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Parametric Decomposition of Output Growth Using A Stochastic Input Distance Function

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  • Giannis Karagiannis
  • Peter Midmore
  • Vangelis Tzouvelekas

Abstract

This article proposes a tractable approach for analyzing the sources of TFP changes (i.e., technical change, changes in technical and allocative inefficiency, and the scale effect) in a multi-output setting, while retaining the single-equation nature of the econometric procedure used to estimate the parameters of the underlying technology. The proposed approach relies on Bauer's cost function-based decomposition of TFP changes and the duality between input distance and cost functions. The empirical results are based on a sample of 121 UK livestock farms observed over the period 1983–92 and a translog input distance function. Copyright 2004, Oxford University Press.

Suggested Citation

  • Giannis Karagiannis & Peter Midmore & Vangelis Tzouvelekas, 2004. "Parametric Decomposition of Output Growth Using A Stochastic Input Distance Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1044-1057.
    • Handle: RePEc:oup:ajagec:v:86:y:2004:i:4:p:1044-1057
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    File URL: http://hdl.handle.net/10.1111/j.0002-9092.2004.00652.x
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