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Biased Technical Change and the Malmquist Productivity Index

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  • R. Fare
  • E. Grifell-Tatje
  • S. Grosskopf
  • C.A.K. Lovell

Abstract

The Malmquist productivity index has many attractive features. One is that it decomposes into a technical efficiency change index and a technical change index. Under constant returns to scale, its technical efficiency change index has been decomposed into a "pure" technical efficiency change index, a scale efficiency change index, and a congestion change index. Here we maintain the same assumption, and we decompose its technical change index into a magnitude index and a bias index. We then decompose the bias index into an output bias index and an input bias index, and we state conditions under which either bias index makes no contribution to productivity change.

Suggested Citation

  • R. Fare & E. Grifell-Tatje & S. Grosskopf & C.A.K. Lovell, 1995. "Biased Technical Change and the Malmquist Productivity Index," Microeconomics 9508002, University Library of Munich, Germany, revised 22 Aug 1995.
    • Handle: RePEc:wpa:wuwpmi:9508002
    Note: Type of Document - Word for Windows (v.6?); prepared on IBM compatible; to print on HP LaserJet; pages: 20; figures: none. Browse all of our working papers at
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    References listed on IDEAS

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    1. Berg, Sigbjorn Atle & Forsund, Finn R & Jansen, Eilev S, 1992. " Malmquist Indices of Productivity Growth during the Deregulation of Norwegian Banking, 1980-89," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 211-228, Supplemen.
    2. Balk, Bert M, 1993. "Malmquist Productivity Indexes and Fisher Ideal Indexes: Comment," Economic Journal, Royal Economic Society, vol. 103(418), pages 680-682, May.
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    More about this item

    Keywords

    productivity; technical change; Malmquist index;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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