PT  - JOURNAL ARTICLE
AU  - Bye, Torstein
AU  - Bruvoll, Annegrete
AU  - Larsson, Jan
TI  - Capacity Utilization in a Generalized Malmquist Index Including Environmental Factors: A Decomposition Analysis
AID  - 10.3368/le.85.3.529
DP  - 2009 Aug 01
TA  - Land Economics
PG  - 529--538
VI  - 85
IP  - 3
4099  - http://le.uwpress.org/content/85/3/529.short
4100  - http://le.uwpress.org/content/85/3/529.full
SO  - Land Econ2009 Aug 01; 85
AB  - Productivity measures ignoring environmental effects may give misleading information on total productivity growth. Further, business cycles in the form of capacity utilization may significantly influence productivity measures. We develop an overall Malmquist productivity index and decompose changing efficiency rates into a contribution from environmental factors, capital, and capacity utilization. Our new combined capacity utilization element contributes to the literature in that it also takes into account the restriction for producing negative externalities. Empirical applications illustrate that the choice of inputs influences the overall productivity measure and its decomposition into efficiency changes and technical changes, and the capacity utilization element. (JEL C14, O12)