A note on the choice of Malmquist productivity index and Malmquist total factor productivity index

George Halkos and Nickolaos Tzeremes

MPRA Paper from University Library of Munich, Germany

Abstract: This paper by analyzing the two popular methodologies of productivity measurement provides an example that illustrates the differences when adopting the two methodologies. Furthermore, under the restriction of constant returns to scale raises some methodological issues regarding the theory of productivity measurement using the Malmquist Productivity Index and Malmquist Total Factor Productivity Index. Furthermore by using an illustrative example under the restriction of constant returns to scale the study indicates that the two indexes produce similar results. However, the differences observed are determining the choice of the methodology adopted when measuring productivity.

Keywords: Productivity measurement; Malmquist Productivity Index; Malmquist Total Factor Productivity Index (search for similar items in EconPapers)
JEL-codes: C69 D24 I10 (search for similar items in EconPapers)
Date: 2006-09
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Citations: View citations in EconPapers (1)

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