Where is the primal Total Factor Productivity Index?
A primal index of productivity change is introduced which decomposes exactly in three components: technical change, technical efficiency change and average scale economies (radial scale change). The proposed index is invariant to movement along indifference surfaces and it collapses to the Malmquist index if the technology is locally constant returns to scale. It is the best linear approximation of the Orea (2002) translog productivity index (primal growth accounting). The existing proposals for the primal productivity index are discussed in detail. An empirical illustration on real data is provided to show the magnitude of the residuals associated to the lack of indifference surface invariance for these indexes.
|Date of creation:||Nov 2010|
|Contact details of provider:|| Postal: St. Lucia, Qld. 4072|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:qld:uqcepa:52. 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: (SOE IT)
If references are entirely missing, you can add them using this form.