Chen, P.-C.P.-C.ChenYu, M.-M.M.-M.YuChang, C.-C.C.-C.ChangSHIH-HSUN HSU2018-09-102018-09-102007http://www.scopus.com/inward/record.url?eid=2-s2.0-33847079315&partnerID=MN8TOARShttp://scholars.lib.ntu.edu.tw/handle/123456789/332806This article proposes an extended three-stage DEA methodology similar to Fried et al. (2002) to improve the measurement of productivity growth when the assumption of free disposability of undesirable output does not apply. A directional distance function is used to construct adjusted Malmquist-Luenberger productivity indexes which simultaneously account for the impacts of undesirable outputs, environmental variables, and statistical noise. Panel data for 263 farmers' credit unions (FCUs) in Taiwan covering the 1998-2000 periods are employed to illustrate the advantages of this method. On average, the productivity of Taiwan's FCUs is found to have deteriorated over the 1998-2000 period. Although an improvement in efficiency has been observed, the major reason for the deterioration is found to be due to the regression of technology. © 2007 International Association of Agricultural Economists.application/pdf146968 bytesapplication/pdfDirectional distance function; Malmquist-Luenberger productivity index; Three-stage DEA; Undesirable outputs[SDGs]SDG2[SDGs]SDG8agricultural finance; agricultural production; credit provision; environmental factor; index method; input-output analysis; Asia; Eurasia; Far East; Taiwanjournal article10.1111/j.1574-0862.2007.00200.x