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Productivity change of Taiwanese farmers’ credit unions: a nonparametric metafrontier Malmquist–Luenberger productivity indicator

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Abstract

This study proposes a risk-adjusted productivity index based on the concept of the metfrontier. It can be decomposed into different sources beyond the change in technical efficiency and technology. Furthermore, as per the technology gap ratio existing in the relationship between a current (group-specific) technology and its potential technology (the metafrontier), there is a technology adjustment factor (TAF) in the relationship between the group-specific Malmquist–Luenberger productivity index and the metafrontier Malmquist–Luenberger productivity index. TAF can be further decomposed into the technology gap ratio change and the relative technology change of the meatfrontier to a group-specific technology (RTC). All the above components are measured by directional output distance functions which simultaneously accounts for desirable and undesirable outputs. Panel data of the Taiwanese credit departments of farmers’ associations covering the period 2006–2010 are illustrated to implement the above measurement and decomposition.

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Acknowledgments

The authors would like to thank two anonymous referees and the Editors of Central European Journal of Operations Research for their valuable comments and suggestions.

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Authors and Affiliations

  1. Department of International Business, Lunghwa University of Science and Technology, No. 300, Sec.1, Wanshou Rd., Guishan Shiang, Taoyuan County, 33306, Taiwan, ROC

    Jia-Ching Juo & Tsai-Chia Chen

  2. Department of Marketing and Logistics Management, Taipei Chengshih University of Science and Technology, No. 2, Xueyuan Rd., Peitou, Taipei, Taiwan, ROC

    Yu-Hui Lin

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  1. Jia-Ching Juo
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  2. Yu-Hui Lin
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  3. Tsai-Chia Chen
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Correspondence to Jia-Ching Juo.

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Juo, JC., Lin, YH. & Chen, TC. Productivity change of Taiwanese farmers’ credit unions: a nonparametric metafrontier Malmquist–Luenberger productivity indicator. Cent Eur J Oper Res 23, 125–147 (2015). https://doi.org/10.1007/s10100-013-0307-6

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