Parametric Decomposition of a Generalized Malmquist Productivity Index
- Luis Orea
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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.
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- Parametric Decomposition of a Generalized Malmquist Productivity Index
Journal of Productivity Analysis
Volume 18, Issue 1 , pp 5-22
- Cover Date
- Print ISSN
- Online ISSN
- Kluwer Academic Publishers
- Additional Links
- Malmquist productivity index
- scale efficiency
- translog distance functions
- Industry Sectors
- Luis Orea (1)
- Author Affiliations
- 1. Department of Economics, University of Oviedo, Avenida del Cristo, s/n, 33071, Oviedo, Spain