Abstract

In this paper, we extend the work of Camanho and Dyson (2006, 26:35-49) into a group of Malmquist productivity index for two time periods of measurement, based on the Malmquist index to enable the decision making units’ internal efficiencies from those associated with their group characteristics. We construct an index reflecting the relative performance groups in two time periods, which can be decomposed into two indices, first for the comparison of efficiency changing and another index for comparison of technological change. We provide a computational method for extension of the Malmquist index group A in relation to group B of time t to time t+1. The utilization of the proposed approach is demonstrated with an illustrative example.

Key words: Data envelopment analysis (DEA), Malmquist productivity index, group efficiency.