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Separating Technical Change From Time-Varying Technical Inefficiency In The Absence Of Distributional Assumptions

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Author Info
Karagiannis, G.
Midmore, P.
Tzouvelekas, V.

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Abstract

This paper proposes an alternative approach for separating technical change from time-varying technical inefficiency. The approach uses the general index, developed by Baltagi and Griffin (1988), to model technical change along the production function, and a quadratic function of time trend, as in Cornwell, Schmidt and Sickles (1990), to capture the temporal pattern of technical inefficiency. In such a setting, all parameters associated with the rate of technical change and the temporal pattern of technical inefficiency are identified separately. Moreover, the proposed approach is independent of any distributional assumption concerning the one-sided error term associated with technical inefficiency, and can easily be estimated using FGLS. Comparative empirical results based on a translog production frontier function, and estimates of technical inefficiency and technical change are presented for the UK dairy sector over the period 1982-1992.

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Paper provided by Agecon Search in its series Miscellaneous Papers with number 11842.

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Date of creation: 1999
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Handle: RePEc:ags:miscpa:11842

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Related research
Keywords: TIME-VARYING EFFICIENCY; PANEL DATA; DAIRY; Research and Development/Tech Change/Emerging Technologies; O0; Q1;

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References listed on IDEAS
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.:
  1. George E. Battese & Sohail J. Malik & Manzoor A. Gill, 1996. "An Investigation Of Technical Inefficiencies Of Production Of Wheat Farmers In Four Districts Of Pakistan," Journal of Agricultural Economics, Blackwell Publishing, vol. 47(1-4), pages 37-49. [Downloadable!] (restricted)
  2. Kumbhakar, Subal C & Hjalmarsson, Lennart, 1995. " Decomposing Technical Change with Panel Data: An Application to the Public Sector," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(2), pages 309-23, June.
  3. Kumbhakar, Subal C. & Heshmati, Almas & Hjalmarsson, Lennart, 1997. "Temporal patterns of technical efficiency: Results from competing models," International Journal of Industrial Organization, Elsevier, vol. 15(5), pages 597-616, August. [Downloadable!] (restricted)
  4. Subal Kumbhakar & Almas. Heshmati, 1996. "Technical change and total factor productivity growth in swedish manufacturing industries," Econometric Reviews, Taylor and Francis Journals, vol. 15(3), pages 275-298. [Downloadable!] (restricted)
  5. Heshmati, Almas, 1998. "Efficiency Measurement in Rotating Panel Data," Applied Economics, Taylor and Francis Journals, vol. 30(7), pages 919-30, July. [Downloadable!] (restricted)
  6. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211. [Downloadable!] (restricted)
  7. C. R. Dryburgh & C. J. Doyle, 1995. "Distribution Of Research Gains Under Different Market Structures: The Impact Of Technological Change Within The Uk Dairy Industry," Journal of Agricultural Economics, Blackwell Publishing, vol. 46(1), pages 80-96. [Downloadable!] (restricted)
  8. Almas Heshmati & Subal C. Kumbhakar, 1997. "Estimation Of Technical Efficiency In Swedish Crop Farms: A Pseudo Panel Data Approach," Journal of Agricultural Economics, Blackwell Publishing, vol. 48(1-3), pages 22-37. [Downloadable!] (restricted)
  9. Coelli, Tim & Battese, George, 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(02), August. [Downloadable!]
  10. Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200. [Downloadable!] (restricted)
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  11. Baltagi, Badi H & Griffin, James M, 1988. "A General Index of Technical Change," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 20-41, February. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, . "Parametric Decomposition Of Output Growth," Working Papers 0204, University of Crete, Department of Economics. [Downloadable!]
  2. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February. [Downloadable!] (restricted)
  3. Kelvin Balcombe & Iain Fraser & Jae H. Kim, 2006. "Estimating technical efficiency of Australian dairy farms using alternative frontier methodologies," Applied Economics, Taylor and Francis Journals, vol. 38(19), pages 2221-2236, October. [Downloadable!] (restricted)
  4. Vangelis Tzouvelekas & Dimitra Vouvaki & Anastasios Xepapadeas, 2006. "Total Factor Productivity Growth and the Environment: A Case for Green Growth Accounting," Working Papers 0617, University of Crete, Department of Economics. [Downloadable!]
    Other versions:
  5. David I. Stern, 2004. "Diffusion of Emissions Abating Technology," Rensselaer Working Papers in Economics 0420, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
  6. Suzanne O’Neill & Alan Matthews, 2001. "Technical Change and Efficiency in Irish Agriculture," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 263-284. [Downloadable!]
  7. René Fahr & Uwe Sunde, 2006. "Regional dependencies in job creation: an efficiency analysis for Western Germany," Applied Economics, Taylor and Francis Journals, vol. 38(10), pages 1193-1206, June. [Downloadable!] (restricted)
    Other versions:
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