Productivity changes of units: A directional measure of cost Malmquist index

Abstract

This study examines the productivity changes of decision making units in situation where<br />input price vectors are varying between them and inputs are heterogeneous; that is a noncompetitive<br />market. We present a directional measure of cost Malmquist productivity index<br />where incorporates the decision maker's preference over productivity change over time. A<br />simple numerical example is designed to illustrate the new measure of the cost Malmquist<br />index.