An Economic Approach to Identifying the Drivers of Productivity Change in the Market Sectors of the Australian Economy

Christopher O`Donnell
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Christopher O`Donnell: School of Economics, The University of Queensland, https://economics.uq.edu.au/cepa
Authors registered in the RePEc Author Service: Christopher John O'Donnell

No WP022014, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: This paper uses a relatively new total factor productivity (TFP) index to measure productivity change in the Australian economy. Unlike the TFP indexes used by most statistical agencies, the index used in this paper satisfies a suite of common sense axioms from index number theory. It can also be exhaustively decomposed into measures of technical change, environmental change, and various types of efficiency change. This paper uses least squares methods to estimate these components. The main driver of productivity change in the Australian economy is found to have been scale-mix efficiency change. Scale-mix efficiency is a measure of how well a firm is capturing economies of scale and scope.

Date: 2014-02
New Economics Papers: this item is included in nep-eff
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:qld:uqcepa:93

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