Measuring the Impact of the Rules and Regulations on Productivity Changes in DEA Literature

The Malmquist Index, based on Data Envelopment Analysis (DEA) models, is the prominent index for measuring the relative productivity change of decision-making units (DMUs) in multiple time periods. Using the standard meaning of this index, we can measure and analysis the impact of the efficiency, technology and scale on productivity changes over time. But empirical studies show that there are several rules and regulations which can affect the result of the productivity change. Therefore, this paper presents new insight into the Malmquist index for measuring the impact of the rules and regulations on productivity change and provides a new decomposition of this index.

Keywords:

Data Envelopment Analysis , Malmquist Index , Regular Efficiency Change