Hicks-Moorsteen Total Factor Productivity Index Research Articles

Measuring public primary education productivity across Mexican states using a Hicks-Moorsteen index

ABSTRACT Despite the importance of analysing how an educational system works across regions, there is a lack of research benchmarking regions’ performance over time. The aim of this research is to measure total factor productivity changes (TFPC) in the primary education sector across 30 Mexican states over eight academic years from 2006–07 to 2013–14. To do this, we calculate the Hicks-Moorsteen total factor productivity index (HMTFP) using information on third-grade primary education students attending publicly funded schools. We also explore the main environmental factors behind these differences in productivity. Estimates for the analysed period show an average positive TFPC of 1.91%, driven by technological progress. We also find a significant positive effect on productivity when the policy party governing at the federal and the state levels coincide. The paper concludes by pointing out the need to use school-level data to monitor and evaluate the education systems as an indispensable element for delivering efficient and effective public administration services to citizens.

Total factor productivity of cultivated land use in China under environmental constraints: temporal and spatial variations and their influencing factors.

The continuous decline in the resource and environment-carrying capacity of cultivated land resources has seriously threatened the sustainable supply of cultivated land resources in China. Using the Hicks-Moorsteen total factor productivity index method, we examine the total factor productivity of cultivated land use (CL-TFP) in China from 2003 to 2017 under environmental constraints. We further use a panel Tobit model to estimate the effect of its influencing factors. The results show that the CL-TFP presents a fluctuating upward trend and reaches data envelopment analysis (DEA) efficiency during the sample period. The regional results reveal a significant spatial difference, especially in the mid-west region, which fails to reach DEA efficiency. China's main cultivated land did not realize economies of scale. The phenomenon of spatial polarization in what we refer to as very low-value areas and very high-value areas is clear, and the changes are gradual. Regarding the determinative influencing factors, results from the panel Tobit model show that cultivated land usage tax and environmental pollution control investment have no significant effect on CL-TFP, while income level and agricultural intermediate consumption do have a positive effect on CL-TFP. The empirical evidence can help policymakers craft and frame effective policies that improve the utilization efficiency of China's cultivated land resources.

Sri Lanka’s Total Factor Productivity Change during Conflict and Post-Conflict Periods

This study analyses Sri Lanka’s Total Factor Productivity (TFP) change during conflict and post-conflict periods to assess whether there has been any improvement during the post-conflict period using Solow’s Residual Method (SRM)) and an index number approach (Hicks-Moorsteen Total Factor Productivity Index - HMTFPI). Findings of both approaches reveal that the TFP growth during the conflict period was higher than that of the post-conflict period. Based on the decomposition of HMTFPI into Technological Change (TC) and Efficiency Change (EC) indices, it was revealed that the main source of TFP change throughout the sample period is TC. EC had been negative throughout the sample period.

Productivity Assessment of Coal-Fired Thermal Power Plants: An Application of Hicks-Moorsteen Total Factor Productivity Index

In this paper, both technical and technological efficiency of Indian coal-fired power plants is studied using Hicks-Moorsteen Total Factor Productivity Index. Out of seventy-four, six power plants, i.e., Chandrapura, Dahanu, Korba-west, Ramagundem–B, Rayalaseema and Talcher, have achieved positive growth in all the indexes of productivity. 43.24% of power plants saw the average TFP growth of 20.2% while remaining observed a negative average change of -14.9%. Further, the outcome of this study shows that central-owned power generation plants have outperformed in all the efficiency indexes as compared to private and state-owned power plants

Economic size of farms and adjustments of the total factor productivity to the business cycle in Polish agriculture

The article presents an approach to changes in the total factor productivity (TFP) which differs from that generally found in the literature. Changes are calculated in the real terms using the detailed input-output matrices for representative farms in Poland, for different economic size classes, in the years 2007–2013. Input-output matrices were used for the decomposition of the Hicks-Moorsteen TFP index. The goal is to evaluate changes in the real TFP in the downturn and recovery phases of the business cycle in agriculture. It was found that the reaction of TFP to business cycle changes on “small”, “medium” and even “large” family farms in Poland is diametrically opposite to that observed in the case of large-scale farms. More than 90% of farms in Poland (except for the largest) increase technical productivity in the conditions of the economic downturn and lower it in the conditions of the economic recovery. Such behaviour is pro-cyclic and irrational, alluding to the 17th-century King’s effect, which is vanishing in the agricultural systems of highly developed countries. The hypothesis is proposed that the size of the price expectation error which causes that effect is negatively correlated with the economic size of the farm, but at the same time it is proportional to the percentage of agricultural income obtained from subsidies and other payments under the SAPS system.

Efficiency and Productivity Changes of the Malaysian Community Colleges

The main aim of this study is to develop theoretical framework that can investigate the measurement of productivity changes in higher education sector particularly in the Malaysian community colleges institutions from 2007 to 2010. By measuring technical efficiency and productivity changes among community colleges in Malaysia, this study aims to address three main research questions related to the college community sector: a) What is the mean efficiency score of college community institutions in Malaysia? b) What is the total factor productivity (TFP) change for Malaysia’s community colleges institutions? c) Has the implementation of the National Higher Education Strategic Plan (NHESP) led to improvements in the efficiency and productivity of the college community sector? In this study, a non-parametric approach known as Data Envelopment Analysis (DEA) is applied to the inputs and outputs of Malaysian community colleges to analyses empirically their technical efficiency and productivity. Furthermore, this study is also the first that intend to build theoretical frameworks that employ a comprehensive decomposition of the Hicks-Moorsteen TFP index, developed and explore the consequences of NHESP on productivity changes in Malaysian community college over the period of 2007-2010.

Measuring the Development of Efficiency and Productivity of Banks in the Visegrad Group: An Application of Hicks-Moorsteen Total Factor Productivity index

The research on the banking efficiency all around the world has been one of the main topics for the international financial sectors over the last years. The special case is in Europe. Some of the countries are in the European Union. The European Commission creates the rules for safer and sounder financial sector in these countries. In the past, these rules brought a lot of controversy whether they help to all countries in the European Union or just some of them. The purpose of this article is to determine the development of different types of efficiencies for banking industry in the Visegrad Group. Generally, the development is measured by the Malmquist approach. Different type of index is used in this article, more precisely the Hicks-Moorsteen Total Factor Productivity index. It is one of the alternative indexes. The results have showed that the model with the variable return to scale assumption is better for the use in banking industry in the Visegrad Group, as this model is more precise about the results.

Measuring the Development of Efficiency and Productivity of Banks in the Visegrad Group: An Application of Hicks-Moorsteen Total Factor Productivity index

Measuring the Development of Efficiency and Productivity of Banks in the Visegrad Group: An Application of Hicks-Moorsteen Total Factor Productivity index

Measuring productivity change in higher education: an application of Hicks–Moorsteen total factor productivity index to Malaysian public universities

This paper offers an in-depth analysis of efficiency and productivity changes using the Hicks–Moorsteen total factor productivity index, in the context of higher education institutions. Unlike the Malmquist method, this approach makes no assumptions about firms' returns to scale conditions. We assume that the production technology exhibits variable returns to scale, which is more plausible than the constant returns to scale assumption, because universities usually operate at suboptimal scales. Three major groupings of Malaysian public universities are used in our case study: research, comprehensive, and focused universities. The results show that technical efficiency has improved after the 2007 National Higher Education Strategic Plan within all the three university groupings.

Analysing banks’ intermediation and operational performance using the Hicks–Moorsteen TFP index: The case of Iran

In order to analyse the impact of policy reforms on the performance of the banking sector in Iran we present a decomposition of the Hicks–Moorsteen Total Factor Productivity (TFP). This entails a comparison of both the intermediate and operating performances of different types of banks in the pre- and post-reform eras. Our results show that under the intermediation approach, state-owned banks (public banks) were considerably more efficient than private banks in the post-regulation period. In contrast, under the operating approach, private banks were fully technically efficient and mix efficient in both pre and post-reform eras. This paper highlights the importance of analysing performance from multiple perspectives. The findings reflect public banks’ mission to maximise loans to target groups while private banks are motivated more by financial profit.