Measuring input-specific productivity change based on the principle of least action

Juan Aparicio , Magdalena Kapelko , Bernhard Mahlberg , Jose L. Sainz-Pardo

Abstract

In for-profit organizations, efficiency and productivity measurement with reference to the potential for input-specific reductions is particularly important and has been the focus of interest in the recent literature. Different approaches can be formulated to measure and decompose input-specific productivity change over time. In this paper, we highlight some problems within existing approaches and propose a new methodology based on the Principle of Least Action. In particular, this model is operationalized in the form of a non-radial Luenberger productivity indicator based on the determination of the least distance to the strongly efficient frontier of the considered production possibility sets, which are estimated by non-parametric techniques based upon Data Envelopment Analysis. In our approach, overall productivity change is the sum of input-specific productivity changes. Overall productivity change and input-specific changes are broken up into indicators of efficiency change and technical change. This decomposition enables the researcher to quantify the contributions of each production factor to productivity change and its components. In this way, the drivers of productivity development are revealed. For illustration purposes the new approach is applied to a recent dataset of Polish dairy processing firms
Author Juan Aparicio - [Universidad Miguel Hernandez de Elche]
Juan Aparicio,,
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, Magdalena Kapelko (MISaF / IZM / KL)
Magdalena Kapelko,,
- Katedra Logistyki
, Bernhard Mahlberg - [Institute for Industrial Research]
Bernhard Mahlberg,,
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, Jose L. Sainz-Pardo - [Universidad Miguel Hernandez de Elche]
Jose L. Sainz-Pardo,,
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Journal seriesJournal of Productivity Analysis, ISSN 0895-562X, e-ISSN 1573-0441, (A 25 pkt)
Issue year2017
Vol47
No1
Pages17-31
Publication size in sheets0.75
Keywords in Englishdata envelopment analysis, weighted additive model, closest targets, Input-specific, productivity change
ASJC Classification2002 Economics and Econometrics; 3301 Social Sciences (miscellaneous); 1403 Business and International Management
DOIDOI:10.1007/s11123-016-0488-9
URL http://link.springer.com/journal/11123/47/1/page/1
Languageen angielski
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Aparicio_Kapelko_Mahlberg_Sainz-Pardo_Measuring_input-speci2017.pdf 621,51 KB
Score (nominal)25
Publication indicators Scopus Citations = 1; WoS Citations = 1; Scopus SNIP (Source Normalised Impact per Paper): 2017 = 1.467; WoS Impact Factor: 2017 = 1.267 (2) - 2017=1.856 (5)
Citation count*5 (2019-12-06)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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