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The role of environmental factors in growth accounting

  • Byung M. Jeon

    (Korea Institute of Public Finance, Seoul, Korea)

  • Robin C. Sickles

    (Department of Economics, Rice University, USA)

This paper explores a relatively new methodology, the directional distance function method, to analyse productivity growth. The method allows us to explicitly evaluate the role that undesirable outputs of the economy, such as carbon dioxide and other greenhouse gases, have on the frontier production process which we specify as a piecewise linear and convex boundary function. We decompose productivity growth into efficiency change (catching up) and technology change (innovation). We test the statistical significance of the estimates using recently developed bootstrap methods. We also explore implications for growth of total factor productivity in the OECD and Asian economies. Copyright © 2004 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 19 (2004)
Issue (Month): 5 ()
Pages: 567-591

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Handle: RePEc:jae:japmet:v:19:y:2004:i:5:p:567-591
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  1. V. Eldon Ball & Rolf Fare & Shawna Grosskopf & Richard Nehring, 2001. "Productivity of the U.S. Agricultural Sector: The Case of Undesirable Outputs," NBER Chapters, in: New Developments in Productivity Analysis, pages 541-586 National Bureau of Economic Research, Inc.
  2. Simar, L. & Wilson, P.W., . "Sensitivity analysis of efficiency scores: how to bootstrap in nonparametric frontier models," CORE Discussion Papers RP 1304, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. GIJBELS, Irène & MAMMEN, Enno & PARK, Byeong U. & SIMAR, Léopold, 1997. "On estimation of monotone and concave frontier functions," CORE Discussion Papers 1997031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Simar, L. & Wilson, P.W., 1998. "A General Methodology for Bootstrapping in Nonparametric Frontier Models," Papers 9811, Catholique de Louvain - Institut de statistique.
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