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Aggregation of Productivity Indices: The Allocative Efficiency Correction


  • Thijs Raa



Aggregation of productivity indices is known to be consistent under very restrictive conditions only. This paper quantifies the aggregation inconsistency. Copyright Springer Science+Business Media, Inc. 2005

Suggested Citation

  • Thijs Raa, 2005. "Aggregation of Productivity Indices: The Allocative Efficiency Correction," Journal of Productivity Analysis, Springer, vol. 24(2), pages 203-209, October.
  • Handle: RePEc:kap:jproda:v:24:y:2005:i:2:p:203-209
    DOI: 10.1007/s11123-005-4705-1

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    References listed on IDEAS

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Ten Raa, T., 2006. "The Theory of Benchmarking and the Measurement of Industrial Organization," Discussion Paper 2006-53, Tilburg University, Center for Economic Research.
    2. Thijs ten Raa & Pierre Mohnen, 2009. "Competition and Performance: The Different Roles of Capital and Labor," World Scientific Book Chapters,in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 20, pages 371-388 World Scientific Publishing Co. Pte. Ltd..
    3. Badunenko, Oleg & Fritsch, Michael & Stephan, Andreas, 2008. "Allocative efficiency measurement revisited--Do we really need input prices?," Economic Modelling, Elsevier, vol. 25(5), pages 1093-1109, September.
    4. Kuosmanen, Timo & Kortelainen, Mika & Sipiläinen, Timo & Cherchye, Laurens, 2010. "Firm and industry level profit efficiency analysis using absolute and uniform shadow prices," European Journal of Operational Research, Elsevier, vol. 202(2), pages 584-594, April.
    5. Thijs Raa, 2011. "Benchmarking and industry performance," Journal of Productivity Analysis, Springer, vol. 36(3), pages 285-292, December.
    6. Bos J.W.B. & Santen P.C. van & Schilp P., 2013. "The Importance of Reallocation for Productivity Growth: Evidence from European and US Banking," Research Memorandum 056, Maastricht University, Graduate School of Business and Economics (GSBE).
    7. Pachkova, Elena V., 2009. "Restricted reallocation of resources," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1049-1057, August.

    More about this item


    aggregation; productivity; allocative efficiency; O47; C43;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation


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