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Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models


  • Kumbhakar, Subal C
  • Heshmati, Almas
  • Hjalmarsson, Lennart


This paper deals with modeling total factor productivity (TFP) growth in a flexible manner using panel data. Several competing parametric models are used to explore whether there are any similarities in the estimates of TFP growth and technical change among these models. Using a primal approach, we decompose TFP growth into different components. The models are then used to measure productivity and technical change in the Swedish cement industry. In general, the results are found to be model dependent and often conflicting, although much less so for returns to scale and overall productivity growth. Copyright 1999 by The editors of the Scandinavian Journal of Economics.

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  • Kumbhakar, Subal C & Heshmati, Almas & Hjalmarsson, Lennart, 1999. " Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models," Scandinavian Journal of Economics, Wiley Blackwell, vol. 101(3), pages 405-424, September.
  • Handle: RePEc:bla:scandj:v:101:y:1999:i:3:p:405-24

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    References listed on IDEAS

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    Cited by:

    1. Shawn Klimek & James Schmitz & Timothy Dunne, 2010. "Does Foreign Competition Spur Productivity? Evidence From Post WWII U.S. Cement Manufacturing," 2010 Meeting Papers 805, Society for Economic Dynamics.
    2. Badi Baltagi & Peter Egger & Michaela Kesina, 2015. "Sources of productivity spillovers: panel data evidence from China," Journal of Productivity Analysis, Springer, vol. 43(3), pages 389-402, June.
    3. Marijn Verschelde & Michel Dumont & Bruno Merlevede & Glenn Rayp, 2014. "A constrained nonparametric regression analysis of factor-biased technical change and TFP growth at the firm level," Working Paper Research 266, National Bank of Belgium.
    4. Achraf TARSIM, 2008. "L’efficience du secteur ferroviaire européen : Analyse stochastique des effets de la réforme et de la qualité des services," CIRIEC Working Papers 0809, CIRIEC - Université de Liège.
    5. Badi H. Baltagi & Peter H. Egger & Michaela Kesina, 2016. "Firm‐Level Productivity Spillovers in China's Chemical Industry: A Spatial Hausman‐Taylor Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(1), pages 214-248, January.
    6. Heshmati, Almas & Kumbhakar, Subal C., 2010. "Technical Change and Total Factor Productivity Growth: The Case of Chinese Provinces," IZA Discussion Papers 4784, Institute for the Study of Labor (IZA).
    7. Almas Heshmati & Subal C. Kumbhakar, 2014. "A general model of technical change with an application to the OECD countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(1), pages 25-48, January.
    8. Allan N. Rae & Hengyun Ma & Jikun Huang & Scott Rozelle, 2006. "Livestock in China: Commodity-Specific Total Factor Productivity Decomposition Using New Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 680-695.
    9. Heikkila, Anna-Maija & Myyra, Sami & Pietola, Kyosti, 2012. "Effects of Economic Factors on Adoption of Robotics and Consequences of Automation for Productivity Growth of Dairy Farms," Working Papers 144002, Factor Markets, Centre for European Policy Studies.
    10. Oh, Dong-hyun, 2015. "Productivity growth, technical change and economies of scale of Korean fossil-fuel generation companies, 2001–2012: A dual approach," Energy Economics, Elsevier, vol. 49(C), pages 113-121.
    11. Timothy Dunne & Shawn Klimek & James Schmitz, Jr., 2010. "Competition and Productivity: Evidence from the Post WWII U.S. Cement Industry," Working Papers 10-29, Center for Economic Studies, U.S. Census Bureau.
    12. Sangho Kim & Gwangho Han, 2001. "A Decomposition of Total Factor Productivity Growth in Korean Manufacturing Industries: A Stochastic Frontier Approach," Journal of Productivity Analysis, Springer, vol. 16(3), pages 269-281, November.
    13. Fuller, Frank & Huang, Jikun & Ma, Hengyun & Rozelle, Scott, 2006. "Got milk? The rapid rise of China's dairy sector and its future prospects," Food Policy, Elsevier, vol. 31(3), pages 201-215, June.
    14. Banerjee, Saugata & Heshmati, Almas & Wihlborg, Clas, 1999. "The Dynamics of Capital Structure," SSE/EFI Working Paper Series in Economics and Finance 333, Stockholm School of Economics, revised 21 Aug 2000.
    15. Oh, Dong-hyun & Lee, Yong-Gil, 2016. "Productivity decomposition and economies of scale of Korean fossil-fuel power generation companies: 2001–2012," Energy, Elsevier, vol. 100(C), pages 1-9.
    16. Heikkilä, Anna-Maija & Myyrä, Sami, 2014. "Productivity growth of dairy farms having conventional vs. automatic milking system," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182648, European Association of Agricultural Economists.
    17. Shiu, Alice & Heshmati, Almas, 2006. "Technical Change and Total Factor Productivity Growth for Chinese Provinces: A Panel Data Analysis," Ratio Working Papers 98, The Ratio Institute.
    18. Subal Kumbhakar & Kai Sun, 2012. "Estimation of TFP growth: a semiparametric smooth coefficient approach," Empirical Economics, Springer, vol. 43(1), pages 1-24, August.
    19. Williams, Jonathan & Nguyen, Nghia, 2005. "Financial liberalisation, crisis, and restructuring: A comparative study of bank performance and bank governance in South East Asia," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2119-2154, August.
    20. Songqing Jin & Hengyun Ma & Jikun Huang & Ruifa Hu & Scott Rozelle, 2010. "Productivity, efficiency and technical change: measuring the performance of China’s transforming agriculture," Journal of Productivity Analysis, Springer, vol. 33(3), pages 191-207, June.

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