Journal of Productivity Analysis

, Volume 18, Issue 1, pp 5–22

Parametric Decomposition of a Generalized Malmquist Productivity Index

  • Luis Orea
Article

DOI: 10.1023/A:1015793325292

Cite this article as:
Orea, L. Journal of Productivity Analysis (2002) 18: 5. doi:10.1023/A:1015793325292

Abstract

This paper provides a parametric decomposition of a generalized Malmquist productivity index which takes into account scale economies. Unlike Balk (2001), the contribution of scale economies to productivity change is evaluated without recourse to scale efficiency measures, which are neither bounded for globally increasing, decreasing, or constant returns to scale technologies nor for ray-homogeneous technologies. An empirical application using panel data from Spanish savings banks is included. This application shows the advantages of the suggested method compared to Balk's approach. The results show an increase of total factor productivity which can be mainly attributed to technical progress and the positive effect of returns to scale.

Malmquist productivity index scale efficiency translog distance functions 

Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Luis Orea
    • 1
  1. 1.Department of EconomicsUniversity of OviedoOviedoSpain

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