-593, September.
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    1. M C A S Portela & E Thanassoulis & A Horncastle & T Maugg, 2011. "Productivity change in the water industry in England and Wales: application of the meta-Malmquist index," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(12), pages 2173-2188, December.
    2. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    3. Aparicio, Juan & Ortiz, Lidia & Santín, Daniel, 2021. "Comparing group performance over time through the Luenberger productivity indicator: An application to school ownership in European countries," European Journal of Operational Research, Elsevier, vol. 294(2), pages 651-672.
    4. Briec, Walter & Kerstens, Kristiaan, 2009. "The Luenberger productivity indicator: An economic specification leading to infeasibilities," Economic Modelling, Elsevier, vol. 26(3), pages 597-600, May.
    5. Mizobuchi, Hideyuki, 2024. "Multiple directions for measuring biased technical change," Omega, Elsevier, vol. 127(C).
    6. Apostolos G. Christopoulos & Ioannis G. Dokas & Sofia Katsimardou & Konstantinos Vlachogiannatos, 2016. "Investigation of the relative efficiency for the Greek listed firms of the construction sector based on two DEA approaches for the period 2006–2012," Operational Research, Springer, vol. 16(3), pages 423-444, October.
    7. Reza Fallahnejad & Mohammad Reza Mozaffari & Peter Fernandes Wanke & Yong Tan, 2024. "Nash Bargaining Game Enhanced Global Malmquist Productivity Index for Cross-Productivity Index," Games, MDPI, vol. 15(1), pages 1-21, January.
    8. James Odeck, 2005. "Evaluating target achievements in the public sector: An application or a rare non-parametric DEA and Malmquist indices," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 171-190, May.
    9. Kim, Nam Hyok & He, Feng & Kwon, O Chol, 2023. "Combining common-weights DEA window with the Malmquist index: A case of China’s iron and steel industry," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    10. Aparicio, Juan & Santín, Daniel, 2022. "A New Malmquist Index Based on a Standard Technology for Measuring Total Factor Productivity Changes," MPRA Paper 114467, University Library of Munich, Germany.
    11. Barnabé Walheer, 2022. "Global Malmquist and cost Malmquist indexes for group comparison," Journal of Productivity Analysis, Springer, vol. 58(1), pages 75-93, August.
    12. Mette Asmild & Joseph Paradi & Vanita Aggarwall & Claire Schaffnit, 2004. "Combining DEA Window Analysis with the Malmquist Index Approach in a Study of the Canadian Banking Industry," Journal of Productivity Analysis, Springer, vol. 21(1), pages 67-89, January.
    13. Odeck, James, 2009. "Statistical precision of DEA and Malmquist indices: A bootstrap application to Norwegian grain producers," Omega, Elsevier, vol. 37(5), pages 1007-1017, October.
    14. Roberto Ezcurra & Belen Iraizoz & Pedro Pascual, 2009. "Total Factor Productivity, Efficiency, and Technological Change in the European Regions: A Nonparametric Approach," Environment and Planning A, , vol. 41(5), pages 1152-1170, May.
    15. Mohsen Afsharian & Heinz Ahn, 2015. "The overall Malmquist index: a new approach for measuring productivity changes over time," Annals of Operations Research, Springer, vol. 226(1), pages 1-27, March.
    16. Diego Prior, 2006. "Efficiency and total quality management in health care organizations: A dynamic frontier approach," Annals of Operations Research, Springer, vol. 145(1), pages 281-299, July.
    17. Aparicio, Juan & Santín, Daniel, 2024. "Global and local technical changes: A new decomposition of the Malmquist productivity index using virtual units," Economic Modelling, Elsevier, vol. 134(C).
    18. Jesús Pastor & C. Lovell, 2007. "Circularity of the Malmquist productivity index," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(3), pages 591-599, December.
    19. Zhou, Xun & Kuosmanen, Timo, 2020. "What drives decarbonization of new passenger cars?," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1043-1057.

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