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Aggregation of Productivity Indices: The Allocative Efficiency Correction

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  • Thijs Raa

Abstract

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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    Citations

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    Cited by:

    1. Ten Raa, T., 2006. "The Theory of Benchmarking and the Measurement of Industrial Organization," Other publications TiSEM df28587f-03e6-42b9-ae40-6, Tilburg University, School of Economics and Management.
    2. Arnaud Abad & Rabaozafy Louisa Andriamasy & Walter Briec, 2018. "Surplus measures and luenberger Hicks–Moorsteen productivity indicator," Journal of Economics, Springer, vol. 125(3), pages 279-308, November.
    3. 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..
    4. 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.
    5. Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    6. Thijs Raa, 2011. "Benchmarking and industry performance," Journal of Productivity Analysis, Springer, vol. 36(3), pages 285-292, December.
    7. Bos, J.W.B. & van Santen, P.C. & 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).
    8. Avninder Gill, 2011. "Measurement and Comparison of Productivity Performance Under Fuzzy Imprecise Data," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 2(1), pages 19-32, April.
    9. 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.
    10. 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

    Keywords

    aggregation; productivity; allocative efficiency; O47; C43;
    All these keywords.

    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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