A consistent Malmquist productivity index based on nonparametric–parametric approach

Malmquist productivity index is not consistent when refer to difference production technology, the reason of which is technical change, one component of Malmquist index corresponding to shifts at the frontier level, varies with different input–output datum. To overcome this shortcoming in the estimation of Malmquist productivity index, this paper extend production technology to consistent production technology, under which a consistent Malmquist productivity index is presented based on nonparametric–parametric approach. In addition to offering a consistent estimation for Malmquist productivity index, the method presented here can also capture the movement of the production frontier systematically and satisfy circular test-one index test that can't be satisfied by adjacent Malmquist productivity index.