Abstract

The technological change component of the Malmquist productivity index is defined as the radial distance between isoquants along a single direction. Therefore, it relies on limited information to measure technological change, which is a naturally global phenomenon. This becomes problematic, particularly when technological change is not Hicks-neutral but biased towards certain inputs or outputs. To mitigate this problem, I propose a more global measure of technological change that uses two directions. When combined with existing measures of other contributing factors, this measure constitutes an alternative productivity index, which is the geometric mean of the Malmquist and Hicks–Moorsteen productivity indices based on the cone technologies.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.