A toolbox for calculating and decomposing Total Factor Productivity indices
Total Factor Productivity Toolbox is a new set of functions to calculate the main Total Factor Productivity (TFP) indices and their decompositions, based on Shephard's distance functions, and using Data Envelopment Analysis (DEA) programming techniques. The package includes code for the standard Malmquist, Moorsteen–Bjurek, price-weighted and share-weighted TFP indices, allowing for the choice of orientation (input or output), reference period (base, comparison, geometric mean), returns to scale (variable or constant), and specific decompositions (aggregate, or identifying scale effects, as well as input and output mix effects). Classic definitions of TFP corresponding to the Laspeyres, Paasche, Fisher, or Törnqvist formulas can also be calculated as particular cases. This paper describes the methodology and implementation of the productivity functions in MATLAB. We compare the results corresponding to the different definitions by studying productivity trends in the US agriculture at the individual state level.
|Keywords||Data envelopment analysis, Fisher, Malmquist, Moorsteen–Bjurek, Total factor productivity, Törnqvist|
|Persistent URL||dx.doi.org/10.1016/j.cor.2019.104853, hdl.handle.net/1765/122430|
|Journal||Computers & Operations Research|
Balk, B.M, Barbero, J. (Javier), & Zofío, J.L. (José L.). (2020). A toolbox for calculating and decomposing Total Factor Productivity indices. Computers & Operations Research, 115. doi:10.1016/j.cor.2019.104853