How to calculate MetaFrontier Malmquist and its
components using MaxDEA?
The MetaFrontier Malmquist proposed by Oh
& Lee (2010) is essentially the same as the Global Malmquist proposed by Pastor & Lovell (2005).
Their difference is that Oh & Lee (2010) add a
"Group" factor to the Global Malmquist.
After introducing such a group factor, the MetaFrontier
Malmquist is decomposed as follows.
MetaFrontier Malmquist = EC * BPC * TGC
Where MetaFrontier
Malmquist = Global Malmquist
without grouping
EC= Efficiecncy Change using traditional contemporaneous Malmquist method within
a group
BPC= Technological
Change using global Malmquist method within a group
TGC = MetaFrontier Malmquist/ EC / BPC
Using MaxDEA 5.2, the MetaFrontier Malmquist and its components can be calculated as follows.
1)
MetaFrontier Malmquist = “Malmquist Index”
in Global Malmquist
model (analyze all groups as a whole);
2)
EC = “Efficiency
Change” in Global Malmquist model (analyze each group one by one);
3)
BPC = “Technological Change” in Global
Malmquist model (analyze each group one by one);
4)
TGC = MetaFrontier
Malmquist/ EC / BPC.
Using MaxDEA 6.0, the MetaFrontier Malmquist and its components can also be calculated in a
batch mode as follows.
1)
A Group variable must be added in the
dataset. It should be defined as "Cluster" in the "Data
Definition" window;
2)
MetaFrontier Malmquist = “Malmquist Index”
in Global Malmquist
model (analyze all groups as a whole);
3)
EC = “Efficiency
Change” in Global Malmquist model in conjunction with “Benchmarking by
Cluster - Self-benchmarking” method;
4)
BPC = “Technological Change” in Global
Malmquist model in conjunction with “Benchmarking by Cluster - Self-benchmarking” method;
5)
TGC = MetaFrontier
Malmquist/ EC / BPC.
References
MetaFrontier Malmquist
Oh
D-h, Lee J-d. A metafrontier approach for measuring Malmquist productivity index. Empirical Economics, 2010,
38(1): 47-64.
Contemporaneous/Adjacent Malmquist
Färe R, Grosskopf S, Lindgren B, Roos P. Productivity changes in Swedish pharamacies
1980–1989: A non-parametric Malmquist approach. J
Prod Anal, 1992, 3(1-2): 85-101.
Global Malmquist
Pastor J T, Lovell C A K. A global Malmquist
productivity index. Economics Letters, 2005, 88(2): 266-71.