Reference Technology Sets, Free Disposal Hulls and Productivity Decompositions

Walter Diewert and Kevin Fox

Economics working papers from Vancouver School of Economics

Abstract: Diewert and Fox (2013) proposed decompositions of a Malmquist-type productivity index into explanatory factors, with a focus on extracting technical progress, technical efficiency change and returns to scale components. A major problem with their decompositions is that it may be difficult to determine the appropriate reference technologies. Using relatively unrestrictive regularity conditions, the paper develops a data envelopment type approach for decomposing productivity growth for a panel of production units into explanatory factors based on the Free Disposal Hull methods pioneered by Tulkens and his co-authors.

Keywords: Productivity indexes; Free Disposal Hulls; technical efficiency; technical progress; returns to scale; nonparametric approaches to production theory (search for similar items in EconPapers)
Pages: 11 pages
Date: 2013-09-18, Revised 2013-09-18
New Economics Papers: this item is included in nep-eff
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Journal Article: Reference technology sets, Free Disposal Hulls and productivity decompositions (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ubc:bricol:erwin_diewert-2013-40

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