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Alternative Measures of Total Factor Productivity Growth

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  • Raa, T. ten
  • Shestalova, V.

    (Tilburg University, Center for Economic Research)

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    Abstract

    The four main approaches to the measurement of total factor productivity (TFP)-growth and its decomposition are (i) Solow's residual analysis, (ii) the Index Number Approach, (iii) Input-Output Analysis (IO), and (iv) Data Envelopment Analysis (DEA).The corresponding measures of TFP growth are based on different assumptions, which we expose and interrelate.The Solow Residual serves as the benchmark for our comparisons.The interrelationships between the alternative measures permit an interpretation of the differences among them.We consolidate the four alternative measures in a common framework.

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-54.

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    Date of creation: 2006
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    Handle: RePEc:dgr:kubcen:200654

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

    Related research

    Keywords: TFP; Solow residual; Index numbers; Input-output; DEA;

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    1. Pirkko Aulin-Ahmavaara, 1999. "Effective Rates of Sectoral Productivity Change," Economic Systems Research, Taylor & Francis Journals, vol. 11(4), pages 349-363.
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    Cited by:
    1. Burda, Michael C & Severgnini, Battista, 2010. "Solow Residuals without Capital Stocks," CEPR Discussion Papers 7990, C.E.P.R. Discussion Papers.
    2. Raa, T. ten, 2006. "The Theory of Benchmarking and the Measurement of Industrial Organization," Discussion Paper 2006-53, Tilburg University, Center for Economic Research.

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