Abstract
In recent years the Malmquist index has gained in popularity as a measure of productivity change. We demonstrate that, in the presence of non-constant returns to scale, the Malmquist productivity index does not accurately measure productivity change. The bias is systematic, and depends on the magnitude of scale economies. © 1995.
Original language | English |
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Pages (from-to) | 169-175 |
Journal | Economics Letters |
Volume | 47 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1 Feb 1995 |
Keywords
- Malmquist
- Productivity
- Scale economies