2013
DOI: 10.1016/j.ejor.2013.03.031
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On the inconsistency of the Malmquist–Luenberger index

Abstract: Apart from the well-known weaknesses of the standard Malmquist productivity index related to infeasibility and not accounting for slacks, already addressed in the literature, we identify a new and significant drawback of the Malmquist-Luenberger index decomposition that questions its validity as an empirical tool for environmental productivity measurement associated with the production of bad outputs. In particular, we show that the usual interpretation of the technical change component in terms of production … Show more

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Cited by 75 publications
(39 citation statements)
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“…This could help management team detect any possible shortcoming in the system and provide possible solution strategies. The results of this survey are consistent with other existing works in the literature (Aparicio et al, 2013;Ahn & Min, 2014;Gharneh et al, 2014;Kerstens & Van de Woestyne, 2014).…”
Section: Discussionsupporting
confidence: 82%
See 1 more Smart Citation
“…This could help management team detect any possible shortcoming in the system and provide possible solution strategies. The results of this survey are consistent with other existing works in the literature (Aparicio et al, 2013;Ahn & Min, 2014;Gharneh et al, 2014;Kerstens & Van de Woestyne, 2014).…”
Section: Discussionsupporting
confidence: 82%
“…There are several applications of Malmquist productivity index (Aparicio et al, 2013;Kerstens & Van de Woestyne, 2014). Woo et al (2015) investigated the environmental efficiency of renewable energy from the static as well as the dynamic perspective in 31 OECD countries to learn more about the effect of renewable energy across countries.…”
Section: Introductionmentioning
confidence: 99%
“…However, the geometric mean form of the MLPI has some drawbacks: it is not circular or transitive and it may face problems of spurious technical regress and linear programming infeasibility when measuring cross-period DDFs [32,44]. Based on this, a global benchmark technology should be defined as P G = P 1 ∪ P 2 ∪ P 3 .…”
Section: Ddf and Gml Productivity Indexmentioning
confidence: 99%
“…The Malmquist-Luenberger productivity index (MLPI), which is introduced by Chung, Färe and Grosskopf [6] and calculated by using the estimated DDF scores, is widely used to measure productivity change or green TFP because it incorporates undesirable output production [3], though it has an inconsistency problem [19]. Chen and Golley [3] used MLPI to evaluate the changing patterns of "green" TFP growth of 38 Chinese industrial sectors during the period 1980-2010.…”
Section: Literaturementioning
confidence: 99%