Decomposing productivity growth allowing efficiency gains and price-induced technical progress

Alfons Oude Lansink (), E Silva and Spiro Stefanou

European Review of Agricultural Economics, 2000, vol. 27, issue 4, 497-518

Abstract: Time- and firm-specific output technical efficiency measures are generated within a price-induced technological change framework. The firm-specific production frontier incorporates past prices as an argument encouraging innovation and a time trend to account for exogenous technical change. The theoretical model is used to decompose total factor productivity into a scale effect, an efficiency change effect and a technological change effect. Input bias arising from exogenous technical change and price-induced innovation is investigated using a multiple-input measure of biased technical change. The empirical focus is on Dutch pot-plant firms during the period 1979-1995 using the maximum entropy estimation method. Copyright 2000, Oxford University Press.

Date: 2000
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European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo

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