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Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models
Author(s) -
Kumbhakar Subal C.,
Heshmati Almas,
Hjalmarsson Lennart
Publication year - 1999
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/1467-9442.00163
Subject(s) - total factor productivity , econometrics , economics , productivity , parametric statistics , productivity model , technical change , panel data , partial productivity , scale effects , parametric model , measure (data warehouse) , scale (ratio) , macroeconomics , mathematics , statistics , computer science , physics , quantum mechanics , database
This paper deals with modeling total factor productivity (TFP) growth in a flexible manner using panel data. Several competing parametric models are used to explore whether there are any similarities in the estimates of TFP growth and technical change among these models. Using a primal approach, we decompose TFP growth into different components. The models are then used to measure productivity and technical change in the Swedish cement industry. In general, the results are found to be model dependent and often conflicting, although much less so for returns to scale and overall productivity growth. JEL classification:O 30; C 33