The Malmquist productivity index and plant capacity utilisation

Bruno De Borger and Kristiaan Kerstens

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: This note proposes a new decomposition of the Malmquist productivity index to account for changes in plant capacity utilisation. Using a primal, non-parametric specification of technology, the Malmquist index is decomposed into technical efficiency change, variations in plant capacity utilisation, and frontier shifts. It provides an alternative to the available methods to incorporate capacity utilisation changes in measures of productivity change. The latter are based upon parametric (and, in many cases, dual) technology specifications; moreover, they typically do not allow for technical inefficiency.

Keywords: Productivity; Capacity utilisation (search for similar items in EconPapers)
JEL-codes: C61 D24 (search for similar items in EconPapers)
Pages: 11 pages
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Citations: View citations in EconPapers (22)

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Related works:
Journal Article: The Malmquist Productivity Index and Plant Capacity Utilization (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:2000020

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