Please cite this article as: Mayer, A., Zelenyuk, V., Aggregation of Malmquist productivity indexes allowing for reallocation of resources, European Journal of Operational Research (2014), doi: http://dx.doi.org/10.1016/j.ejor.
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Aggregation of Malmquist productivity indexes allowing for reallocation of resourcesAndreas Mayer 1 , Valentin Zelenyuk 2, *
AbstractIn this paper we consider aggregate Malmquist productivity index measures which allow inputs to be reallocated within the group (when in output orientation). This merges the single period aggregation results allowing input reallocation of Nesterenko & Zelenyuk (2007) with the aggregate Malmquist productivity index results of Zelenyuk (2006) to determine aggregate Malmquist productivity indexes that are justified by economic theory, consistent with previous aggregation results, and which maintain analogous decompositions to the original measures. Such measures are of direct relevance to firms or countries who have merged (making input reallocation possible), allowing them to measure potential productivity gains and how these have been realised (or not) over time.