The biennial Malmquist productivity change index

Pastor, Jesús T., Asmild, Mette and Lovell, C. A. Knox (2011) The biennial Malmquist productivity change index. Socio-Economic Planning Sciences, 45 1: 10-15. doi:10.1016/j.seps.2010.09.001

Author Pastor, Jesús T.
Asmild, Mette
Lovell, C. A. Knox
Title The biennial Malmquist productivity change index
Journal name Socio-Economic Planning Sciences   Check publisher's open access policy
ISSN 0038-0121
Publication date 2011-03-01
Sub-type Article (original research)
DOI 10.1016/j.seps.2010.09.001
Open Access Status Not yet assessed
Volume 45
Issue 1
Start page 10
End page 15
Total pages 6
Place of publication Kidlington, Oxford, United Kingdom
Publisher Pergamon
Language eng
Subject 1408 Strategy and Management
1803 Management Science and Operations Research
1804 Statistics, Probability and Uncertainty
2002 Economics and Econometrics
3305 Geography, Planning and Development
Abstract In this paper we introduce a new Malmquist productivity index that has three attractive features: it avoids linear programming infeasibilities under variable returns to scale, it allows for technical regress, and it does not need to be recomputed when a new time period is added to the data set. The proposed index is compared to both the adjacent Malmquist index and the global Malmquist index in an empirical example, which highlights the drawbacks of the existing indexes compared to the proposed biennial Malmquist index.Our results show that 13% of the observations in the data set may have to be ignored due to infeasibilities when decomposing the adjacent Malmquist index. Using only this reduced data set does at times lead to quite different results than those generated by applying the proposed biennial Malmquist index to the entire data set. The empirical example also shows that productivity change estimated between two time periods using the global Malmquist index change substantially when a third time period is added to the data set, whereas the proposed biennial Malmquist index is immune to this problem.
Keyword Infeasibilities
Malmquist productivity indices
Productivity change decompositions
Technical regress
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
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