Machine learningProductivity Analysis
Malmquist-Luenberger Productivity Indicator
The Malmquist-Luenberger (ML) Productivity Index combines concepts from the Malmquist index and Luenberger's directional distance functions to measure total factor productivity (TFP) change over time. It decomposes productivity growth into technical efficiency change and technological progress, enabling comprehensive productivity assessment without requiring specific functional form assumptions.
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Sources
- Malmquist, S. (1953). Index numbers and indifference surfaces. Trabajos de Estadistica y de Investigacion Operativa, 4(2), 209-242. DOI: 10.1007/BF03006863 ↗
- Luenberger, D. G. (1992). New optimality conditions for stochastic control problems. Mathematics of Operations Research, 17(3), 657-663. DOI: 10.1287/moor.17.3.657 ↗
- Chambers, R. G., Chung, Y., & Färe, R. (1996). Benefit and distance functions. Journal of Economic Theory, 70(2), 407-419. DOI: 10.1006/jeth.1996.0096 ↗