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A note on decomposing the Malmquist productivity index by means of subvector homotheticity
Department of Economics, Oregon State University, Corvallis, OR 97331-3612, United States.
Department of Economics, University of Oslo, Oslo, Norway.
Department of Economics, Oregon State University, Corvallis, OR 97331-3612, United States.
Dedman College, Southern Methodist University, Dallas, TX 75275, United States.
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2001 (English)In: Economic Theory, ISSN 0938-2259, E-ISSN 1432-0479, Vol. 17, no 1, 239-245 p.Article in journal (Refereed) Published
Abstract [en]

This paper introduces a decomposition of the Malmquist productivity index into component indexes. The motivation is to derive an analogue of the decomposition of the Törnqvist index into productivity and quality change provided by Fixler and Zieschang (1992) to the Malmquist index. Since we employ no second order approximations, this decomposition requires additional structure, namely a generalized version of Shephard’s (1970) inverse homotheticity, which we dub subvector homotheticity. We show that subvector homotheticity is necessary and sufficient for our decomposition.

Place, publisher, year, edition, pages
2001. Vol. 17, no 1, 239-245 p.
Keyword [en]
Decomposition; Malmquist productivity; Subvector homotheticity
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-24488Scopus ID: 2-s2.0-0035624805OAI: oai:DiVA.org:hj-24488DiVA: diva2:743027
Available from: 2014-09-03 Created: 2014-09-01 Last updated: 2016-01-14Bibliographically approved

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