Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization
The performance of a decision making unit (DMU) can be evaluated in either a cross-sectional or a time-series manner, and data envelopment analysis (DEA) is a useful method for both types of evaluation. In order to eliminate the inconsistency caused by using different frontier facets to calculate efficiency, common-weights DEA models have been developed, under which a group of DMUs can be ranked for a specific period. This study proposes a common-weights DEA model for time-series evaluations to calculate the global Malmquist productivity index (MPI) so that the productivity changes of all DMUs have a common basis for comparison. The common-weights global MPI not only has sound properties, but also produces reliable results. The case of Taiwan forests after reorganization shows that the MPIs calculated from the conventional DEA model produce misleading results. The common-weights global MPI approach, on the other hand, correctly identifies districts with unsatisfactory performance before the reorganization and those with unsatisfactory productivity improvement after the reorganization.
Volume (Year): 38 (2010)
Issue (Month): 6 (December)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tone, Kaoru & Tsutsui, Miki, 2010. "Dynamic DEA: A slacks-based measure approach," Omega, Elsevier, vol. 38(3-4), pages 145-156, June.
- Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
- Sarrico, C. S. & Dyson, R. G., 2004. "Restricting virtual weights in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 159(1), pages 17-34, November.
- Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Sueyoshi, Toshiyuki, 1998. "Privatization of nippon telegraph and telephone: Was it a good policy decision?," European Journal of Operational Research, Elsevier, vol. 107(1), pages 45-61, May.
- Sinuany-Stern, Zilla & Friedman, Lea, 1998. "DEA and the discriminant analysis of ratios for ranking units," European Journal of Operational Research, Elsevier, vol. 111(3), pages 470-478, December.
- Sylviane Guillaumont Jeanneney & Ping Hua & Zhicheng Liang, 2011.
"Financial Development, Economic Efficiency and Productivity Growth: Evidence from China,"
- Sylviane GUILLAUMONT JEANNENEY & PING HUA & ZHICHENG LIANG, 2006. "Financial Development, Economic Efficiency, And Productivity Growth: Evidence From China," The Developing Economies, Institute of Developing Economies, vol. 44(1), pages 27-52.
- Zhicheng LIANG & Ping HUA & Sylviane GUILLAUMONT JEANNENEY, 2006. "Financial Development, Economic Efficiency and Productivity Growth: Evidence from China," Working Papers 200625, CERDI.
- Roll, Y & Golany, B., 1993. "Alternate methods of treating factor weights in DEA," Omega, Elsevier, vol. 21(1), pages 99-109, January.
- Zhu, Joe, 1996. "Robustness of the efficient DMUs in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 90(3), pages 451-460, May.
- Isidoro Guzman & Carmelo Reverte, 2008. "Productivity and efficiency change and shareholder value: evidence from the Spanish banking sector," Applied Economics, Taylor & Francis Journals, vol. 40(15), pages 2037-2044.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
- Friedman, Lea & Sinuany-Stern, Zilla, 1997. "Scaling units via the canonical correlation analysis in the DEA context," European Journal of Operational Research, Elsevier, vol. 100(3), pages 629-637, August.
- Chang, Hsihui & Choy, Hiu Lam & Cooper, William W. & Ruefli, Timothy W., 2009. "Using Malmquist Indexes to measure changes in the productivity and efficiency of US accounting firms before and after the Sarbanes-Oxley Act," Omega, Elsevier, vol. 37(5), pages 951-960, October.
- Cooper, W. W. & Tone, K., 1997. "Measures of inefficiency in data envelopment analysis and stochastic frontier estimation," European Journal of Operational Research, Elsevier, vol. 99(1), pages 72-88, May.
- Doyle, John R., 1995. "Multiattribute Choice for the Lazy Decision Maker: Let the Alternatives Decide!," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(1), pages 87-100, April.
- Kao, Chiang & Chi Yang, Yong, 1992. "Reorganization of forest districts via efficiency measurement," European Journal of Operational Research, Elsevier, vol. 58(3), pages 356-362, May.
- Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
- Cook, Wade D. & Seiford, Lawrence M. & Zhu, Joe, 2004. "Models for performance benchmarking: measuring the effect of e-business activities on banking performance," Omega, Elsevier, vol. 32(4), pages 313-322, August.
When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:38:y:2010:i:6:p:484-491. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.