A Parametric Distance Function Approach for Malmquist Productivity Index Estimation

Fuentes, Hugo J.; Grifell-Tatjé, Emili; Perelman, Sergio

doi:10.1023/A:1007852020847

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A Parametric Distance Function Approach for Malmquist Productivity Index Estimation

Fuentes, Hugo J.; Grifell-Tatjé, Emili; Perelman, Sergio

2001 • In Journal of Productivity Analysis, 15, p. 79-94

Peer Reviewed verified by ORBi

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https://hdl.handle.net/2268/1997

DOI
10.1023/A:1007852020847

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Keywords :

Distance Functions; Malmquist Index; Parametric Frontier; Spanish Insurance

Abstract :

[en] Malmquist indexes of productivity are generally estimated using index number techniques or non-parametric frontier approaches. The aim of this paper is to showthat Malmquist indexes can be estimated in a similar way using parametric-deterministic or parametric-stochastic frontier approaches. To allow a multi-output multi-input technology and for technical change in production, we adopt an output distance function which is specified in a translog form. We then show that using the estimated parameters, several radial distance functions can be calculated and combined in order to estimate and decompose the productivity index. Finally, this approach is applied to a panel of Spanish insurance companies. The main results confirm those generally obtained for financial services: very low rates of growth and technical change in spite of a rapid deregulation process and expansion of activity.

Research Center/Unit :

CREPP - Centre de Recherche en Économie Publique et de la Population - ULiège

Disciplines :

Economic systems & public economics

Author, co-author :

Fuentes, Hugo J.

Grifell-Tatjé, Emili

Perelman, Sergio ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie publique appliquée

Language :

English

Title :

A Parametric Distance Function Approach for Malmquist Productivity Index Estimation

Publication date :

2001

Journal title :

Journal of Productivity Analysis

ISSN :

0895-562X

eISSN :

1573-0441

Publisher :

Springer Science & Business Media B.V.

Volume :

Pages :

79-94

Peer reviewed :

Peer Reviewed verified by ORBi

Funders :

FWB - Fédération Wallonie-Bruxelles

Available on ORBi :

since 17 February 2010

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Scopus citations^®

106

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104

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147

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