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Measuring productivity change using alternative input–output concepts: A farm level application using FADN data

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  • Yann, de Mey
  • Mark, Vancauteren
  • Frankwin, van Winsen
  • Erwin, Wauters
  • Ludwig, Lauwers
  • Steven, Van Passel

Abstract

Multifactor productivity growth measures can be constructed using different input–output concepts. We estimate three distinct productivity growth measures respectively based on gross output, value added, and cash flow and discuss their economic interpretation. By making use of an index theory based decomposition model, we deviate from making neo-classical assumptions and acknowledge the role of profits. Applying the productivity growth index framework to farm level Flemish FADN data (1990–2003), we show that the estimated percentage growth of productivity is sensitive to the input–output concept under consideration. The empirical practicability of these complementary productivity growth measures depends on the purpose of measurement.

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Bibliographic Info

Paper provided by International Agricultural Trade Research Consortium in its series Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain with number 152364.

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Date of creation: Jun 2013
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Handle: RePEc:ags:iatr13:152364

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Keywords: Index; input–output; MFP; productivity analysis; profits; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; C43; D24; Q12;

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