EconPapers    
Economics at your fingertips  
 

Measuring input-specific productivity change based on the principle of least action

Juan Aparicio (), Magdalena Kapelko (), Bernhard Mahlberg () and Jose L. Sainz-Pardo
Additional contact information
Jose L. Sainz-Pardo: University Miguel Hernandez

Journal of Productivity Analysis, 2017, vol. 47, issue 1, 17-31

Abstract: Abstract In for-profit organizations, efficiency and productivity measurement with reference to the potential for input-specific reductions is particularly important and has been the focus of interest in the recent literature. Different approaches can be formulated to measure and decompose input-specific productivity change over time. In this paper, we highlight some problems within existing approaches and propose a new methodology based on the Principle of Least Action. In particular, this model is operationalized in the form of a non-radial Luenberger productivity indicator based on the determination of the least distance to the strongly efficient frontier of the considered production possibility sets, which are estimated by non-parametric techniques based upon Data Envelopment Analysis. In our approach, overall productivity change is the sum of input-specific productivity changes. Overall productivity change and input-specific changes are broken up into indicators of efficiency change and technical change. This decomposition enables the researcher to quantify the contributions of each production factor to productivity change and its components. In this way, the drivers of productivity development are revealed. For illustration purposes the new approach is applied to a recent dataset of Polish dairy processing firms.

Keywords: Data envelopment analysis; Weighted additive model; Closest targets; Input-specific productivity change; C43; C61; Q12 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11123-016-0488-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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:kap:jproda:v:47:y:2017:i:1:d:10.1007_s11123-016-0488-9

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-10-10
Handle: RePEc:kap:jproda:v:47:y:2017:i:1:d:10.1007_s11123-016-0488-9