Global Malmquist and cost Malmquist indexes for group comparison

China; Circularity; Global cost Malmquist index; Global Malmquist index; Groups; Infeasibility; Business and International Management; Social Sciences (miscellaneous); Economics and Econometrics

Abstract :

[en] The Malmquist index (MI) has demonstrated its usefulness in comparing the performances of Decision Making Units (DMUs) performances. The global MI (GMI) has been suggested as a means to overcome three drawbacks of the MI: non-circularity, disparate measurements, and infeasibility. Recently, it has appeared that the MI can also be used to compare groups of DMUs. While this new function of the index has also increased its usefulness, it presents the same drawbacks as the MI. In this paper, we define the global counterpart of the MI for group contexts. We also consider the case where DMUs have an economic optimization behavior by proposing a global cost MI (GCMI). The GCMI requires the observation of the input prices. As it may represent a strong assumption, we propose solutions. These two novel indexes equip the practitioners with a new toolkit. We illustrate the usefulness of our new indexes with the Chinese energy sector.

Disciplines :

Quantitative methods in economics & management

Author, co-author :

Walheer, Barnabé ; Université de Liège - ULiège > HEC Liège : UER > UER Economie : Microéconométrie et économétrie appliquée

Language :

English

Title :

Global Malmquist and cost Malmquist indexes for group comparison

Publication date :

2022

Journal title :

Journal of Productivity Analysis

ISSN :

0895-562X

eISSN :

1573-0441

Publisher :

Springer

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 17 June 2022

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