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Total Factor Productivity Growth and Technical Change in a Profit Function Framework

Listed author(s):
  • Giannis Karagiannis
  • George Mergos
Registered author(s):

    This paper develops a framework for measuring and decomposing TFP changes, within the parametric approach, by using directly the estimated parameters of a profit function. Two alternative relationships are derived for measuring and decomposing TFP changes via a profit function based on two alternative definitions of the rate of technical change, i.e., input- and output-based. Initially a long-run equilibrium framework is assumed and then the analysis is extended to the case of temporary equilibrium. The latter framework is applied to US agriculture by estimating a translog profit function and analyzing TFP changes during the period 1948–1994. Copyright Kluwer Academic Publishers 2000

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    File URL: http://hdl.handle.net/10.1023/A:1007891811797
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    Article provided by Springer in its journal Journal of Productivity Analysis.

    Volume (Year): 14 (2000)
    Issue (Month): 1 (July)
    Pages: 31-51

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    Handle: RePEc:kap:jproda:v:14:y:2000:i:1:p:31-51
    DOI: 10.1023/A:1007891811797
    Contact details of provider: Web page: http://www.springer.com

    Order Information: Web: http://www.springer.com/economics/microeconomics/journal/11123/PS2

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