Skip to main content
SpringerLink
Log in

A new, transitive productivity index

  • Published:
Journal of Productivity Analysis Aims and scope Submit manuscript

Abstract

The Malmquist productivity index is not transitive. This paper argues that, instead of trying to accommodate this two-period concept to a multi-period setting, it is preferable to look at the measurement of productivity, efficiency, and technical change in a multi-period setting from the outset. A new, transitive productivity index is developed with as by-product a measure of the non-neutrality of technical change. The various indices are illustrated on panel data of Swedish pharmacies.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aczél, J. (1990). “Determining Merged Relative Scores”. Journal of Mathematical Analysis and Applications, 150, 20–40.

    Google Scholar 

  • Althin, R (1995). “Measurement of Productivity Changes: Two Malmquist Index Approaches”. In Essays on the Measurement of Producer Performance. Doctoral Dissertation, Department of Economics, University of Lund.

  • Balk, B.M. (1996). “Multilateral Methods for International Price and Volume Comparisons”. Journal of Official Statistics, to appear.

  • Balk, B.M. (1995). “Axiomatic Price Index Theory: A Survey”. International Statistical Review 63, 69–93.

    Google Scholar 

  • Berg, S.A., F.R. Førsund, and E.S. Jansen. (1992). “Malmquist Indices of Productivity Growth during the Deregulation of Norwegian Banking, 1980–89”. Scandinavian Journal of Economics 94, Supplement, 211–228.

    Google Scholar 

  • Bjurek, H., and L. Hjalmarsson. (1995). “Productivity in Multiple Output Public Service: A Quadratic Frontier Function and Malmquist Index Approach”. Journal of Public Economics 56, 447–460.

    Google Scholar 

  • Caves, D.W., L.R. Christensen, and W.E. Diewert. (1982a). “The Economic Theory of Index Numbers and the Measurement of Input, Output and Productivity”, Econometrica 50, 1393–1414.

    Google Scholar 

  • Caves, D.W., L.R. Christensen, and W.E. Diewert. (1982b). “Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers”. The Economic Journal 92, 73–86.

    Google Scholar 

  • Eltetö, O., and P. Köves. (1964). “On an Index Computation Problem in International Comparisons” (in Hungarian). Statistikai Szemle 42, 507–518.

    Google Scholar 

  • Färe, R. (1993). “The Malmquist Productivity Index and the Circular Test”. Unpublished working paper, CORE, Leuven.

    Google Scholar 

  • Färe, R., and S. Grosskopf. (1994). Malmquist Productivity Indexes and Biased Technical Change. Discussion Paper No. 94–03, Department of Economics, Southern Illinois University, Carbondale.

    Google Scholar 

  • Färe, R., S. Grosskopf, B. Lindgren, and P. Roos. (1989). Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach. Discussion Paper No. 89–3, Department of Economics, Southern Illinois University, Carbondale. Chapter 13 in A. Charnes, W.W. Cooper, A.Y. Lewin, and L.R. Seiford (eds.), Data Envelopment Analysis: Theory, Methodology, and Application. Boston/Dordrecht/London: Kluwer Academic Publishers, 1994.

    Google Scholar 

  • Färe, R., S. Grosskopf, B. Lindgren, and P. Roos. (1992). “Productivity Changes in Swedish Pharmacies 1980–1989: A Non-Parametric Approach”. The Journal of Productivity Analysis 3, 85–101.

    Google Scholar 

  • Färe, R., S. Grosskopf, M. Norris, and Z. Zhang. (1994). “Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries”. The American Economic Review 84, 66–83.

    Google Scholar 

  • Färe, R. and D. Primont. (1995). Multi-Output Production and Duality: Theory and Applications. Dordrecht: Kluwer Academic Publishers.

    Google Scholar 

  • Grifell-Tatjé, E., and C.A.K. Lovell. (1994). A New Decomposition of the Malmquist Productivity Index. Working Paper No. 94–392E, College of Business Administration, The University of Georgia, Athens.

    Google Scholar 

  • Rao, D.S.P., and K.S. Banerjee. (1986). “A Multilateral Index Number System Based on the Factorial Approach”. Statistische Hefte/Statistical Papers 27, 297–313.

    Google Scholar 

  • Szulc, B. (1964). “Index Numbers of Multilateral Regional Comparisons” (in Polish). Przeglad Statysticzny 3, 239–254.

    Google Scholar 

  • Westergaard, H. (1890). Die Grundzüge der Theorie der Statistik. Jena: Gustav Fischer.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Statistical Methods, Statistics Netherlands, P.O. Box 4000, 2270, JM Voorburg, The Netherlands

    Bert M. Balk

  2. Novo Nordisk A/S, 2880, Bagsvaerd, Denmark

    Rikard Althin

Authors
  1. Bert M. Balk
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rikard Althin
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

At the time of writing, R. Althin was employed by The Swedish Institute for Health Economics. The views expressed in this paper are those of the authors and do not necessarily reflect the policies of Statistics Netherlands or The Swedish Institute for Health Economics.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Balk, B.M., Althin, R. A new, transitive productivity index. J Prod Anal 7, 19–27 (1996). https://doi.org/10.1007/BF00158474

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF00158474

Keywords

Search

Navigation