Scale Efficiency and Productivity Change

Bert Balk

Journal of Productivity Analysis, 2001, vol. 15, issue 3, 159-183

Abstract: Thefirst objective of this paper is to develop a generic measureof scale efficiency for a multiple-input multiple-output firm,using basic principles of modern production theory. The secondobjective is to combine measures of technological change, technicalefficiency change, and scale efficiency change into an encompassing(primal) measure of productivity change. This measure and itsdecomposition is compared to a number of recent proposals inorder to shed light on what seems to have become a controversialissue. The paper proceeds by developing an encompassing dualmeasure of productivity change. This dual measure is then appliedto panel data of a set of Dutch firms, continuing the empiricalwork of Balk (1998). It turns out that extending the Malmquistproductivity index with factors measuring scale efficiency changeand input mix change leads to appreciably different outcomes. Copyright Kluwer Academic Publishers 2001

Keywords: Scale efficiency (change); productivity change (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (154)

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DOI: 10.1023/A:1011117324278

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