TY - RPRT
N2 - This paper demonstrates the sensitivity of the linear programming approach in the estimation of productivity measures in the primal framework using Malmquist productivity index and Malmquist total factor productivity index models. Specifically, the sensitivity of productivity measure to the number of constraints (level of dis-aggregation) and imposition of returns to scale constraints of linear programing is evaluated. Further, the shadow or dual values are recovered from the linear program and compared to the market prices used in the ideal Fisher index approach to illustrate sensitivity. Empirical application to U.S. state-level time series data from 1960-2004 reveal productivity change decreases with increases in the number of constraints. Further, the input and output shadow or dual values are skewed, leading to the difference in the productivity measures due to aggregation.
AB - This paper demonstrates the sensitivity of the linear programming approach in the estimation of productivity measures in the primal framework using Malmquist productivity index and Malmquist total factor productivity index models. Specifically, the sensitivity of productivity measure to the number of constraints (level of dis-aggregation) and imposition of returns to scale constraints of linear programing is evaluated. Further, the shadow or dual values are recovered from the linear program and compared to the market prices used in the ideal Fisher index approach to illustrate sensitivity. Empirical application to U.S. state-level time series data from 1960-2004 reveal productivity change decreases with increases in the number of constraints. Further, the input and output shadow or dual values are skewed, leading to the difference in the productivity measures due to aggregation.
T1 - Aggregation Issues in the Estimation of Linear Programming Productivity Measures
DA - 2011-03
DA - 2011-03
AU - Shaik, Saleem
AU - Mishra, Ashok K.
AU - Atwood, Joseph A.
L1 - http://ageconsearch.umn.edu/record/101783/files/AAE673.pdf
LA - en
PY - 2011-03
PY - 2011-03
ID - 101783
L4 - http://ageconsearch.umn.edu/record/101783/files/AAE673.pdf
KW - Agribusiness
KW - Production Economics
KW - Aggregation
KW - Share-weights
KW - single and multiple output and input
KW - Malmquist productivity index
KW - Malmquist total factor productivity index
TI - Aggregation Issues in the Estimation of Linear Programming Productivity Measures
Y1 - 2011-03
L2 - http://ageconsearch.umn.edu/record/101783/files/AAE673.pdf
LK - http://ageconsearch.umn.edu/record/101783/files/AAE673.pdf
UR - http://ageconsearch.umn.edu/record/101783/files/AAE673.pdf
ER -