A Sequential Malmquist-Luenberger Productivity Index
AbstractThis study proposes an alternative methodology for measuring environmentally sensitive productivity growth. The rationale of this methodology is to consider the features of technology appropriately by excluding a spurious technical regress based on the macroeconomic perspective. In order to consider this condition and to develop an alternative index, a directional distance function and the concept of the successive sequential production possibility set are combined. With this combination, the conventional Malmquist-Luenberger productivity index is modified to give the alternative sequential environmentally sensitive productivity index. This proposed index is employed in measuring productivity growth and its decomposed components of OECD countries for the period 1970-2003. We distinguish two main empirical findings. First, even though the components of the conventional Malmquist-Luenberger productivity index and the proposed index are different, the developments of productivity are similar. Second, unlike in previous studies, the efficiency change is the main contributor to the earlier study period, whereas the effect of technical change has prevailed over time.
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Bibliographic InfoPaper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 181.
Length: 36 pages
Date of creation: 04 Jun 2009
Date of revision:
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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
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More information through EDIRC
efficiency change; environmentally sensitive; productivity growth index; directional distance function; Malmquist-Luenberger; productivity index; productivity; sequential production; possibility set; technical change;
Other versions of this item:
- Donghyun Oh & Almas Heshmati, 2009. "A Sequential Malmquist-Luenberger Productivity Index," TEMEP Discussion Papers 200910, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2009.
- Oh, Donghyun & Heshmati, Almas, 2009. "A Sequential Malmquist-Luenberger Productivity Index," IZA Discussion Papers 4199, Institute for the Study of Labor (IZA).
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-03 (All new papers)
- NEP-BEC-2009-06-03 (Business Economics)
- NEP-EFF-2009-06-03 (Efficiency & Productivity)
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