Dynamic Efficiency Analysis Using Malmquist Index and DEA Models

Traditional Data Envelopment Analysis (DEA) models, such as the CCR (constant returns to scale) and BCC (variable returns to scale) models, provide a static efficiency assessment. To address the limitation of static analysis and capture the dynamic changes in firm efficiency, the Malmquist index method is employed. This index facilitates the exploration of relative efficiency changes and dynamic shifts in the same decision-making unit across different time periods. The calculation of the Malmquist index is based on the following formula: (Insert Formula Here).