ISSN:
1573-0441
Keywords:
Malmquist Productivity Index
;
Efficiency Measure
;
DEA
;
Slacks
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract The Malmquist productivity index has been based on ratios of radial Farrell efficiency scores. Calculating these relative to piecewise linear production frontiers slacks may appear, implying that the full magnitude of inefficiency is not revealed. Should the index rather be based on efficiency measures including slacks? Two arguments against are offered. Firstly, productivity calculation is different from efficiency calculation in the sense that the former compares actual data points while the latter expresses hypothetical productivity improvement. Secondly, slacks appear due to the “default rule” of using “inner bounds” of vertical and/or horizontal segments at the “edges” of the technology set.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1018342214700
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