IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v35y2005i2p117-38.html
   My bibliography  Save this article

Which Matters Most to the Estimation of Efficiency and Productivity Growth in State Manufacturing: Method or Measurement?

Author

Listed:
  • Primont, Diane F.

    (Southeast MO State U)

  • Domazlicky, Bruce R.

    (Southeast MO State U)

Abstract

The measurement of efficiency and productivity growth at the regional level requires the researcher to select among several choices for capital estimation and methodology. We look at two capital estimation techniques, by Munnell and by Garofalo and Yamarik, and two methodologies, data envelopment analysis and stochastic frontier estimation. The measurement of efficiency does not appear to be very sensitive to the choice of capital or technique. However, the measurement of productivity is sensitive to the choice of an estimation technique for a given measure of capital.

Suggested Citation

  • Primont, Diane F. & Domazlicky, Bruce R., 2005. "Which Matters Most to the Estimation of Efficiency and Productivity Growth in State Manufacturing: Method or Measurement?," The Review of Regional Studies, Southern Regional Science Association, vol. 35(2), pages 117-138.
  • Handle: RePEc:rre:publsh:v:35:y:2005:i:2:p:117-38
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/106/57
    Download Restriction: no

    References listed on IDEAS

    as
    1. Alicia H. Munnell, 1991. "Is there a shortfall in public capital investment? An overview," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 23-35.
    2. Mullen, John K. & Williams, Martin, 1990. "Explaining total factor productivity differentials in urban manufacturing," Journal of Urban Economics, Elsevier, vol. 28(1), pages 103-123, July.
    3. Gasper A. Garofalo & Steven Yamarik, 2002. "Regional Convergence: Evidence From A New State-By-State Capital Stock Series," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 316-323, May.
    4. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February.
    5. Weber, William L. & Domazlicky, Bruce R., 1999. "Total factor productivity growth in manufacturing: a regional approach using linear programming," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 105-122, January.
    6. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    7. LĂ©opold Simar, 2003. "Detecting Outliers in Frontier Models: A Simple Approach," Journal of Productivity Analysis, Springer, vol. 20(3), pages 391-424, November.
    8. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Capital; Data Envelopment; Frontier Estimations; Manufacturing; Productivity; Regional;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    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:rre:publsh:v:35:y:2005:i:2:p:117-38. 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: (Christopher Yencha). General contact details of provider: http://www.srsa.org .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.