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The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms

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  • Kelvin Balcombe
  • Sophia Davidova
  • Laure Latruffe

Abstract

This article assesses the extent to which sampling variation affects findings about Malmquist productivity change derived using data envelopment analysis (DEA), in the first stage by calculating productivity indices and in the second stage by investigating the farm-specific change in productivity. Confidence intervals for Malmquist indices are constructed using Simar and Wilson's (1999) bootstrapping procedure. The main contribution of this article is to account in the second stage for the information in the second stage provided by the first-stage bootstrap. The DEA SEs of the Malmquist indices given by bootstrapping are employed in an innovative heteroscedastic panel regression, using a maximum likelihood procedure. The application is to a sample of 250 Polish farms over the period 1996 to 2000. The confidence intervals' results suggest that the second half of 1990s for Polish farms was characterized not so much by productivity regress but rather by stagnation. As for the determinants of farm productivity change, we find that the integration of the DEA SEs in the second-stage regression is significant in explaining a proportion of the variance in the error term. Although our heteroscedastic regression results differ with those from the standard OLS, in terms of significance and sign, they are consistent with theory and previous research.

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  • Kelvin Balcombe & Sophia Davidova & Laure Latruffe, 2008. "The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2055-2061.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:16:p:2055-2061
    DOI: 10.1080/00036840600949264
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    2. Rodrigo Taborda & Julieth Santamaría, 2011. "Productivity growth in electric energy retail in Colombia. A bootstrapped malmquist indices approach," Documentos de Trabajo 9152, Universidad del Rosario.
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    5. Boon L Lee, 2012. "Efficiency and Productivity of Singapore's Manufacturing Sector 2001-2010: An analysis using Simar and Wilson's (2007) bootstrapped truncated approach," School of Economics and Finance Discussion Papers and Working Papers Series 283, School of Economics and Finance, Queensland University of Technology.
    6. Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2013. "Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3529-3529, August.
    7. Boon L. Lee, 2013. "Productivity, technical and efficiency change in Singapore's services sector, 2005 to 2008," Applied Economics, Taylor & Francis Journals, vol. 45(15), pages 2023-2029, May.
    8. Kelvin Balcombe & Sophia Davidova & Laure Latruffe, 2008. "The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms," Applied Economics, Taylor & Francis Journals, vol. 40(16), pages 2055-2061.
    9. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2013. "Dynamics of productivity in higher education: cross-european evidence based on bootstrapped Malmquist indices," Journal of Productivity Analysis, Springer, vol. 40(1), pages 67-82, August.
    10. Tomas Baležentis, 2014. "Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 731-746, November.
    11. Baležentis, Tomas & De Witte, Kristof, 2015. "One- and multi-directional conditional efficiency measurement – Efficiency in Lithuanian family farms," European Journal of Operational Research, Elsevier, vol. 245(2), pages 612-622.
    12. Arjomandi, Amir & Valadkhani, Abbas & Harvie, Charles, 2011. "Analysing Productivity Changes Using the Bootstrapped Malmquist Approach: The Case of the Iranian Banking Industry," MPRA Paper 50397, University Library of Munich, Germany.
    13. Dong‐Sing He & Imen Tebourbi, 2021. "Measuring the continuation effects of market order entry: A dynamic model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 762-777, April.
    14. Olson, Kent D. & Vu, Linh, 2009. "Productivity Growth, Technical Efficiency and Technical Change on Minnesota Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49204, Agricultural and Applied Economics Association.
    15. Assaf, A. George & Gillen, David & Barros, Carlos, 2012. "Performance assessment of UK airports: Evidence from a Bayesian dynamic frontier model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 603-615.
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    17. Yiorgos Gadanakis & Jorge Campos-González & Philip Jones, 2024. "Linking Entrepreneurship to Productivity: Using a Composite Indicator for Farm-Level Innovation in UK Agriculture with Secondary Data," Agriculture, MDPI, vol. 14(3), pages 1-23, March.

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