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Measurement of productivity index with dynamic DEA

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  • Ali Emrouznejad
  • Emmanuel Thanassoulis

Abstract

Fare, Grosskopf, Norris and Zhang developed a non-parametric productivity index, Malmquist index, using data envelopment analysis (DEA). The Malmquist index is a measure of productivity progress (regress) and it can be decomposed to different components such as 'efficiency catch-up' and 'technology change'. However, Malmquist index and its components are based on two period of time which can capture only a part of the impact of investment in long-lived assets. The effects of lags in the investment process on the capital stock have been ignored in the current model of Malmquist index. This paper extends the recent dynamic DEA model introduced by Emrouznejad and Thanassoulis and Emrouznejad for dynamic Malmquist index. This paper shows that the dynamic productivity results for Organisation for Economic Cooperation and Development countries should reflect reality better than those based on conventional model.

Suggested Citation

  • Ali Emrouznejad & Emmanuel Thanassoulis, 2010. "Measurement of productivity index with dynamic DEA," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 8(2), pages 247-260.
    • Handle: RePEc:ids:ijores:v:8:y:2010:i:2:p:247-260
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    Citations

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    Cited by:

    1. Georgios Digkas & Konstantinos Petridis & Alexander Chatzigeorgiou & Emmanouil Stiakakis & Ali Emrouznejad, 2020. "Measuring Spatio-temporal Efficiency: An R Implementation for Time-Evolving Units," Computational Economics, Springer;Society for Computational Economics, vol. 56(4), pages 843-864, December.
    2. Konstantinos Petridis & Alexander Chatzigeorgiou & Emmanouil Stiakakis, 2016. "A spatiotemporal Data Envelopment Analysis (S-T DEA) approach: the need to assess evolving units," Annals of Operations Research, Springer, vol. 238(1), pages 475-496, March.
    3. Emrouznejad, Ali & De Witte, Kristof, 2010. "COOPER-framework: A unified process for non-parametric projects," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1573-1586, December.
    4. Konstantinos Petridis & Alexander Chatzigeorgiou & Emmanouil Stiakakis, 2016. "A spatiotemporal Data Envelopment Analysis (S-T DEA) approach: the need to assess evolving units," Annals of Operations Research, Springer, vol. 238(1), pages 475-496, March.

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