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Parametric Decomposition of Output Growth Using A Stochastic Input Distance Function

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  • Giannis Karagiannis
  • Peter Midmore
  • Vangelis Tzouvelekas

Abstract

This article proposes a tractable approach for analyzing the sources of TFP changes (i.e., technical change, changes in technical and allocative inefficiency, and the scale effect) in a multi-output setting, while retaining the single-equation nature of the econometric procedure used to estimate the parameters of the underlying technology. The proposed approach relies on Bauer's cost function-based decomposition of TFP changes and the duality between input distance and cost functions. The empirical results are based on a sample of 121 UK livestock farms observed over the period 1983–92 and a translog input distance function. Copyright 2004, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.0002-9092.2004.00652.x
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 86 (2004)
Issue (Month): 4 ()
Pages: 1044-1057

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Handle: RePEc:oup:ajagec:v:86:y:2004:i:4:p:1044-1057

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Cited by:
  1. Subal Kumbhakar & Dan Wang, 2007. "Economic reforms, efficiency and productivity in Chinese banking," Journal of Regulatory Economics, Springer, vol. 32(2), pages 105-129, October.
  2. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
  3. Atsbeha, Daniel Muluwork & Kristofersson, Dadi & Rickertsen, Kyrre, 2012. "Animal Breeding and Productivity Growth of Dairy Farms," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126205, International Association of Agricultural Economists.
  4. Zhu, Xueqin & Oude Lansink, Alfons G.J.M., 2009. "Determinants of productivity change of crop and dairy farms in Germany, the Netherlands and Sweden in 1995-2004," 2009 Conference, August 16-22, 2009, Beijing, China 51648, International Association of Agricultural Economists.
  5. Kristin Roll, 2013. "Measuring performance, development and growth when restricting flexibility," Journal of Productivity Analysis, Springer, vol. 39(1), pages 15-25, February.
  6. Subal Kumbhakar & Kai Sun, 2012. "Estimation of TFP growth: a semiparametric smooth coefficient approach," Empirical Economics, Springer, vol. 43(1), pages 1-24, August.
  7. Wing Chow, Clement Kong & Fung, Michael Ka Yiu, 2009. "Efficiencies and scope economies of Chinese airports in moving passengers and cargo," Journal of Air Transport Management, Elsevier, vol. 15(6), pages 324-329.
  8. Marte Bjørnsen & Gudbrand Lien & Timo Sipiläinen, 2011. "The productivity performance of Finnish and Norwegian dairy farms: the effect of joining/not joining the EU," ERSA conference papers ersa11p793, European Regional Science Association.

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