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Report, 2017

Exact and superlative measurement of the Luenberger-Hicks-Moorsteen productivity indicator

Ang, Frederic; Kerstens, Pieter Jan

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

Swedish University of Agricultural Sciences, Department of Economics
Kerstens, Pieter Jan
University of Leuven (KU Leuven)

UKÄ Subject classification

Economics

URI (permanent link to this page)

https://res.slu.se/id/publ/79464