Nonparametric Estimates of the Components of Productivity and Profitability Change in U.S. Agriculture
AbstractRecent theoretical advances in total factor productivity (TFP) measurement mean that TFP indexes can now be exhaustively decomposed into unambiguous measures of technical change and efficiency change. To date, all applications of this new methodology have involved decomposing indexes that have poor theoretical properties. This article shows how the methodology can be used to decompose a new TFP index that satisfies all economically-relevant axioms from index theory. The application is to state-level data from 1960 to 2004. In most states, the main drivers of agricultural TFP change are found to have been technical change and scale and mix efficiency change. Copyright 2012, Oxford University Press.
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Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.
Volume (Year): 94 (2012)
Issue (Month): 4 ()
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Other versions of this item:
- C.J. O'Donnell, 2010. "Nonparametric Estimates Of The Components Of Productivity And Profitability Change In U.S. Agriculture," CEPA Working Papers Series WP022010, School of Economics, University of Queensland, Australia.
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.:
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- C.J. O'Donnell, 2011. "The Sources of Productivity Change in the Manufacturing Sectors of the U.S. Economy," CEPA Working Papers Series WP072011, School of Economics, University of Queensland, Australia.
- C.J. O’Donnell, 2011. "Econometric Estimation of Distance Functions and Associated Measures of Productivity and Efficiency Change," CEPA Working Papers Series WP012011, School of Economics, University of Queensland, Australia.
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- Arjomandi, Amir & Valadkhani, Abbas, 2010. "Banks’ Efficiency and Productivity Analysis Using the Hicks-Moorsteen Approach: A Case Study of Iran," Economics Working Papers wp10-11, School of Economics, University of Wollongong, NSW, Australia.
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