Apart from the well-known weaknesses of the standard Malmquist productivity index related to infeasibility and not accounting for slacks, already addressed in the literature, we identify a new and significant drawback of the Malmquist-Luenberger index decomposition that questions its validity as...

Total factor productivity change, here defined as output quantity change divided by input quantity change, is the combined result of (technical) efficiency change, technological change, a scale effect, and input and output mix effects. Sometimes allocative efficiency change is supposed to also...

Apart from the well-known weaknesses of the standard Malmquist productivity index related to infeasibility and not accounting for slacks, already addressed in the literature, we identify a new and significant drawback of the Malmquist–Luenberger index decomposition that questions its validity...