POn Fisher Aggregation of Multi-factor Productivity Indexes

Rolf Färe () and Valentin Zelenyuk
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Rolf Färe: Department of Economics, Oregon State University and Department of Agricultural and Resource Economics, University of Maryland, USA

No WP082020, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: The goal of this paper is to investigate the question of importance of Fisher aggregation of the Paasche and Laspeyres versions of Malmquist quantity and productivity indexes from both theoretical and empirical perspectives. We discuss existing justification and provide an alternative theoretical justification based on results from functional equations literature. We also use real data (from Kumar and Russell (2002, American Economic Review)) to illustrate how dramatic the differences in conclusions can be in practice depending on whether one employs Laspeyres or Paasche productivity indexes.

Keywords: Fisher; Laspeyres; Paasche; Malmquist; Productivity Indexes (search for similar items in EconPapers)
JEL-codes: D24 E22 E23 E24 O47 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-eff and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:qld:uqcepa:151

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