Neoclassical Growth Accounting and Frontier Analysis: A Synthesis
AbstractThe standard measure of productivity growth is the Solow residual. Its evaluation requires data on factor input shares or prices. Since these prices are presumed to match factor productivities, the standard procedure amounts to accepting at face value what is supposed to be measured. In this paper we estimate total factor productivity growth without recourse to data on factor input prices. Factor productivities are defined as Lagrange multipliers to the program that maximizes the level of domestic final demand. The consequent measure of total factor productivity is shown to encompass not only the Solow residual, but also the efficiency change of frontier analysis and the hitherto slippery terms-of-trade effect. Using input-output tables from 1962 to 1991 we show that the source of Canadian productivity growth has shifted from technical change to terms-of-trade effects. Copyright Kluwer Academic Publishers 2002
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 18 (2002)
Issue (Month): 2 (September)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100296
total factor productivity growth; efficiency change; terms-of trade effect; growth accounting; data envelopment analysis;
Other versions of this item:
- Raa, T. ten & Mohnen, P., 2002. "Neoclassical growth accounting and frontier analysis: A synthesis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-90106, Tilburg University.
- Raa, T. ten & Mohnen, P., 2000. "Neoclassical Growth Accounting and Frontier Analysis: A Synthesis," Discussion Paper 2000-67, Tilburg University, Center for Economic Research.
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- W.E. Diewert & Catherine J. Morrison, 1985.
"Adjusting Output and Productivity Indexes for Changes in the Terms of Trade,"
NBER Working Papers
1564, National Bureau of Economic Research, Inc.
- Diewart, W Erwin & Morrison, Catherine J, 1986. "Adjusting Output and Productivity Indexes for Changes in the Terms of Trade," Economic Journal, Royal Economic Society, vol. 96(383), pages 659-79, September.
- Fare, Rolf & Grosskopf, Shawna, 1996. "Productivity and intermediate products: A frontier approach," Economics Letters, Elsevier, vol. 50(1), pages 65-70, January.
- de Jong, G., 1996. "Canada's Post-War Manufacturing Performance: A Comparison with the United States," Papers 32, Groningen State, Institute of Economic Research-.
- Hulten, Charles R, 1979. "On the "Importance" of Productivity Change," American Economic Review, American Economic Association, vol. 69(1), pages 126-36, March.
- Morrison, Catherine J, 1988. "Quasi-Fixed Inputs in U.S. and Japanese Manufacturing: A Generalized Leontief Restricted Cost Function Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 275-87, May.
- Perelman, Sergio, 1995. "R&D, Technological Progress and Efficiency Change in Industrial Activities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(3), pages 349-66, September.
- Guido Cella & Giovanni Pica, 2001. "Inefficiency Spillovers in Five OECD Countries: An Interindustry Analysis," Economic Systems Research, Taylor and Francis Journals, vol. 13(4), pages 405-416.
- Sofiane Ghali & Pierre Mohnen, 2010.
"Economic Restructuring and Total Factor Productivity Growth: Tunisia Over the Period 1983-2001,"
CIRANO Working Papers
- Ghali, Sofiane & Mohnen, Pierre, 2010. "Economic restructuring and total factor productivity growth: Tunisia over the period 1983-2001," UNU-MERIT Working Paper Series 033, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Ghali,Sofiane & Mohnen,Pierre, 2002.
"Restructuring and economic performance: the experience of the Tunisian economy,"
011, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Sofiane Ghali & Pierre Mohnen, 2002. "Restructuring And Economic Performance: The Experience Of The Tunisian Economy," CIRANO Working Papers 2002s-26, CIRANO.
- Pierre Mohnen & Thijs Ten Raa, 2003.
"Competition and Performance: The Different Roles of Capital and Labor,"
CIRANO Working Papers
- ten Raa, Thijs & Mohnen, Pierre, 2008. "Competition and performance: The different roles of capital and labor," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 573-584, March.
- Thijs ten Raa & Pierre Mohnen, 2003. "Competition and Performance: The Different Roles of Capital and Labor," ERSA conference papers ersa03p10, European Regional Science Association.
- Mohnen,Pierre & Raa,Thijs,ten, 2003. "Competition and Performance: The Different Roles of Capital and Labor," Research Memoranda 034, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Mohnen, P. & Raa, T. ten, 2003. "Competition and Performance: The Different Roles of Capital and Labor," Discussion Paper 2003-112, Tilburg University, Center for Economic Research.
- Michael C. Burda & Battista Severgnini, 2008.
"Solow Residuals without Capital Stocks,"
SFB 649 Discussion Papers
SFB649DP2008-040, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Rodriguez, Xose Anton & Arias, Carlos, 2008. "The effects of resource depletion on coal mining productivity," Energy Economics, Elsevier, vol. 30(2), pages 397-408, March.
- Mohnen, P. & Raa, T. ten, 2000.
"A general equilibrium analysis of the evolution of Canadian service productivity,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-86157, Tilburg University.
- Mohnen, Pierre & ten Raa, Thijs, 2000. "A general equilibrium analysis of the evolution of Canadian service productivity," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 491-506, December.
- Sahoo, Amarendra & ten Raa, Thijs, 2012. "Wage–productivity differentials and Indian economic efficiency," Economic Modelling, Elsevier, vol. 29(2), pages 341-348.
- Salinas-Jimenez, M Mar & Alvarez-Ayuso, Inmaculada & Delgado-Rodriguez, M Jesus, 2006. "Capital accumulation and TFP growth in the EU: A production frontier approach," Journal of Policy Modeling, Elsevier, vol. 28(2), pages 195-205, February.
- Prieto, Angel M. & Zofio, Jose L., 2007. "Network DEA efficiency in input-output models: With an application to OECD countries," European Journal of Operational Research, Elsevier, vol. 178(1), pages 292-304, April.
- Kagawa, Shigemi, 2008. "How does Japanese compliance with the Kyoto Protocol affect environmental productivity in China and Japan?," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 173-188, June.
- ten Raa, Thijs & Pan, Haoran, 2005. "Competitive pressures on China: Income inequality and migration," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 671-699, November.
- Sahoo, A., 2008. "Essays on the Indian Economy: Competitive Pressure, Productivity and Performance," Open Access publications from Tilburg University urn:nbn:nl:ui:12-373280, Tilburg University.
- Michael C. Burda & Battista Severgnini, 2009.
"TFP Growth in Old and New Europe,"
SFB 649 Discussion Papers
SFB649DP2009-033, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Thijs Raa & Victoria Shestalova, 2011. "The Solow residual, Domar aggregation, and inefficiency: a synthesis of TFP measures," Journal of Productivity Analysis, Springer, vol. 36(1), pages 71-77, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.