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Measuring productivity change using alternative input–output concepts: A farm level application using FADN data

Yann de Mey (), Vancauteren Mark, van Winsen Frankwin, Wauters Erwin, Lauwers Ludwig and Van Passel Steven

No 152364, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain from International Agricultural Trade Research Consortium

Abstract: Multifactor productivity growth measures can be constructed using different input–output concepts. We estimate three distinct productivity growth measures respectively based on gross output, value added, and cash flow and discuss their economic interpretation. By making use of an index theory based decomposition model, we deviate from making neo-classical assumptions and acknowledge the role of profits. Applying the productivity growth index framework to farm level Flemish FADN data (1990–2003), we show that the estimated percentage growth of productivity is sensitive to the input–output concept under consideration. The empirical practicability of these complementary productivity growth measures depends on the purpose of measurement.

Keywords: Production Economics; Productivity Analysis; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 30
Date: 2013-06
New Economics Papers: this item is included in nep-agr, nep-eff and nep-spo
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iatr13:152364

DOI: 10.22004/ag.econ.152364

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