IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v35y1989i6p757-767.html
   My bibliography  Save this article

Analysis of Profit-Linked Total-Factor Productivity Measurement Models at the Firm Level

Author

Listed:
  • David M. Miller

    (College of Commerce & Business Administration, University of Alabama, Tuscaloosa, Alabama 35487-9725)

  • P. Mohan Rao

    (College of Commerce & Business Administration, University of Alabama, Tuscaloosa, Alabama 35487-9725)

Abstract

The purpose of the paper is to present the results of a comparative analysis of two main-line productivity measurement procedures: the American Productivity Center's total factor model, and the Ethyl Corporation's "Profitability = Productivity + Price Recovery" model. Several fundamental differences between the two approaches are identified and analyzed. As demonstrated in the paper, differences such as the method of deflation can substantially affect the proper choice of the more appropriate procedure to use in a given corporate setting.

Suggested Citation

  • David M. Miller & P. Mohan Rao, 1989. "Analysis of Profit-Linked Total-Factor Productivity Measurement Models at the Firm Level," Management Science, INFORMS, vol. 35(6), pages 757-767, June.
  • Handle: RePEc:inm:ormnsc:v:35:y:1989:i:6:p:757-767
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.35.6.757
    Download Restriction: no

    References listed on IDEAS

    as
    1. Leech, Dennis, 1985. "Ownership Concentration and the Theory of the Firm : A Simple-Game-Theoretic Approach to Applied US Corporations in the 1930's," The Warwick Economics Research Paper Series (TWERPS) 262, University of Warwick, Department of Economics.
    2. Guillermo Owen, 1972. "Multilinear Extensions of Games," Management Science, INFORMS, vol. 18(5-Part-2), pages 64-79, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. E. Grifell-Tatjé & C. A. K. Lovell, 1999. "Profits and Productivity," Management Science, INFORMS, pages 1177-1193.
    2. Sahoo, Biresh K. & Tone, Kaoru, 2009. "Radial and non-radial decompositions of profit change: With an application to Indian banking," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1130-1146, August.
    3. Parkan, Celik, 1996. "Measuring the performance of hotel operations," Socio-Economic Planning Sciences, Elsevier, vol. 30(4), pages 257-292, December.
    4. Robert Chambers, 2008. "Stochastic productivity measurement," Journal of Productivity Analysis, Springer, vol. 30(2), pages 107-120, October.
    5. Suho Bae, 2009. "The responses of manufacturing businesses to geographical differences in electricity prices," The Annals of Regional Science, Springer;Western Regional Science Association, pages 453-472.
    6. Parkan, Celik, 2007. "Verifying OCRA's economic sense: Response to Agrell and West (2001)," International Journal of Production Economics, Elsevier, vol. 107(1), pages 274-278, May.
    7. Marte Bjørnsen & Gudbrand Lien & Timo Sipiläinen, 2011. "The productivity performance of Finnish and Norwegian dairy farms: the effect of joining/not joining the EU," ERSA conference papers ersa11p793, European Regional Science Association.
    8. Agrell, Per J. & Martin West, B., 2001. "A caveat on the measurement of productive efficiency," International Journal of Production Economics, Elsevier, vol. 69(1), pages 1-14, January.
    9. Oral, Muhittin & Cinar, Unver & Chabchoub, Habib, 1999. "Linking industrial competitiveness and productivity at the firm level," European Journal of Operational Research, Elsevier, vol. 118(2), pages 271-277, October.
    10. Subal Kumbhakar & Frank Asche & Ragnar Tveteras, 2013. "Estimation and decomposition of inefficiency when producers maximize return to the outlay: an application to Norwegian fishing trawlers," Journal of Productivity Analysis, Springer, vol. 40(3), pages 307-321, December.
    11. C. A. Knox Lovell & E. Grifell-Tatjé, 1996. "Profits and Productivity," Center for Financial Institutions Working Papers 97-18, Wharton School Center for Financial Institutions, University of Pennsylvania.

    More about this item

    Keywords

    productivity; analysis; model;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:35:y:1989:i:6:p:757-767. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc). General contact details of provider: http://edirc.repec.org/data/inforea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.