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Parametric decomposition of the input-oriented Malmquist productivity index: with an application to Greek aquaculture

  • Christos Pantzios
  • Giannis Karagiannis
  • Vangelis Tzouvelekas

    ()

Using a stochastic frontier approach and a tranlog input distance function, this paper implements the input-oriented Malmquist productivity index to a sample of Greek aquaculture farms. It is decomposed into the effects of technical efficiency change, scale efficiency change, input-mix and, technical change, which is further attributed to neutral, output- and input-induced shifts of the frontier. Implementable expressions for the aforementioned components are obtained using a discrete changes-approach that is consistent with the usual discrete-form data. Empirical findings indicate that the productivity of the farms in the sample increased during the period 1995-99 at a moderate rate of about two percent, and it was shaped up primarily by the input mix-effect and technical change.

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File URL: http://hdl.handle.net/10.1007/s11123-010-0202-2
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Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 36 (2011)
Issue (Month): 1 (August)
Pages: 21-31

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Handle: RePEc:kap:jproda:v:36:y:2011:i:1:p:21-31
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  1. Fare, Rolf, et al, 1997. " Biased Technical Change and the Malmquist Productivity Index," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 119-27, March.
  2. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 18(1), pages 5-22, July.
  3. Bert Balk, 2001. "Scale Efficiency and Productivity Change," Journal of Productivity Analysis, Springer, vol. 15(3), pages 159-183, May.
  4. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
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  8. C. Lovell, 2003. "The Decomposition of Malmquist Productivity Indexes," Journal of Productivity Analysis, Springer, vol. 20(3), pages 437-458, November.
  9. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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  13. Shawna Grosskopf, 2003. "Some Remarks on Productivity and its Decompositions," Journal of Productivity Analysis, Springer, vol. 20(3), pages 459-474, November.
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