Comparison of the Malmquist Multifactor productivity index and the Malmquist productivity index and their decomposition
Hwang, Donghyun Leo
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This study provides the empirical test of the comparison of the partially oriented Malmquist productivity index(Caves et al, 1982) and Malmquist Multifactor productivity index (Bjurek, 1994, 1996) considering both output index and input index simultaneously and compare the Bjurek(1994,1996) decomposition and the Fare et al(1994b), with a panel data of agricultural output(crop and livestock) and inputs(intermediate, capital, land, and labor) of time period (1960-1996) for the 48 contiguous states. This present study shows a characteristics and closeness of the Malmquist productivity index and the Malmquist multifactor productivity index under the constant return to scale and the variable return to scale and its economically meaningful decomposition among Bjurek(1994,1996) and the Fare et al(1994b), with a result that Bjurek(1994, 1996) has a economically meaningful interpretation because in Bjurek(1994, 1996), a productivity is decomposed by variable return to scale technology
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