A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator: Theory and application

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A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator : Theory and application. / Ang, Frederic; Kerstens, Pieter Jan.

In: European Journal of Operational Research, Vol. 285, No. 3, 2020, p. 1161-1173.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Ang, F & Kerstens, PJ 2020, 'A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator: Theory and application', European Journal of Operational Research, vol. 285, no. 3, pp. 1161-1173. https://doi.org/10.1016/j.ejor.2020.02.030

APA

Ang, F., & Kerstens, P. J. (2020). A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator: Theory and application. European Journal of Operational Research, 285(3), 1161-1173. https://doi.org/10.1016/j.ejor.2020.02.030

Vancouver

Ang F, Kerstens PJ. A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator: Theory and application. European Journal of Operational Research. 2020;285(3):1161-1173. https://doi.org/10.1016/j.ejor.2020.02.030

Author

Ang, Frederic ; Kerstens, Pieter Jan. / A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator : Theory and application. In: European Journal of Operational Research. 2020 ; Vol. 285, No. 3. pp. 1161-1173.

Bibtex

@article{f51afddcf69e4e4898b08b5f3299adc7,
title = "A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator: Theory and application",
abstract = "Consisting of the difference between an output indicator and an input indicator, the Luenberger-Hicks-Moorsteen (LHM) productivity indicator allows straightforward interpretation. However, its computation requires estimating distance functions that are inherently unknown. This paper shows that a computationally simple Bennet indicator is a superlative indicator for the LHM indicator when one can assume profit-maximizing behavior and the input and output directional distance functions can be represented up to the second order by a quadratic functional form. We also show that the Luenberger- and LHM-approximating Bennet indicators coincide for an appropriate choice of directional vectors. Focusing on a large sample of Italian food and beverages companies for the years 1995-2007, we empirically investigate the extent to which this theoretical equivalence translates into similar estimates. We find that the Bennet indicator is a close empirical alternative to the LHM indicator for the sample.",
author = "Frederic Ang and Kerstens, {Pieter Jan}",
year = "2020",
doi = "10.1016/j.ejor.2020.02.030",
language = "English",
volume = "285",
pages = "1161--1173",
journal = "European Journal of Operational Research",
issn = "0377-2217",
publisher = "Elsevier",
number = "3",

}

RIS

TY - JOUR

T1 - A superlative indicator for the Luenberger-Hicks-Moorsteen productivity indicator

T2 - Theory and application

AU - Ang, Frederic

AU - Kerstens, Pieter Jan

PY - 2020

Y1 - 2020

N2 - Consisting of the difference between an output indicator and an input indicator, the Luenberger-Hicks-Moorsteen (LHM) productivity indicator allows straightforward interpretation. However, its computation requires estimating distance functions that are inherently unknown. This paper shows that a computationally simple Bennet indicator is a superlative indicator for the LHM indicator when one can assume profit-maximizing behavior and the input and output directional distance functions can be represented up to the second order by a quadratic functional form. We also show that the Luenberger- and LHM-approximating Bennet indicators coincide for an appropriate choice of directional vectors. Focusing on a large sample of Italian food and beverages companies for the years 1995-2007, we empirically investigate the extent to which this theoretical equivalence translates into similar estimates. We find that the Bennet indicator is a close empirical alternative to the LHM indicator for the sample.

AB - Consisting of the difference between an output indicator and an input indicator, the Luenberger-Hicks-Moorsteen (LHM) productivity indicator allows straightforward interpretation. However, its computation requires estimating distance functions that are inherently unknown. This paper shows that a computationally simple Bennet indicator is a superlative indicator for the LHM indicator when one can assume profit-maximizing behavior and the input and output directional distance functions can be represented up to the second order by a quadratic functional form. We also show that the Luenberger- and LHM-approximating Bennet indicators coincide for an appropriate choice of directional vectors. Focusing on a large sample of Italian food and beverages companies for the years 1995-2007, we empirically investigate the extent to which this theoretical equivalence translates into similar estimates. We find that the Bennet indicator is a close empirical alternative to the LHM indicator for the sample.

U2 - 10.1016/j.ejor.2020.02.030

DO - 10.1016/j.ejor.2020.02.030

M3 - Journal article

VL - 285

SP - 1161

EP - 1173

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

IS - 3

ER -

ID: 237042504