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2013 Modified Malmquist Productivity Index Based on Present Time Value of Money
Farhad Hosseinzadeh Lotfi, Golamreza Jahanshahloo, Mohsen Vaez-Ghasemi, Zohreh Moghaddas
J. Appl. Math. 2013(SI24): 1-8 (2013). DOI: 10.1155/2013/607190

Abstract

Data envelopment analysis (DEA) models can calculate the Malmquist Productivity Index (MPI). Classic Malmquist Productivity Index shows regress and progress of a DMU in different periods with efficiency and technology variations without considering the present value of money. This issue is of major importance since while a currency of in previous year is not equal to that of now this would yield bias results which can affect the correct interpretation. The index developed here is defined in terms of Modified Malmquist Productivity Index model, which can calculate progress and regress by using the factor of present time value of money. The incorporation of present time value of money is also calculated within the framework of data envelopment analysis. This factor is fundamental and should be considered in DEA Malmquist Productivity Index. Moreover, here, differences between presented models are compared to those of previous ones indeed, biased results will be shown in the case study in banks, and problem and solution have been investigated in the literature.

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Farhad Hosseinzadeh Lotfi. Golamreza Jahanshahloo. Mohsen Vaez-Ghasemi. Zohreh Moghaddas. "Modified Malmquist Productivity Index Based on Present Time Value of Money." J. Appl. Math. 2013 (SI24) 1 - 8, 2013. https://doi.org/10.1155/2013/607190

Information

Published: 2013
First available in Project Euclid: 14 March 2014

zbMATH: 1266.91061
Digital Object Identifier: 10.1155/2013/607190

Rights: Copyright © 2013 Hindawi

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Vol.2013 • No. SI24 • 2013
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