A Luenberger-Hicks-Moorsteen productivity indicator: its relation to the Hicks-Moorsteen productivity index and the Luenberger productivity indicator

Summary.Introducing a new difference-based Luenberger-Hicks-Moorsteen productivity indicator, this contribution establishes theoretically its relations with some existing ratio- and difference-based productivity indexes and indicators. The first main result is an approximation proposition stating that the logarithm of the Hicks-Moorsteen productivity index is about equal to the Luenberger-Hicks-Moorsteen productivity indicator. Secondly, we also establish the specific conditions under which the Luenberger-Hicks-Moorsteen indicator equals the recently introduced Luenberger indicator and compare these to the conditions governing the relations between ratio-based Hicks-Moorsteen and Malmquist indices.

[1]  W. Briec.  A Graph-Type Extension of Farrell Technical Efficiency Measure , 1997 .

[2]  Robert Chambers,et al.  Input and Output Indicators , 1998 .

[3]  Kwansoo Kim,et al.  Efficiency and technological change at US research universities , 2012 .

[4]  R. Färe,et al.  Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries , 1994 .

[5]  R. Chambers.  Exact nonradial input, output, and productivity measurement , 2002 .

[6]  R. Färe,et al.  A nonparametric test of translation homotheticity , 2001 .

[7]  R. Färe,et al.  Profit, Directional Distance Functions, and Nerlovian Efficiency , 1998 .

[8]  S. Grosskopf,et al.  On Separability of the Profit Function , 2000 .

[9]  Hans Bjurek.  The Malmquist Total Factor Productivity Index , 1996 .

[10]  D. Luenberger.  New optimality principles for economic efficiency and equilibrium , 1992 .

[11]  S. Grosskopf,et al.  PRODUCTIVITY GROWTH IN APEC COUNTRIES , 1996 .

[12]  Rolf Färe,et al.  EFFICIENCY, QUANTITY INDEXES, AND PRODUCTIVITY INDEXES: A SYNTHESIS , 1994 .

[13]  L. R. Christensen,et al.  THE ECONOMIC THEORY OF INDEX NUMBERS AND THE MEASUREMENT OF INPUT, OUTPUT, AND PRODUCTIVITY , 1982 .

[14]  D. Primont,et al.  Multi-Output Production and Duality: Theory and Applications , 1994 .

[15]  R. Färe,et al.  Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach , 1994 .

[16]  W. Diewert,et al.  Index Number Theory Using Differences Rather Than Ratios , 2005 .

[17]  A. Charnes,et al.  Data Envelopment Analysis Theory, Methodology and Applications , 1995 .

[18]  W. Briec,et al.  Luenberger and Malmquist Productivity Indices: Theoretical Comparisons and Empirical Illustration , 2003 .

[19]  Rolf Färe,et al.  Translation homotheticity , 1998 .

[20]  Mieko Nishimizu.  Total factor productivity growth, technological progress and technical efficiency change : dimensions of productivity change in Yugoslavia, 1965-1978 , 1982 .

[21]  C. Hulten,et al.  New Developments in Productivity Analysis , 2001 .

[22]  Rolf Färe,et al.  On two definitions of productivity , 1996 .