Measuring the Effect of the Rules and Regulations on Global Malmquist Index

The circle-type or global Malmquist index, which is based on Data Envelopment Analysis (DEA) models, is an important index that is widely used for measuring the relative productivity change of decisionmaking units (DMUs) in multiple time periods. This index, similar to the standard approach of measuring the productivity change using the standard Malmquist index, breaks down into various components, which can then be used to measure the impact of the efficiency, technology, and scale on productivity changes over time. However, empirical studies show that there are some rules and regulations that can affect the result of the productivity changes. Therefore, this paper presents new insight into the global Malmquist index for measuring the effect of the rules and regulations on productivity changes that come from imposing some trade-offs to the production possibility set of the problem, and provides a new decomposition of this index.