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Latin America: Incorporating environmental factors into the measurement of production efficiency and technical change
Author(s) -
Daniel Sotelsek Salem,
Leopoldo Laborda
Publication year - 2010
Publication title -
cepal review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.117
H-Index - 13
eISSN - 1684-0348
pISSN - 0251-2920
DOI - 10.18356/c3a5e770-en
Subject(s) - total factor productivity , latin americans , convergence (economics) , economics , productivity , econometrics , production (economics) , divergence (linguistics) , maximization , technical change , kernel density estimation , welfare economics , economic geography , mathematics , environmental science , statistics , macroeconomics , political science , microeconomics , linguistics , philosophy , estimator , law
This paper examines growth in a set of Latin American countries from 1980 to 2004 by analysing total factor productivity (tfp) from a twofold perspective: maximization of output (gdp) and minimization of the co2 emissions generated in the production process. Malmquist productivity indices are constructed for this purpose. In addition, kernel density functions are employed to analyse convergence (or divergence) in the efficiency estimated. The results obtained indicate that incorporating environmental factors into the measurement of efficiency and productive change significantly improves the estimates for certain countries in the region by comparison with those obtained by more traditional methods.

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