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Efficiency and Productivity: Malmquist and More

Rolf Färe, Shawna Grosskopf, Dimitris Margaritis

Open publisher page 160 citations

Abstract

This chapter provides a link between the efficiency issues raised in Chapters 1-3 of this volume and the traditional measures of productivity and productivity growth. One of the key insights this link provides is the identification of the contributions of innovation (technical change or shifts in the frontier of technology) and diffusion and learning (catching up or efficiency change) to productivity growth. Topics discussed include duality and efficiency theory, productivity, decomposition of productivity, aggregation of indexes and indicators of efficiency and productivity, empirical estimation of the distance function-based productivity measures, and advantages and disadvantages of the various indexes and indicators.

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What this paper is about

This chapter provides a link between the efficiency issues raised in Chapters 1-3 of this volume and the traditional measures of productivity and productivity growth. One of the key insights this link provides is the identification of the contributions of innovation (technical change or shifts in the frontier of technology) and diffusion and learning (catching up or efficiency change) to productivity growth. Topics discussed include duality and efficiency theory, productivity, decomposition of productivity, aggregation of indexes and indicators of efficiency and productivity, empirical estimation of the distance function-based productivity measures, and advantages and disadvantages of the various indexes and indicators.

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OpenAlex reports 160 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This chapter provides a link between the efficiency issues raised in Chapters 1-3 of this volume and the traditional measures of productivity and productivity growth. One of the key insights this link provides is the identification of the contributions of innovation (technical change or shifts in the frontier of technology) and diffusion and learning (catching up or efficiency change) to productivity growth. Topics discussed include duality and efficiency theory, productivity, decomposition of productivity, aggregation of indexes and indicators of efficiency and productivity, empirical estimation of the distance function-based productivity measures, and advantages and disadvantages of the various indexes and indicators.

Key concepts: Productivity, Productivity model, Economics, Technological change, Dual (grammatical number), Econometrics, Total factor productivity, Multifactor productivity

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