Title: Measurement of productivity index with dynamic DEA

Authors: Ali Emrouznejad, Emmanuel Thanassoulis

Addresses: Operations and Information Management Group, Aston Business School, Aston University, Birmingham B4 7ET, UK. ' Operations and Information Management Group, Aston Business School, Aston University, Birmingham B4 7ET, UK

Abstract: Fare, Grosskopf, Norris and Zhang developed a non-parametric productivity index, Malmquist index, using data envelopment analysis (DEA). The Malmquist index is a measure of productivity progress (regress) and it can be decomposed to different components such as |efficiency catch-up| and |technology change|. However, Malmquist index and its components are based on two period of time which can capture only a part of the impact of investment in long-lived assets. The effects of lags in the investment process on the capital stock have been ignored in the current model of Malmquist index. This paper extends the recent dynamic DEA model introduced by Emrouznejad and Thanassoulis and Emrouznejad for dynamic Malmquist index. This paper shows that the dynamic productivity results for Organisation for Economic Cooperation and Development countries should reflect reality better than those based on conventional model.

Keywords: mathematical modelling; data envelopment analysis; Malmquist index; productivity index; OECD; dynamic DEA; Organisation for Economic Cooperation and Development.

DOI: 10.1504/IJOR.2010.033140

International Journal of Operational Research, 2010 Vol.8 No.2, pp.247 - 260

Published online: 09 May 2010 *

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