I have a a dataset of 5 years on firm related variables, for example, labour, capital, and GVA. I am interested to estimate TFPG and further to decompose the TFP change using the Malmquist-DEA approach through the DEAP package. The problem is, the dataset that I have, has a gap of 5 years in between each of the 5 data points. How shall I interpret the TFP change - whether in annual growth rate terms? But I do not have the annual data. The data actually belongs to a period of 20 years, and not 5 continuous years.
Please guide.
Thanks in advance!
You can find your answer in conclusion of following article:
Malmquist Productivity Index Using Two-Stage DEA Model in Heart Hospitals
Hello Mirpouya Mirmozaffari !
Thanks for extending help. But my question was little different. Since Malmquist Productivity Index gives you a geometric mean of the TFPG and its components, it is very simple to calculate annual rate of change by simply subtracting the men value from 1... Mind it, it will give you the 'annual' rate of growth which is only meaningful when you have annual data with no gaps. In my case, I have a dataset of 5 years with a gap of, say 2 years in between each data point. Therefore, I am willing to find out CAGR of the TFP change and its components. Is there any way I can find it? Or is there any alternate way of interpreting the Malmquist Productivity Index in such a case.
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