RT Journal Article
T1 Global and local technical changes: a new decomposition of the Malmquist productivity index using virtual units
A1 Aparicio, Juan
A1 Santín González, Daniel
AB In estimating productivity change over time, technical change is frequently miscalculated as the geometric average of technological changes between two periods based on firm-specific information in the dataset. However, the frontier shift over time is a global phenomenon linked to relative technological progress or regress across the entire frontiers. In this paper, we fill this gap by determining the technical change using synthetic observations generated at random within a unit hypercube and calculating the distances between them and the two frontiers being evaluated. Accordingly, we propose a decomposition of the Malmquist index's traditional technical change into two components: average global technical change, which is shared by all production units, and local technical change, which captures how each firm experiences global technical change. In this way, our approach establishes a new research avenue in production economics based on using randomly generated virtual points to assess overall phenomena.
PB Elsevier
SN 0264-9993
YR 2024
FD 2024-02-16
LK https://hdl.handle.net/20.500.14352/102424
UL https://hdl.handle.net/20.500.14352/102424
LA eng
NO Aparicio, J., & Santín, D. (2024). Global and local technical changes: A new decomposition of the Malmquist productivity index using virtual units. Economic Modelling, 134(2), 106674.
NO Chair of Economic Model Transformation of the Department of Finance, Economy, and Public Administration (Conselleria d’Hisenda, Economia i Administracio Publica) of the Valencian Government.
DS Docta Complutense
RD 5 abr 2025