Use of Circular Malmquist Index (CMI) and Variable Returns to Scale (VRS-MI) in Productivity Measurement- a Comparative Study
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Date
2014-12
Journal Title
Journal ISSN
Volume Title
Publisher
Centre for Research on Islamic Management and Business
Abstract
This paper aims at comparing results between the circular Malmquist index (CMI)
and the variable returns to scale Malmquist index (VRS-MI) from an even panel
data. Based on the ground theory, the study purposefully uses comparative
discussion on above mentioned methods. The contribution of the paper is on applied
feature of using different methods at the same data set. The results of the study
reveal that efficiency scores of VRS-MI is of higher value than that of CMI except
major unit efficient Decision Making Units (DMUs). In case of some firms, the
deviations are even in extreme points- highest gap is observed by 49.72%. From the
perspective of the application, this paper focuses on deviate scores and therefore
updates the relevant literature. The study covers data from 2009 to 2013 and uses
one output- annual sales and three inputs; namely. (i) fixed asset; (ii) raw material;
and (iii) salary expenses as variables
Description
Keywords
Data Envelopment Analysis, Variable Returns to Scale, Circular Malmquist Index
Citation
Vol. 2, No. 2, December 2014, Page 69-76