A NEW, TRANSITIVE PRODUCTIVITY INDEX

The Malmquist productivity index is not transitive. This paper argues that, instead of trying to accommodate this two-period concept to a mu lti-period setting, it is preferable to look at the measurement of pro ductivity, efficiency, and technical change in a multi-period setting from the outset. A new, transitive productivity index is developed wit h as by-product a measure of the non-neutrality of technical change. T he various indices are illustrated on panel data of Swedish pharmacies .