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Debreu's Coefficient of Resource Utilization, the Solow Residual and TPF: The Connection by Leontief Preferences

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  • Raa, T. ten

    (Tilburg University, Center for Economic Research)

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    Abstract

    Debreu s coefficient of resource utilization 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 Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-111.

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    Date of creation: 2003
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    Handle: RePEc:dgr:kubcen:2003111

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    Web page: http://center.uvt.nl

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    Keywords: efficiency; productivity; growth; technological change;

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    1. Finn Førsund & Nikias Sarafoglou, 2002. "On the Origins of Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 23-40, January.
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