Journal of Productivity Analysis

, Volume 15, Issue 2, pp 79–94

A Parametric Distance Function Approach for Malmquist Productivity Index Estimation

  • Hugo J. Fuentes
  • Emili Grifell-Tatjé
  • Sergio Perelman
Article

DOI: 10.1023/A:1007852020847

Cite this article as:
Fuentes, H.J., Grifell-Tatjé, E. & Perelman, S. Journal of Productivity Analysis (2001) 15: 79. doi:10.1023/A:1007852020847

Abstract

Malmquistindexes of productivity are generally estimated using index numbertechniques or non-parametric frontier approaches. The aim ofthis paper is to show that Malmquist indexes can be estimatedin a similar way using parametric-deterministic or parametric-stochasticfrontier approaches. To allow a multi-output multi-input technologyand for technical change in production, we adopt an output distancefunction which is specified in a translog form. We then showthat using the estimated parameters, several radial distancefunctions can be calculated and combined in order to estimateand decompose the productivity index. Finally, this approachis applied to a panel of Spanish insurance companies. The mainresults confirm those generally obtained for financial services:very low rates of growth and technical change in spite of a rapidderegulation process and expansion of activity.

distance functionsMalmquist indexparametric frontierSpanish insurance

Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Hugo J. Fuentes
    • 1
  • Emili Grifell-Tatjé
    • 2
  • Sergio Perelman
    • 3
  1. 1.Campus Ciudad de MéxicoTecnologico de MonterreySpain
  2. 2.Departament d'Economia de l'EmpresaUniversitat Autonoma de Barcelonaspain
  3. 3.CREPP, Université de LiègeSpain