A Sequential Malmquist-Luenberger Productivity Index

Dong-hyun Oh () and Almas Heshmati ()

No 200910, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: This study proposes an alternative methodology for measuring environmentally sensitive productivity growth. The rationale of this methodology is to consider the features of technology appropriately by excluding a spurious technical regress based on the macroeconomic perspective. In order to consider this condition and to develop an alternative index, a directional distance function and the concept of the successive sequential production possibility set are combined. With this combination, the conventional Malmquist-Luenberger productivity index is modified to give the alternative sequential environmentally sensitive productivity index. This proposed index is employed in measuring productivity growth and its decomposed components of OECD countries for the period 1970-2003. We distinguish two main empirical findings. First, even though the components of the conventional Malmquist-Luenberger productivity index and the proposed index are different, the developments of productivity are similar. Second, unlike in previous studies, the efficiency change is the main contributor to the earlier study period, whereas the effect of technical change has prevailed over time.

Keywords: efficiency change; environmentally sensitive productivity growth index; directional distance function; Malmquist-Luenberger productivity index; productivity; sequential production possibility set; technical change (search for similar items in EconPapers)
JEL-codes: C43 D24 D57 D61 Q56 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2009-03, Revised 2009-08
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://temep-repec.my-groups.de/DP-10.pdf First version, 2009 (application/pdf)

Related works:
Working Paper: A Sequential Malmquist-Luenberger Productivity Index (2009)
Working Paper: A Sequential Malmquist-Luenberger Productivity Index (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:200910

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