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Luenberger and Malmquist productivity indices in Japan, 1955-1995

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  • S. Managi

Abstract

The Luenberger productivity index can simultaneously contract inputs and expand outputs, and is dual to profit maximization. The index is a generalization of the Malmquist productivity index, which is commonly used in productivity studies. Both the Luenberger and Malmquist productivity indices are applied to the prefectural level data in Japan over 1955-1995. If profit maximization assumption is more appropriate than revenue maximization, Malmquist productivity index overestimates productivity changes, since it provides nearly twice growth rate compared to the rate given by the Luenberger productivity index.

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  • S. Managi, 2003. "Luenberger and Malmquist productivity indices in Japan, 1955-1995," Applied Economics Letters, Taylor & Francis Journals, vol. 10(9), pages 581-584.
  • Handle: RePEc:taf:apeclt:v:10:y:2003:i:9:p:581-584
    DOI: 10.1080/1350485032000100170
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    References listed on IDEAS

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    1. Fukao, Kyoji & Yue, Ximing, 2000. "Regional Factor Inputs and Convergence in Japan―How Much Can We Apply Closed Economy Neoclassical Growth Models?―," Economic Review, Hitotsubashi University, vol. 51(2), pages 136-151, April.
    2. Jean‐Philippe Boussemart & Walter Briec & Kristiaan Kerstens & Jean‐Christophe Poutineau, 2003. "Luenberger and Malmquist Productivity Indices: Theoretical Comparisons and Empirical Illustration," Bulletin of Economic Research, Wiley Blackwell, vol. 55(4), pages 391-405, October.
    3. Robert G. Chambers, 2002. "Exact nonradial input, output, and productivity measurement," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 20(4), pages 751-765.
    4. Luenberger, David G., 1992. "Benefit functions and duality," Journal of Mathematical Economics, Elsevier, vol. 21(5), pages 461-481.
    5. Chambers, Robert G. & Fare, Rolf & Grosskopf, Shawna, 1996. "Productivity Growth in APEC Countries," Working Papers 197843, University of Maryland, Department of Agricultural and Resource Economics.
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    Cited by:

    1. Epure, Mircea & Kerstens, Kristiaan & Prior, Diego, 2011. "Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator," European Journal of Operational Research, Elsevier, vol. 211(3), pages 630-641, June.
    2. Makiko Nakano & Shunsuke Managi, 2010. "Productivity Analysis With Co2 Emissions In Japan," Pacific Economic Review, Wiley Blackwell, vol. 15(5), pages 708-718, December.
    3. Chiang-Ping Chen & Jin-Li Hu & Chih-Hai Yang, 2013. "Produce patents or journal articles? A cross-country comparison of R&D productivity change," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(3), pages 833-849, March.
    4. Molinos-Senante, María & Maziotis, Alexandros & Sala-Garrido, Ramón, 2014. "The Luenberger productivity indicator in the water industry: An empirical analysis for England and Wales," Utilities Policy, Elsevier, vol. 30(C), pages 18-28.
    5. Shunsuke Managi & Shinji Kaneko, 2006. "Productivity of market and environmental abatement in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 7(4), pages 459-470, December.
    6. Zuoren Sun & Chao An & Huachen Sun, 2018. "Regional Differences in Energy and Environmental Performance: An Empirical Study of 283 Cities in China," Sustainability, MDPI, vol. 10(7), pages 1-28, July.
    7. Makiko Nakano & Shunsuke Managi, 2012. "Waste generations and efficiency measures in Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(4), pages 327-339, October.
    8. Chang, Tzu-Pu & Hu, Jin-Li, 2010. "Total-factor energy productivity growth, technical progress, and efficiency change: An empirical study of China," Applied Energy, Elsevier, vol. 87(10), pages 3262-3270, October.
    9. Shunsuke Managi & Samuel Mulenga Bwalya, 2010. "Foreign direct investment and technology spillovers in sub-Saharan Africa," Applied Economics Letters, Taylor & Francis Journals, vol. 17(6), pages 605-608.
    10. Briec, Walter & Kerstens, Kristiaan, 2009. "The Luenberger productivity indicator: An economic specification leading to infeasibilities," Economic Modelling, Elsevier, vol. 26(3), pages 597-600, May.
    11. Shogo Eguchi, 2017. "Understanding productivity declines of resource accumulation in the prefectures of Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(2), pages 337-357, April.
    12. Epure, Mircea & Kerstens, Kristiaan & Prior, Diego, 2008. "Benchmarking and Total Factor Productivity: A Luenberger Decomposition within the Banking Sector," Efficiency Series Papers 2008/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    13. Masayuki Sato & Kenta Tanaka & Shunsuke Managi, 2018. "Inclusive wealth, total factor productivity, and sustainability: an empirical analysis," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(4), pages 741-757, October.

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