Malmquist Productivity Index Decompositions: A Unifying Framework

José Zofío

No 2006/12, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: In two widely cited but unpublished working papers, Simar and Wilson (1998) and Zofío and Lovell (1998) proposed an alternative decomposition of the Malmquist Productivity Index, which retained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

Keywords: Productivity Change; Malmquist Indices; Distance Functions (search for similar items in EconPapers)
JEL-codes: C43 D24 O47 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2006-12
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.uam.es/departamentos/economicas/analeco ... a/mimeo/wp200612.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp200612.pdf [307 Moved Temporarily]--> https://www.uam.es/departamentos/economicas/analecon/especifica/mimeo/wp200612.pdf [301 Moved Permanently]--> https://www.uam.es/Economicas/AnalisisEconomicoTeoriaHistoria/1234888140248.htm/especifica/mimeo/wp200612.pdf)

Related works:
Journal Article: Malmquist productivity index decompositions: a unifying framework (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uam:wpaper:200612

Access Statistics for this paper

More papers in Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History) Contact information at EDIRC.
Bibliographic data for series maintained by Andrés Maroto-Sánchez ( this e-mail address is bad, please contact ).