Productivity growth in OECD countries: a comparison with Malmquist indices

We utilize two alternative indices to measure productivity growth for all but two OECD countries. First, we employ a Malmquist productivity index without considering the existence of hazardous by-products of production processes. To address the shortfalls of this index, we construct an alternative Malmquist-Luenberger productivity index and find that the Malmquist index underestimates the productivity growth. Finally, we investigate the effects of an international protocol on reducing global emissions and country-specific effects on Malmquist-Luenberger productivity measures. © 2005 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.