Article ID: | iaor2014802 |
Volume: | 41 |
Issue: | 3 |
Start Page Number: | 435 |
End Page Number: | 442 |
Publication Date: | Jun 2014 |
Journal: | Journal of Productivity Analysis |
Authors: | Peyrache Antonio |
Keywords: | management |
A primal index of productivity change is introduced which decomposes exactly into three components: technical change, technical efficiency change and average scale economies (radial scale change). The productivity index is defined using variations of the distance function along pre‐assigned input–output rays and, for this reason, it is deemed a radial productivity index (RPI). It is proven that: