Abstract
Time- and firm-specific output technical efficiency measures are generated within a price-induced technological change framework. The firm-specific production frontier incorporates past prices as an argument encouraging innovation and a time trend to account for exogenous technical change. The theoretical model is used to decompose total factor productivity into a scale effect, an efficiency change effect and a technological change effect. Input bias arising from exogenous technical change and price-induced innovation is investigated using a multiple-input measure of biased technical change. The empirical focus is on Dutch pot-plant firms during the period 1979-1995 using the maximum entropy estimation method.
Original language | English |
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Pages (from-to) | 497-518 |
Journal | European Review of Agricultural Economics |
Volume | 27 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2000 |
Keywords
- Bias in technical change
- Inter-firm efficiency
- Maximum entropy
- Price-induced technical change