[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v241y2015i3p796-805.html
   My bibliography  Save this article

A cost Malmquist productivity index capturing group performance

Author

Listed:
  • Thanassoulis, Emmanuel
  • Shiraz, Rashed Khanjani
  • Maniadakis, Nikolaos
Abstract
This paper develops an index for comparing the productivity of groups of operating units in cost terms when input prices are available. In that sense it represents an extension of a similar index available in the literature for comparing groups of units in terms of technical productivity in the absence of input prices. The index is decomposed to reveal the origins of differences in performance of the groups of units both in terms of technical and cost productivity. The index and its decomposition are of value in contexts where the need arises to compare units which perform the same function but they can be grouped by virtue of the fact that they operate in different contexts as might for example arise in comparisons of water or gas transmission companies operating in different countries.

Suggested Citation

  • Thanassoulis, Emmanuel & Shiraz, Rashed Khanjani & Maniadakis, Nikolaos, 2015. "A cost Malmquist productivity index capturing group performance," European Journal of Operational Research, Elsevier, vol. 241(3), pages 796-805.
    • Handle: RePEc:eee:ejores:v:241:y:2015:i:3:p:796-805
    DOI: 10.1016/j.ejor.2014.09.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S037722171400719X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.09.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rolf Färe & Emili Grifell‐Tatjé & Shawna Grosskopf & C. A. Knox Lovell, 1997. "Biased Technical Change and the Malmquist Productivity Index," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(1), pages 119-127, March.
    2. Ray, Subhash C & Desli, Evangelia, 1997. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries: Comment," American Economic Review, American Economic Association, vol. 87(5), pages 1033-1039, December.
    3. Emmanuel Thanassoulis & Maria Da Conceicao & A. Silva Portela, 2002. "School Outcomes: Sharing the Responsibility Between Pupil and School1," Education Economics, Taylor & Francis Journals, vol. 10(2), pages 183-207.
    4. Maniadakis, Nikolaos & Thanassoulis, Emmanuel, 2004. "A cost Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 154(2), pages 396-409, April.
    5. Nikolaos Maniadakis & Emmanuel Thanassoulis, 2000. "Assessing productivity changes in UK hospitals reflecting technology and input prices," Applied Economics, Taylor & Francis Journals, vol. 32(12), pages 1575-1589.
    6. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    7. K Tone, 2002. "A strange case of the cost and allocative efficiencies in DEA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(11), pages 1225-1231, November.
    8. A. Camanho & R. Dyson, 2006. "Data envelopment analysis and Malmquist indices for measuring group performance," Journal of Productivity Analysis, Springer, vol. 26(1), pages 35-49, August.
    9. Tone, Kaoru & Tsutsui, Miki, 2007. "Decomposition of cost efficiency and its application to Japanese-US electric utility comparisons," Socio-Economic Planning Sciences, Elsevier, vol. 41(2), pages 91-106, June.
    10. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    11. Silva Portela, Maria Conceicao A. & Thanassoulis, Emmanuel, 2001. "Decomposing school and school-type efficiency," European Journal of Operational Research, Elsevier, vol. 132(2), pages 357-373, July.
    12. N/A, 2004. "Index for 2004," European Union Politics, , vol. 5(4), pages 511-512, December.
    13. Maria Portela & Emmanuel Thanassoulis, 2006. "Malmquist Indexes Using a Geometric Distance Function (GDF). Application to a Sample of Portuguese Bank Branches," Journal of Productivity Analysis, Springer, vol. 25(1), pages 25-41, April.
    14. Portela, Maria Conceição A. Silva & Thanassoulis, Emmanuel, 2014. "Economic efficiency when prices are not fixed: disentangling quantity and price efficiency," Omega, Elsevier, vol. 47(C), pages 36-44.
    15. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    16. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    17. Johnes, Jill, 2006. "Data envelopment analysis and its application to the measurement of efficiency in higher education," Economics of Education Review, Elsevier, vol. 25(3), pages 273-288, June.
    18. Haney, A.B. & Pollitt, M.G., 2012. "International benchmarking of Electricity Transmission by Regulators: Theory and Practice," Cambridge Working Papers in Economics 1254, Faculty of Economics, University of Cambridge.
    19. Fare, Rolf & Grosskopf, Shawna, 1992. "Malmquist Productivity Indexes and Fisher Ideal Indexes," Economic Journal, Royal Economic Society, vol. 102(410), pages 158-160, January.
    20. Johnes, Jill, 2006. "Measuring teaching efficiency in higher education: An application of data envelopment analysis to economics graduates from UK Universities 1993," European Journal of Operational Research, Elsevier, vol. 174(1), pages 443-456, October.
    21. Camanho, A.S. & Dyson, R.G., 2008. "A generalisation of the Farrell cost efficiency measure applicable to non-fully competitive settings," Omega, Elsevier, vol. 36(1), pages 147-162, February.
    22. Brennan, Shae & Haelermans, Carla & Ruggiero, John, 2014. "Nonparametric estimation of education productivity incorporating nondiscretionary inputs with an application to Dutch schools," European Journal of Operational Research, Elsevier, vol. 234(3), pages 809-818.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Walheer, Barnabé, 2018. "Disaggregation of the cost Malmquist productivity index with joint and output-specific inputs," Omega, Elsevier, vol. 75(C), pages 1-12.
    2. Fang, Lei, 2022. "Measuring and decomposing group performance under centralized management," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1006-1013.
    3. Matthias Klumpp, 2018. "How to Achieve Supply Chain Sustainability Efficiently? Taming the Triple Bottom Line Split Business Cycle," Sustainability, MDPI, vol. 10(2), pages 1-23, February.
    4. Aparicio, Juan & Santin, Daniel, 2018. "A note on measuring group performance over time with pseudo-panels," European Journal of Operational Research, Elsevier, vol. 267(1), pages 227-235.
    5. Casu, Barbara & Ferrari, Alessandra & Girardone, Claudia & Wilson, John O.S., 2016. "Integration, productivity and technological spillovers: Evidence for eurozone banking industries," European Journal of Operational Research, Elsevier, vol. 255(3), pages 971-983.
    6. Juan Aparicio & Sergio Perelman & Daniel Santín, 2022. "Comparing the evolution of productivity and performance gaps in education systems through DEA: an application to Latin American countries," Operational Research, Springer, vol. 22(2), pages 1443-1477, April.
    7. Aparicio, Juan & Crespo-Cebada, Eva & Pedraja-Chaparro, Francisco & Santín, Daniel, 2017. "Comparing school ownership performance using a pseudo-panel database: A Malmquist-type index approach," European Journal of Operational Research, Elsevier, vol. 256(2), pages 533-542.
    8. Barnabé Walheer, 2018. "Cost Malmquist productivity index: an output-specific approach for group comparison," Journal of Productivity Analysis, Springer, vol. 49(1), pages 79-94, February.
    9. Chen, Xiang & Grifell-Tatjé, Emili & Fu, Tsu-Tan, 2023. "A profit difference decomposition model for measuring group performance: an application to Chinese and Taiwanese commercial banks," Omega, Elsevier, vol. 120(C).
    10. Reza Fallahnejad & Mohammad Reza Mozaffari & Peter Fernandes Wanke & Yong Tan, 2024. "Nash Bargaining Game Enhanced Global Malmquist Productivity Index for Cross-Productivity Index," Games, MDPI, vol. 15(1), pages 1-21, January.
    11. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    12. Balk, B.M. & Zofío, J.L., 2018. "The Many Decompositions of Total Factor Productivity Change," ERIM Report Series Research in Management ERS-2018-003-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    13. Delimiro Visbal-Cadavid & Mónica Martínez-Gómez & Francisco Guijarro, 2017. "Assessing the Efficiency of Public Universities through DEA. A Case Study," Sustainability, MDPI, vol. 9(8), pages 1-19, August.
    14. Kwaku Ohene-Asare & Jones Kofi Anyimadu Asare & Charles Turkson, 2019. "Dynamic cost productivity and economies of scale of Ghanaian insurers," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 148-177, January.
    15. Matthias Klumpp, 2017. "Do Forwarders Improve Sustainability Efficiency? Evidence from a European DEA Malmquist Index Calculation," Sustainability, MDPI, vol. 9(5), pages 1-33, May.
    16. Barnabé Walheer, 2022. "Global Malmquist and cost Malmquist indexes for group comparison," Journal of Productivity Analysis, Springer, vol. 58(1), pages 75-93, August.
    17. Ali Homayoni & Reza Fallahnejad & Farhad Hosseinzadeh Lotfi, 2022. "Cross Malmquist Productivity Index in Data Envelopment Analysis," 4OR, Springer, vol. 20(4), pages 567-602, December.
    18. Martin Boďa & Mariana Považanová, 2020. "Productivity patterns in Europe: adaptation of the Malmquist index to measuring group performance and productivity change over time," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 949-989, November.
    19. Michael L. Polemis & Mike G. Tsionas, 2022. "Endogenous productivity: a new Bayesian perspective," Annals of Operations Research, Springer, vol. 318(1), pages 425-451, November.
    20. Hatami-Marbini, Adel & Arabmaldar, Aliasghar, 2021. "Robustness of Farrell cost efficiency measurement under data perturbations: Evidence from a US manufacturing application," European Journal of Operational Research, Elsevier, vol. 295(2), pages 604-620.
    21. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    22. Polcyn, Jan, 2017. "Edukacja jako dobro publiczne - próba kwantyfikacji [Education as a public good – an attempt at quantification]," MPRA Paper 76606, University Library of Munich, Germany, revised 2017.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kristof De Witte & Laura López-Torres, 2017. "Efficiency in education: a review of literature and a way forward," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 339-363, April.
    2. Santos, Sérgio P. & São José, José M.S., 2018. "Measuring and decomposing the gender pay gap: A new frontier approachAuthor-Name: Amado, Carla A.F," European Journal of Operational Research, Elsevier, vol. 271(1), pages 357-373.
    3. Zhao, Yu & Morita, Hiroshi & Maruyama, Yukihiro, 2019. "The measurement of productive performance with consideration for allocative efficiency," Omega, Elsevier, vol. 89(C), pages 21-39.
    4. Tsui-Yueh Cho & Tsai-Yi Wang, 2018. "Estimations of cost metafrontier Malmquist productivity index: using international tourism hotels in Taiwan as an example," Empirical Economics, Springer, vol. 55(4), pages 1661-1694, December.
    5. Aparicio, Juan & López-Torres, Laura & Santín, Daniel, 2018. "Economic crisis and public education. A productivity analysis using a Hicks-Moorsteen index," Economic Modelling, Elsevier, vol. 71(C), pages 34-44.
    6. Barnabé Walheer, 2018. "Cost Malmquist productivity index: an output-specific approach for group comparison," Journal of Productivity Analysis, Springer, vol. 49(1), pages 79-94, February.
    7. O'Neill, Liam & Rauner, Marion & Heidenberger, Kurt & Kraus, Markus, 2008. "A cross-national comparison and taxonomy of DEA-based hospital efficiency studies," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 158-189, September.
    8. Aparicio, Juan & Ortiz, Lidia & Santín, Daniel, 2021. "Comparing group performance over time through the Luenberger productivity indicator: An application to school ownership in European countries," European Journal of Operational Research, Elsevier, vol. 294(2), pages 651-672.
    9. Xiang Chen, 2018. "An allocation productivity indicator: Application in Taiwanese banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(5), pages 1-2.
    10. Walheer, Barnabé, 2018. "Disaggregation of the cost Malmquist productivity index with joint and output-specific inputs," Omega, Elsevier, vol. 75(C), pages 1-12.
    11. Jia-Ching Juo & Yu-Hui Lin & Tsai-Chia Chen, 2015. "Productivity change of Taiwanese farmers’ credit unions: a nonparametric metafrontier Malmquist–Luenberger productivity indicator," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 125-147, March.
    12. José Manuel Cordero & Daniel Santín & Rosa Simancas, 2017. "Assessing European primary school performance through a conditional nonparametric model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 364-376, April.
    13. Tsui‐Yueh Cho, 2020. "Cost metafrontier approach for measuring the Malmquist productivity index: An example of bank groups formed after the financial reform in Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 25(4), pages 475-494, October.
    14. Mei-Ying Huang & Jia-Ching Juo & Tsu-tan Fu, 2015. "Metafrontier cost Malmquist productivity index: an application to Taiwanese and Chinese commercial banks," Journal of Productivity Analysis, Springer, vol. 44(3), pages 321-335, December.
    15. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    16. Jill Johnes, 2006. "Measuring Efficiency: A Comparison of Multilevel Modelling and Data Envelopment Analysis in the Context of Higher Education," Bulletin of Economic Research, Wiley Blackwell, vol. 58(2), pages 75-104, April.
    17. Sahoo, Biresh K. & Mehdiloozad, Mahmood & Tone, Kaoru, 2014. "Cost, revenue and profit efficiency measurement in DEA: A directional distance function approach," European Journal of Operational Research, Elsevier, vol. 237(3), pages 921-931.
    18. Stefan Seifert, 2015. "Measuring Productivity When Technologies Are Heterogeneous: A Semi-Parametric Approach for Electricity Generation," Discussion Papers of DIW Berlin 1526, DIW Berlin, German Institute for Economic Research.
    19. Alexandros Maziotis & Ramon Sala-Garrido & Manuel Mocholi-Arce & Maria Molinos-Senante, 2021. "Changes to The Productivity of Water Companies: Comparison of Fully Private and Concessionary Water Companies," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(10), pages 3355-3371, August.
    20. Jamasb, Tooraj & Pollitt, Michael & Triebs, Thomas, 2008. "Productivity and efficiency of US gas transmission companies: A European regulatory perspective," Energy Policy, Elsevier, vol. 36(9), pages 3398-3412, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:241:y:2015:i:3:p:796-805. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.