Incorporating ancillary measures of process and quality change into a superlative productivity index

Fixler D. and Zieschang K.D. (1992) Incorporating ancillary measures of process and quality change into a superlative productivity index. Journal of Productivity Analysis, 2 4: 245-267. doi:10.1007/BF00156469


Author Fixler D.
Zieschang K.D.
Title Incorporating ancillary measures of process and quality change into a superlative productivity index
Journal name Journal of Productivity Analysis   Check publisher's open access policy
ISSN 0895-562X
Publication date 1992
Sub-type Article (original research)
DOI 10.1007/BF00156469
Volume 2
Issue 4
Start page 245
End page 267
Total pages 23
Publisher Kluwer Academic Publishers
Subject 3301 Social Sciences (miscellaneous)
2002 Cultural Studies
1403 Econometrics
Abstract One of the persistent problems plaguing the measurement of productivity and output is accounting for changes in product quality. A similar problem arises in attempting to explain shifts in a production function using information on changes in the characteristics of the production process itself. We consider these problems under a behavioral model in which the firm chooses a profit-maximizing bundle of input/output/process characteristics as well as the profit maximizing levels of input and output. This view of quality change is similar to the endogenous design index advocated by Triplett [1983] for industrial prices and the endogenous quality indexes analyzed by Pollak [1983] for consumer prices. We show how a price-characteristics locus can be used to adjust the Tornqvist output- and input-oriented multifactor productivity indexes of Caves, Christensen and Diewert [1982] for changes in input, output and process characteristics. To show the applicability of the methodology to services, we apply the results in the framework of the commercial banking measurement of Fixler [1988] to measure the impact of bank branching on multifactor productivity.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Journal Article
Sub-type: Article (original research)
Collection: Scopus Import
 
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Created: Fri, 11 Mar 2016, 11:02:44 EST by Anthony Yeates