Productivity measurement in radial DEA models with a single constant input

Giannis Karagiannis and C. Lovell

European Journal of Operational Research, 2016, vol. 251, issue 1, 323-328

Abstract: We consider productivity measurement based on radial DEA models with a single constant input. We show that in this case the Malmquist and the Hicks–Moorsteen productivity indices coincide and are multiplicatively complete, the choice of orientation of the Malmquist index for the measurement of productivity change does not matter, and there is a unique decomposition of productivity change containing two independent sources, namely technical efficiency change and technical change. Technical change decomposes in an infinite number of ways into a radial magnitude effect and an output bias effect. We also show that the aggregate productivity index is given by the geometric mean between any two periods of the simple arithmetic averages of the individual contemporaneous and mixed period distance functions.

Keywords: Malmquist and Hicks–Moorsteen productivity indices; Measurement; Decomposition; Aggregation (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:251:y:2016:i:1:p:323-328

DOI: 10.1016/j.ejor.2015.12.013

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