An expanded decomposition of the Luenberger productivity indicator with an application to the Chinese healthcare sector

•A novel decomposition of the aggregate Luenberger productivity indicator is proposed.•The proposed decomposition captures the productivity effects of reallocations of inputs and outputs across productive units.•The efficiency change element can be decomposed to technical, mix and scale effects.•The model is applied to a provincial and regional data in China's healthcare sector.•China's healthcare productivity growth was driven by technological progress over 2009–2014.