Debreu’s coefficient of resource utilization, the Solow residual, and TFP: the connection by Leontief preferences
AbstractDebreu?s coefficient of resource allocation is freed from individual data requirements. The procedure is shown to be equivalent to the imposition of Leontief preferences. The rate of growth of the modified Debreu coefficient and the Solow residual are shown to add up to TFP growth. This decomposition is the neoclassical counterpart to the frontier analytic decomposition of productivity growth into technical change and efficiency change. The terms can now be broken down by sector as well as by factor input.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 30 (2008)
Issue (Month): 3 (December)
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Web page: http://www.springerlink.com/link.asp?id=100296
Efficiency; Productivity; Debreu’s coefficient; Solow residual; D24; O47;
Other versions of this item:
- Thijs ten Raa, 2003. "Debreu?s Coefficient of Resource Utilization, the Solow Residual, and TFP: The Connection by Leontief Preferences," ERSA conference papers ersa03p9, European Regional Science Association.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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