Comparison of two alternative store formats using a Malmquist-type index

This paper explores the differences in performance between two groups of retailing stores that operate with different formats. The study described in this paper combines the use of a Malmquist-type index (in a static setting) with statistical tests. This index is decomposed into sub-indexes for comparing the efficiency spread between groups and the productivity differences between the best-practice frontiers of the groups. The hypothesis tests are used to verify if the differences between groups captured by the Malmquist-type index and its components are statistically significant.

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