Estimation and decomposition of productivity change when production is not efficient: a paneldata approach

Subal Kumbhakar, Michael Denny and M. Fuss

Econometric Reviews, 2000, vol. 19, issue 4, 312-320

Abstract: This paper addresses estimation and decomposition of productivity change, which is mostly identified as technical change under constant (unitary) returns to scale (CRS). If the CRS assumption is not made, productivity change is decomposed into technical change and scale effects.Furthermore, if inefficiency exists, it also contributes to productivity change. Here we decompose productivity change into efficiency change, technical change, and scale effects. Three alternative approaches using parametric production, cost, and profit functions, which differ in terms of behavioral assumptions on the producers and data requirements, are considered.

Keywords: total factor productivity; technical change; returns to scale; scale effects; technical inefficiency; allocative inefficiency; production function; cost function; profit function (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (73)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/07474930008800481 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:emetrv:v:19:y:2000:i:4:p:312-320

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/LECR20

DOI: 10.1080/07474930008800481

Access Statistics for this article

Econometric Reviews is currently edited by Dr. Essie Maasoumi

More articles in Econometric Reviews from Taylor & Francis Journals
Bibliographic data for series maintained by ().