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Measuring productivity change using alternative input–output concepts: A farm level application using FADN data

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  • Yann, de Mey
  • Mark, Vancauteren
  • Frankwin, van Winsen
  • Erwin, Wauters
  • Ludwig, Lauwers
  • Steven, Van Passel

Abstract

Multifactor productivity growth measures can be constructed using different input–output concepts. We estimate three distinct productivity growth measures respectively based on gross output, value added, and cash flow and discuss their economic interpretation. By making use of an index theory based decomposition model, we deviate from making neo-classical assumptions and acknowledge the role of profits. Applying the productivity growth index framework to farm level Flemish FADN data (1990–2003), we show that the estimated percentage growth of productivity is sensitive to the input–output concept under consideration. The empirical practicability of these complementary productivity growth measures depends on the purpose of measurement.

Suggested Citation

  • Yann, de Mey & Mark, Vancauteren & Frankwin, van Winsen & Erwin, Wauters & Ludwig, Lauwers & Steven, Van Passel, 2013. "Measuring productivity change using alternative input–output concepts: A farm level application using FADN data," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152364, International Agricultural Trade Research Consortium.
  • Handle: RePEc:ags:iatr13:152364
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    References listed on IDEAS

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    More about this item

    Keywords

    Index; input–output; MFP; productivity analysis; profits; Production Economics; Productivity Analysis; Research Methods/ Statistical Methods; C43; D24; Q12;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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