A parametric decomposition of a generalized malmquist-type productivity index

Abstract

This paper provides a parametric method of decomposing a generalized Malmquist-type productivity index into terms related to technical change, technical efficiency changes and returns to scale. The decomposition is based on parametric estimation of translog output-oriented distance functions and draws on the socalled exact index number approach to the derivation of productivity change measures. An empirical application using panel data from Spanish savings banks is included.