Malmquist index and state productivity in México
Abstract
The scarcity of resources makes efficiency in production necessary. This is a comparative measure and is not absolute; with this in mind, this study is about the productive efficiency of federal entities in México. The approach used is data envelopment analysis with the Malmquist Index. This index evaluates each unit that refers to the group in two points in time, generating a measure of efficiency of the unit under analysis. With data from the Gross Domestic Product per state, labor and capital inventory from 2005 to 2010, it was found that national productivity is on the efficient limit. With regards to the federal entities, it was found that 18 are above the efficient limit, 12 exceed it, and only two appear below it.
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