Multilateral productivity comparisons and homotheticity

Multilateral productivity comparisons and homotheticity

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Article ID: iaor20134234
Volume: 40
Issue: 1
Start Page Number: 57
End Page Number: 65
Publication Date: Aug 2013
Journal: Journal of Productivity Analysis
Authors:
Keywords: statistics: general
Abstract:

In this paper it is shown that a well known procedure (GEKS) of transitivizing a bilateral system of productivity comparisons is implicitly a way of imposing a homothetic structure onto the data. The main implication of this result is that deviations between the bilateral and the multilateral (GEKS) indexes can be interpreted as a measure of local deviation from the homothetic assumption. This establishes an additional link between homotheticity and transitivity.

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