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Original Articles

Scale and the Malmquist productivity index

Pages 593-596 | Published online: 06 Oct 2010
 

Abstract

The Malmquist index has gained acceptability in empirical analyses of productivity in recent years. Some question has been raised concerning the index's ability to accurately portray productivity change in the presence of nonconstant returns to scale. This letter demonstrates that the index does accurately measure productivity change under an appropriate characterization of technology.

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