Malmquist Productivity Analysis using DEA frontier in Stata

In this presentation, the author presents a procedure and an illustrative application of a user-written Malmquist Productivity Analysis(MPA) using Data Envelopment Analysis (DEA) frontier in Stata. MPA measures the productivity changes for units between time periods. MPA has been used widely for assessing the productivity changes of public and private sectors, such as banks, airlines, hospitals, universities, defense firms, and manufacturers when the panel data are available. The MPA using DEA frontier in Stata will allow Stata users to conduct not only the stochastic approach for productivity analysis using SFA frontier but also non-stochastic approach using DEA frontier also suggested by the author. The user-written MPA approach in Stata will provide some possible future extensions of Stata programming in the productivity analysis.