Template-Type: ReDIF-Paper 1.0
Author-Name: Balk, B.M.
Author-Name-Last: Balk
Author-Name-First: Bert
Author-Name: Zofío, J.L.
Author-Name-Last: Zofío
Author-Name-First: José
Title: The Many Decompositions of Total Factor Productivity Change
Abstract: Total factor productivity change, here defined as output quantity change di- vided by input quantity change, is the combined result of (technical) efficiency change, technological change, a scale effect, and input and output mix ef- fects. Sometimes allocative efficiency change is supposed to also play a role. Given a certain functional form for the productivity index, the problem is how to decompose such an index into factors corresponding to these five or six components. A basic insight offered in the present paper is that mean- ingful decompositions of productivity indices can only be obtained for indices which are transitive in the main variables. Using a unified approach, we ob- tain decompositions for Malmquist, Moorsteen-Bjurek, price-weighted, and share-weighted productivity indices. A unique feature of this paper is that all the decompositions are applied to the same dataset of a real-life panel of decision-making units so that the extent of the differences between the various decompositions can be judged.
Length: 150
Creation-Date: 2018-04-04
File-URL: https://repub.eur.nl/pub/104721/ERS-2018-003-LIS_v2.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2018-003-LIS
Classification-JEL: C43, D24, D61
Keywords: total factor productivity, index, decomposition, Malmquist, Moorsteen, Bjurek, Fisher, Törnqvist
Handle: RePEc:ems:eureri:104721