Bert M. Balk

Scale Efficiency and Productivity Change

Thefirst objective of this paper is to develop a generic measureof scale efficiency for a multiple-input multiple-output firm,using basic principles of modern production theory. The secondobjective is to combine measures of technological change, technicalefficiency change, and scale efficiency change into an encompassing(primal) measure of productivity change. This measure and itsdecomposition is compared to a number of recent proposals inorder to shed light on what seems to have become a controversialissue. The paper proceeds by developing an encompassing dualmeasure of productivity change. This dual measure is then appliedto panel data of a set of Dutch firms, continuing the empiricalwork of Balk (1998). It turns out that extending the Malmquistproductivity index with factors measuring scale efficiency changeand input mix change leads to appreciably different outcomes.

The Residual: On Monitoring and Benchmarking Firms, Industries, and Economies with Respect to Productivity

Productivity is an important component of profitability, and therefore an important variable for monitoring and benchmarking exercises. This survey discusses the basic accounting model as well as the various measurement problems one gets involved in. By virtue of its structural features, this model is applicable to individual firms and aggregates such as industries or economies.Though the measurement of productivity change and productivity differences is important, still more important is their explanation. Thus, first, this article reviews recent results relating to the decomposition of aggregate productivity change into components due to firm dynamics and intra-firm productivity change, results which were obtained by studying longitudinal enterprise microdata sets. Second, this article reviews a number of methods for decomposing productivity change and productivity differences, whether at the individual firm level or at aggregate level, into partial measures relating to technological change and efficiency change. The combination of both research strategies seems to be a promising undertaking.

On using DEA for benchmarking container terminals

Purpose – The purpose of this paper is to compare efficiency scores from the benchmarking exercise with those of previous studies and to discuss the reasons behind diverging results.Design/methodology/approach – This paper uses data envelopment analysis (DEA) on primary data of large container terminals.Findings – The results differ strongly from those available in the literature. Causes for these differences are: public (secondary) data are not always accurate; different terminal types are compared; terminals of different scale are compared; and terminals are mixed with ports.Practical implications – DEA may be appropriate for container terminal benchmarking, but only if better quality and additional input and output data can be obtained. In its application, the analysis should be controlled for terminal types.Originality/value – Summary of the state of play in the use of DEA methodologies for comparing the efficiency of container terminals at ports.

On the Relation Between Gross-Output and Value-Added Based Productivity Measures: The Importance of the Domar Factor

In this paper I consider the relation between gross-output and valueadded based total factor productivity (TFP) measures. It appears that, without requiring any (micro-)economic theory, a conditional relationship between TFP indexes can be derived, in which the Domar factor plays an important role. At the same time it turns out that gross-output and value-added based TFP indicators (dierence type measures) always coincide. In the Divisia index framework and The views expressed in this paper are those of the author and do not necessarily reflect any policy of Statistics Netherlands. Earlier versions were presented at the 8th European Workshop on Eciency

AN ASSUMPTION-FREE FRAMEWORK FOR MEASURING PRODUCTIVITY CHANGE

The measurement of productivity change (or difference) is usually based on models that make use of strong assumptions such as competitive behavior and constant returns to scale. This survey discusses the basics of productivity measurement and shows that one can dispense with most if not all of the usual, neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.

A new, transitive productivity index

The Malmquist productivity index is not transitive. This paper argues that, instead of trying to accommodate this two-period concept to a multi-period setting, it is preferable to look at the measurement of productivity, efficiency, and technical change in a multi-period setting from the outset. A new, transitive productivity index is developed with as by-product a measure of the non-neutrality of technical change. The various indices are illustrated on panel data of Swedish pharmacies.

A Characterization of the Tornqvist Price Index

̈ This note provides an axiomatic characterization of the Tornqvist price index.  2001 Elsevier Science B.V. All rights reserved. ̈

The decomposition of cost efficiency and the canonical form of cost function and cost share equations

Abstract This article discusses the decomposition of cost efficiency into parts relating to (input or output) technical efficiency and input allocative efficiency. It derives the canonical forms for the specification of cost function and cost share estimation equations in the presence of technical and allocative inefficiency, and in doing so integrates some hitherto unrelated lines of research.

Approximating a cost-of-living index from demand functions: A retrospect

Abstract This paper discusses several methods for approximating a cost-of-living index that are based on knowledge of the demand functions. Centered around a recently discovered article by Malmquist, it discusses the mean of over- and undercompensation, Frischs Double Expenditure method, and some proposals of Vartia.

Measuring and Decomposing Capital Input Cost

The measurement of total factor productivity change (or difference) vis‐a‐vis labor productivity change crucially depends on the measurement and decomposition of capital input cost. This paper discusses the basics of its measurement and shows that one can dispense with the usual neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.