Integrating Consumer Satisfaction into Productivity Indexes

  • Rolf Färe
  • Shawna Grosskopf
  • Pontus Roos
Part of the Studies in Productivity and Efficiency book series (SIPE, volume 1)


The purpose of this chapter is to generalize the Malmquist index of productivity to reflect information on consumer satisfaction. We accomplish this by adopting the utility indirect input distance function (proposed by Shephard in 1974) as the building block for the productivity index. This distance function seeks to minimize input use subject to both utility and production constraints. Like other Malmquist productivity indexes, this may be decomposed into technical change and efficiency change. The advantages of this preference indirect Malmquist index is that an additional quality change component may be identified, and that demand side influences can be included even without market prices.


Distance Function Data Envelopment Analysis Technical Change Data Envelopment Analysis Model Productivity Index 
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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Rolf Färe
    • 1
  • Shawna Grosskopf
    • 1
  • Pontus Roos
    • 2
  1. 1.Department of EconomicsOregon State UniversityCorvallisUSA
  2. 2.R.R. Institute of Applied EconomicsMalmoSweden

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