Economics at your fingertips  

A decomposition of US business sector TFP growth into technical progress and cost efficiency components

Walter Diewert () and Kevin Fox ()

Journal of Productivity Analysis, 2018, vol. 50, issue 1, 71-84

Abstract: Abstract A problem with index number methods for computing TFP growth is that during recessions these methods show declines in TFP. This is rather implausible since it implies technological regress. We develop a new method to decompose TFP growth into technical progress and inefficiency arising from the short run fixity of capital and labour, and apply this to new data on the US corporate nonfinancial sector and the noncorporate nonfinancial sector. The analysis sheds light on sources of the productivity growth slowdowns over the period 1960–2014.

Keywords: Technical and allocative inefficiency; Nonparametric production theory (search for similar items in EconPapers)
JEL-codes: C43 C61 C67 C82 D24 E22 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A Decomposition of U.S. Business Sector TFP Growth into Technical Progress and Cost Efficiency Components (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-06
Handle: RePEc:kap:jproda:v:50:y:2018:i:1:d:10.1007_s11123-018-0535-9