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Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models

Subal Kumbhakar (), Almas Heshmati () and Lennart Hjalmarsson

Scandinavian Journal of Economics, 1999, vol. 101, issue 3, 405-424

Abstract: This paper deals with modeling total factor productivity (TFP) growth in a flexible manner using panel data. Several competing parametric models are used to explore whether there are any similarities in the estimates of TFP growth and technical change among these models. Using a primal approach, we decompose TFP growth into different components. The models are then used to measure productivity and technical change in the Swedish cement industry. In general, the results are found to be model dependent and often conflicting, although much less so for returns to scale and overall productivity growth. JEL classification: O30; C33

Date: 1999
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