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Reference Technology Sets, Free Disposal Hulls and Productivity Decompositions

  • Diewert, Erwin
  • Fox, Kevin

Diewert and Fox (2013) proposed decompositions of a Malmquist-type productivity index into explanatory factors, with a focus on extracting technical progress, technical efficiency change and returns to scale components. A major problem with their decompositions is that it may be difficult to determine the appropriate reference technologies. Using relatively unrestrictive regularity conditions, the paper develops a data envelopment type approach for decomposing productivity growth for a panel of production units into explanatory factors based on the Free Disposal Hull methods pioneered by Tulkens and his co-authors.

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File URL: http://www.economics.ubc.ca/faculty-and-staff/w-erwin-diewert/
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Paper provided by Vancouver School of Economics in its series Economics working papers with number erwin_diewert-2013-40.

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Length: 11 pages
Date of creation: 18 Sep 2013
Date of revision: 18 Sep 2013
Handle: RePEc:ubc:bricol:erwin_diewert-2013-40
Contact details of provider: Web page: http://www.economics.ubc.ca/

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  1. Cinzia Daraio & Léopold Simar, 2005. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," Journal of Productivity Analysis, Springer, vol. 24(1), pages 93-121, 09.
  2. Diewert, Erwin & Fox, Kevin, 2013. "Decomposing Malmquist Productivity Indexes into Explanatory Factors," Economics working papers erwin_diewert-2013-39, Vancouver School of Economics, revised 18 Sep 2013.
  3. R. Russell & William Schworm, 2009. "Axiomatic foundations of efficiency measurement on data-generated technologies," Journal of Productivity Analysis, Springer, vol. 31(2), pages 77-86, April.
  4. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
  5. Tulkens, H. & Vanden Eeckaut, P., . "Non-frontier measures of efficiency, progress and regress for time series data," CORE Discussion Papers RP -1159, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Charles C.L. Kwong & Wai Chung (Harry) Lo, 2006. "Guest Editors' Introduction," Chinese Economy, M.E. Sharpe, Inc., vol. 39(4), pages 3-9, August.
  7. TULKENS, Henry & VANDEN EECKAUT, Philippe, 1993. "Non-Parametric Efficiency, Progress and Regress Measures for Panel Data : Methodological Aspects," CORE Discussion Papers 1993016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Shawna Grosskopf, 2003. "Some Remarks on Productivity and its Decompositions," Journal of Productivity Analysis, Springer, vol. 20(3), pages 459-474, November.
  9. Diewert, W E, 1980. "Capital and the Theory of Productivity Measurement," American Economic Review, American Economic Association, vol. 70(2), pages 260-67, May.
  10. M. Ruth & K. Donaghy & P. Kirshen, 2006. "Introduction," Chapters, in: Regional Climate Change and Variability, chapter 1 Edward Elgar.
  11. Bjurek, Hans, 1996. " The Malmquist Total Factor Productivity Index," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(2), pages 303-13, June.
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