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Decomposition of the Fisher Ideal Index of Productivity: A Non-parametric Dual Analysis of US Airlines Data

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  • Ray, Subhash C
  • Mukherjee, Kankana

Abstract

In this paper, the authors offer a nonparametric method of decomposing the Fisher ideal index of productivity into individual factors measuring technical efficiency change, allocative efficiency change, shift in the cost function, scale economies due to output change, and an adjustment factor reflecting change in the output attributes. Cross-section data from the U.S. airline industry for the years 1983 and 1984 are utilized in an empirical application illustrating this method. Copyright 1996 by Royal Economic Society.

Suggested Citation

  • Ray, Subhash C & Mukherjee, Kankana, 1996. "Decomposition of the Fisher Ideal Index of Productivity: A Non-parametric Dual Analysis of US Airlines Data," Economic Journal, Royal Economic Society, vol. 106(439), pages 1659-1678, November.
    • Handle: RePEc:ecj:econjl:v:106:y:1996:i:439:p:1659-78
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