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Parametric Decomposition of the Input-Oriented Malmquist Productivity Index: With an Application to Greek Aquaculture

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Author Info
Christos Pantzios
Vangelis Tzouvelekas () (Department of Economics, University of Crete, Greece)
Giannis Karagiannis () (Department of Economics, University of Macedonia, Greece)

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Abstract

Using a stochastic frontier approach and a tranlog input distance function, this paper implements the input-oriented Malmquist productivity index to a sample of Greek aquaculture farms. It is decomposed into the effects of technical efficiency change, scale efficiency change, input-mix and, technical change, which is further attributed to neutral, output- and input-induced shifts of the frontier. Implementable expressions for the aforementioned components are obtained using a discrete changes-approach that is consistent with the usual discrete-form data. Empirical findings indicate that the productivity of the farms in the sample increased during the period 1995-99 at a moderate rate of about two percent, and it was shaped up primarily by the input mix-effect and technical change.

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File URL: http://economics.soc.uoc.gr/wpa/docs/MRE.pdf
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Publisher Info
Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0518.

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Length: 27 pages
Date of creation: 00 2005
Date of revision:
Handle: RePEc:crt:wpaper:0518

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Related research
Keywords: Malmquist productivity index; stochastic input distance function; Greek aquaculture farms;

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References listed on IDEAS
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  1. Diewert, Erwin, 2007. "Index Numbers," UBC Departmental Archives diewert-07-01-03-08-17-23, UBC Department of Economics, revised 31 Jan 2007. [Downloadable!]
  2. Fare, Rolf, et al, 1997. " Biased Technical Change and the Malmquist Productivity Index," Scandinavian Journal of Economics, Blackwell Publishing, vol. 99(1), pages 119-27, March. [Downloadable!] (restricted)
  3. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September. [Downloadable!] (restricted)
  4. Karagiannis, Giannis & Katranidis, Stelios D & Tzouvelekas, Vangelis, 2002. "Measuring and Attributing Technical Inefficiencies of Seabass and Seabream Production in Greece," Applied Economics Letters, Taylor and Francis Journals, vol. 9(8), pages 519-22, June. [Downloadable!] (restricted)
  5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July. [Downloadable!] (restricted)
  6. Chambers Robert G. & Fare Rolf, 1994. "Hicks' Neutrality and Trade Biased Growth: A Taxonomy," Journal of Economic Theory, Elsevier, vol. 64(2), pages 554-567, December. [Downloadable!] (restricted)
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