Scale and the Malmquist productivity index

David Lambert

Applied Economics Letters, 1999, vol. 6, issue 9, 593-596

Abstract: The Malmquist index has gained acceptability in empirical analyses of productivity in recent years. Some question has been raised concerning the index's ability to accurately portray productivity change in the presence of nonconstant returns to scale. This letter demonstrates that the index does accurately measure productivity change under an appropriate characterization of technology.

Date: 1999
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DOI: 10.1080/135048599352673

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