Summary.
Introducing a new difference-based Luenberger-Hicks-Moorsteen productivity indicator, this contribution establishes theoretically its relations with some existing ratio- and difference-based productivity indexes and indicators. The first main result is an approximation proposition stating that the logarithm of the Hicks-Moorsteen productivity index is about equal to the Luenberger-Hicks-Moorsteen productivity indicator. Secondly, we also establish the specific conditions under which the Luenberger-Hicks-Moorsteen indicator equals the recently introduced Luenberger indicator and compare these to the conditions governing the relations between ratio-based Hicks-Moorsteen and Malmquist indices.
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Received: 2 May 2002, Revised: 19 May 2003,
JEL Classification Numbers:
C43, D21, D24.
We are grateful for the most constructive remarks of a referee. Obviously, the authors remain solely responsible for any residual shortcomings.
Correspondence to: W. Briec
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Briec, W., Kerstens, K. A Luenberger-Hicks-Moorsteen productivity indicator: its relation to the Hicks-Moorsteen productivity index and the Luenberger productivity indicator. Economic Theory 23, 925–939 (2004). https://doi.org/10.1007/s00199-003-0403-2
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DOI: https://doi.org/10.1007/s00199-003-0403-2