Projection pursuit regression and disaggregate productivity effects: the case of the Indian blast furnaces

Sanghamitra Das and Ramprasad Sengupta
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Ramprasad Sengupta: Centre of Economic Studies and Planning, Jawaharlal Nehru University, India, Postal: Centre of Economic Studies and Planning, Jawaharlal Nehru University, India

Journal of Applied Econometrics, 2004, vol. 19, issue 3, 397-418

Abstract: Productivity of blast furnaces in India is studied by disaggregating the production process and the utilization process. A dimension-reducing nonparametric approach-projection pursuit regression-is used. We find that productivity can be increased significantly by improving the quality of coal. There is no evidence that executives have a positive marginal product. The production workers have a negative marginal product for the production process and a positive one for the utilization process. But the training of executives has a positive effect whereas that of the production workers has a negative effect on productivity. Copyright © 2004 John Wiley & Sons, Ltd.

Date: 2004
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DOI: 10.1002/jae.756

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