Search for: All records

The Malmquist index gives a measure of productivity in dynamic settings and has been widely applied in empirical work. The index is typically estimated using envelopment estimators, particularly data envelopment analysis (DEA) estimators. Until now, inference about productivity change measured by Malmquist indices has been problematic, including both inference regarding productivity change experienced by particular firms as well as mean productivity change. This paper establishes properties of a DEA-type estimator of distance to the conical hull of a variable returns to scale production frontier. In addition, properties of DEA estimators of Malmquist indices for individual producers are derived as well as properties of geometric means of these estimators. The latter requires new central limit theorem results, extending the work of Kneip, Simar, and Wilson (2015, Econometric Theory 31, 394–422). Simulation results are provided to give applied researchers an idea of how well inference may work in practice in finite samples. Our results extend easily to other productivity indices, including the Luenberger and Hicks–Moorsteen indices. 

Multivariate functional data are becoming ubiquitous with advances in modern technology and are substantially more complex than univariate functional data. We propose and study a novel model for multivariate functional data where the component processes are subject to mutual time warping. That is, the component processes exhibit a similar shape but are subject to systematic phase variation across their time domains. To address this previously unconsidered mode of warping, we propose new registration methodology that is based on a shift‐warping model. Our method differs from all existing registration methods for functional data in a fundamental way. Namely, instead of focusing on the traditional approach to warping, where one aims to recover individual‐specific registration, we focus on shift registration across the components of a multivariate functional data vector on a population‐wide level. Our proposed estimates for these shifts are identifiable, enjoy parametric rates of convergence, and often have intuitive physical interpretations, all in contrast to traditional curve‐specific registration approaches. We demonstrate the implementation and interpretation of the proposed method by applying our methodology to the Zürich Longitudinal Growth data and study its finite sample properties in simulations.