The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms

Balcombe, Kelvin and Davidova, Sophia M. and Latruffe, Laure (2008) The use of bootstrapped Malmquist indices to reassess productivity change findings: an application to a sample of Polish farms. Applied Economics, 40 (16). pp. 2055-2061. ISSN 0003-6846. (Full text available)

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http://dx.doi.org/10.1080/00036840600949264

Abstract

This article assesses the extent to which sampling variation affects findings about Malmquist productivity change derived using data envelopment analysis (DEA), in the first stage by calculating productivity indices and in the second stage by investigating the farm-specific change in productivity. Confidence intervals for Malmquist indices are constructed using Simar and Wilson's (1999) bootstrapping procedure. The main contribution of this article is to account in the second stage for the information in the second stage provided by the first-stage bootstrap. The DEA SEs of the Malmquist indices given by bootstrapping are employed in an innovative heteroscedastic panel regression, using a maximum likelihood procedure. The application is to a sample of 250 Polish farms over the period 1996 to 2000. The confidence intervals’ results suggest that the second half of 1990s for Polish farms was characterized not so much by productivity regress but rather by stagnation. As for the determinants of farm productivity change, we find that the integration of the DEA SEs in the second-stage regression is significant in explaining a proportion of the variance in the error term. Although our heteroscedastic regression results differ with those from the standard OLS, in terms of significance and sign, they are consistent with theory and previous research.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > Kent Business School > Agri-Environment Economics
Depositing User: Sophia Davidova
Date Deposited: 06 Aug 2008 10:23
Last Modified: 17 Apr 2014 11:01
Resource URI: http://kar.kent.ac.uk/id/eprint/8734 (The current URI for this page, for reference purposes)
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