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Productivity Measurement In Radial Dea Models With Multiple Constant Inputs

Giannis Karagiannis and C. A. K. Lovell
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C. A. K. Lovell: CEPA - School of Economics, The University of Queensland,

No WP082013, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: We consider productivity measurement based on radial DEA models with multiple constant inputs. We show that in this case the Malmquist and the Hicks- Moorsteen productivity indices coincide and are multiplicatively complete, the choice of orientation for the measurement of productivity change does not matter, and there is a unique decomposition of productivity change containing three independent sources, namely technical efficiency change and the magnitude and output bias components of technical change. We also show that an aggregate productivity index is given by the simple arithmetic mean of individual productivity indices.

New Economics Papers: this item is included in nep-eff
Date: 2013-12
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