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Estimating Griliches' k ‐Shifts
Author(s) -
Fulginiti Lilyan E.
Publication year - 2010
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1093/ajae/aap011
Subject(s) - commodity , economics , productivity , agriculture , production (economics) , marginal product , technological change , growth rate , econometrics , agricultural economics , mathematics , biology , microeconomics , macroeconomics , ecology , geometry , market economy
Griliches' k ‐shift, a crucial parameter in the welfare evaluation of technological change, is shown to be equal to the radial rate of technological change plus a vector of commodity bias parameters obtained from the distance function. The analysis permits decomposition of sectoral productivity growth into productivity growth by commodity. The k ‐shifts estimated for wheat, corn, soybeans, and beef in U.S. agriculture indicate a decrease in the marginal cost of production of corn, soybeans, and wheat during the 1950–1993 years.