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Title:A sequential Malmquist-Luenberger productivity index PDF Logo
Authors:Oh, Donghyun
Heshmati, Almas
Issue Date:2009
Series/Report no.:IZA discussion papers 4199
Abstract:This study proposes an alternative methodology for measuring environmentally sensitive productivity growth. The rationale of this methodology is to consider the features of technology appropriately by excluding a spurious technical regress based on the macroeconomic perspective. In order to consider this condition and to develop an alternative index, a directional distance function and the concept of the successive sequential production possibility set are combined. With this combination, the conventional Malmquist-Luenberger productivity index is modified to give the alternative sequential environmentally sensitive productivity index. This proposed index is employed in measuring productivity growth and its decomposed components of OECD countries for the period 1970-2003. We distinguish two main empirical findings. First, even though the components of the conventional Malmquist-Luenberger productivity index and the proposed index are different, the developments of productivity are similar. Second, unlike in previous studies, the efficiency change is the main contributor to the earlier study period, whereas the effect of technical change has prevailed over time.
Subjects:Efficiency change
environmentally sensitive productivity growth index
directional distance function
Malmquist-Luenberger productivity index
productivity
sequential production possibility set
technical change
JEL:D24
D61
D57
C43
Q56
Persistent Identifier of the first edition:urn:nbn:de:101:1-20090615143
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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