Abstract

This paper shows that the Bennet-Bowley profit indicator is an exact and superlative approximation of the additively complete Luenberger-Hicks-Moorsteen productivity indicator when the input and output directional distance functions can be represented up to the second order by a quadratic functional form. It also establishes the conditions under which the exact and superlative measures of the Luenberger productivity indicator and Luenberger-Hicks-Moorsteen productivity indicator coincide.

Keywords

Bennet-Bowley, difference-based indicator, total factor productivity, exact and superlative approximation

Published in

Working paper series / Swedish University of Agricultural Sciences, Department of Economics
2017, number: 2017:01
Publisher: Department of Economics, Swedish University of Agricultural Sciences

Authors' information