An expanded decomposition of the Luenberger productivity indicator with an application to the Chinese healthcare sector

Jean-Philippe Boussemart, Gary Ferrier, Hervé Leleu and Zhiyang Shen

Omega, 2020, vol. 91, issue C

Abstract: The objective of this research is to combine productivity analysis at the “firm-level” and the “industry-level” so that a novel, fuller decomposition of the sources of productivity change can be undertaken. Productivity change is decomposed into technological progress, technical, mix, and scale efficiency effects. Specifically, our decomposition allows us to capture changes in productivity due to the reallocation of inputs or outputs across productive units. In practice, such reallocation might take place across plants operated by the same firm, across regions within a country, or via mergers and acquisitions. The new decomposition of the aggregate Luenberger productivity indicator is illustrated using data at both the provincial and regional levels for China's healthcare sector over the period 2009–2014. Our results indicate that the growth of the aggregate Luenberger productivity indicator varied across both time and regions. We find that China's regional productivity growth in healthcare was primarily driven by technological progress, while the contributions of the other components of productivity change were smaller and more varied across regions.

Keywords: Luenberger productivity indicator; Chinese healthcare; Structural efficiency; Scale efficiency; Mix efficiency (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030504831731160X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: An expanded decomposition of the Luenberger productivity indicator with an application to the Chinese healthcare sector (2020)
Working Paper: An Expanded Decomposition of the Luenberger Productivity Indicator with an Application to the Chinese Healthcare Sector (2017)
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:eee:jomega:v:91:y:2020:i:c:s030504831731160x

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2018.11.019

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().