Reference technology sets, Free Disposal Hulls and productivity decompositions

Economics Letters, 2014, vol. 122, issue 2, 238-242

Abstract: 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.

Keywords: Productivity indexes; Free Disposal Hulls; Technical efficiency; Technical progress; Returns to scale; Distance functions (search for similar items in EconPapers)
JEL-codes: C43 D24 E23 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (24)

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Working Paper: Reference Technology Sets, Free Disposal Hulls and Productivity Decompositions (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:2:p:238-242

DOI: 10.1016/j.econlet.2013.11.026

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