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Aggregation of Productivity Indices: The Allocative Efficiency Correction

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  • Thijs Raa

Abstract

Aggregation of productivity indices is known to be consistent under very restrictive conditions only. This paper quantifies the aggregation inconsistency. Copyright Springer Science+Business Media, Inc. 2005

Suggested Citation

  • Thijs Raa, 2005. "Aggregation of Productivity Indices: The Allocative Efficiency Correction," Journal of Productivity Analysis, Springer, vol. 24(2), pages 203-209, October.
  • Handle: RePEc:kap:jproda:v:24:y:2005:i:2:p:203-209
    DOI: 10.1007/s11123-005-4705-1
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    Citations

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    Cited by:

    1. Thijs ten Raa & Pierre Mohnen, 2009. "Competition and Performance: The Different Roles of Capital and Labor," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 20, pages 371-388, World Scientific Publishing Co. Pte. Ltd..
    2. Pachkova, Elena V., 2009. "Restricted reallocation of resources," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1049-1057, August.
    3. Badunenko, Oleg & Fritsch, Michael & Stephan, Andreas, 2008. "Allocative efficiency measurement revisited--Do we really need input prices?," Economic Modelling, Elsevier, vol. 25(5), pages 1093-1109, September.
    4. Ten Raa, T., 2006. "The Theory of Benchmarking and the Measurement of Industrial Organization," Other publications TiSEM df28587f-03e6-42b9-ae40-6, Tilburg University, School of Economics and Management.
    5. Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    6. Kuosmanen, Timo & Kortelainen, Mika & Sipiläinen, Timo & Cherchye, Laurens, 2010. "Firm and industry level profit efficiency analysis using absolute and uniform shadow prices," European Journal of Operational Research, Elsevier, vol. 202(2), pages 584-594, April.
    7. Arnaud Abad & Rabaozafy Louisa Andriamasy & Walter Briec, 2018. "Surplus measures and luenberger Hicks–Moorsteen productivity indicator," Journal of Economics, Springer, vol. 125(3), pages 279-308, November.
    8. Avninder Gill, 2011. "Measurement and Comparison of Productivity Performance Under Fuzzy Imprecise Data," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 2(1), pages 19-32, April.
    9. Thijs Raa, 2011. "Benchmarking and industry performance," Journal of Productivity Analysis, Springer, vol. 36(3), pages 285-292, December.
    10. Bos, J.W.B. & van Santen, P.C. & Schilp, P., 2013. "The importance of reallocation for productivity growth: Evidence from European and US banking," Research Memorandum 056, Maastricht University, Graduate School of Business and Economics (GSBE).

    More about this item

    Keywords

    aggregation; productivity; allocative efficiency; O47; C43;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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