Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 23 February 2019

Abstract and Keywords

The focus of this chapter is to move the measurement of efficiency and productivity from a static to a dynamic approach using distance functions. Since distance functions represent technology, the authors first specify that technology in a dynamic framework is amenable to data envelopment analysis (DEA)–type estimation, explicitly allowing current (or past) decisions to affect future production possibilities. This includes notions of intermediate products, investment, time substitution, supply chain, networks and possible reallocations across time. The chapter shows how to estimate dynamic distance functions and specify a multi-period dynamic model in the spirit of Ramsey (1928), as well as an adjacent-period model familiar from the Malmquist productivity literature, providing an empirical illustration of the former. Extensions of these dynamic models is relatively straightforward for other distance function–based productivity indices, both parametric and nonparametric, as well as for production in the presence of good and bad outputs.

Keywords: data envelopment analysis, distance function, Malmquist productivity, dynamic model, productivity, time substitution

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.