EconPapers    
Economics at your fingertips  
 

Measuring Total Factor Productivity and Variable Factor Utilization

Ludmila Fadejeva and Aleksejs Meļihovs

Eastern European Economics, 2010, vol. 48, issue 5, 63-101

Abstract: This research constructs estimates of total factor productivity (TFP) growth for six sectors of the Latvian economy for the period 2000-2008, using a sectoral quarterly data set. Estimates are obtained by controlling for qualitative changes in production factors and assuming a mechanism for capturing changes in the utilization of labor and capital. The study provides two main results. First, the use of indicators for labor and capital utilization intensity allows for minimization of fluctuations in the TFP measure and makes it less dependent on output growth compared with the Solow residual approach. Second, the comparison of both methods shows that the estimate of TFP growth obtained by the Solow residual approach might be undervalued for manufacturing, electricity, gas and water supply, wholesale and retail trade, as well as hotels and restaurants, while overvalued for growth in the transport, storage, and communication sector of the Latvian economy.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=T23254Q842645569 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Measuring Total Factor Productivity and Variable Factor Utilisation: Sector Approach, The Case of Latvia (2009) 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: https://EconPapers.repec.org/RePEc:mes:eaeuec:v:48:y:2010:i:5:p:63-101

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MEEE20

Access Statistics for this article

More articles in Eastern European Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2020-07-24
Handle: RePEc:mes:eaeuec:v:48:y:2010:i:5:p:63-101