Decomposing productivity growth allowing efficiency gains and price-induced technical progress

A.G.J.M. Oude Lansink, E. Silva, S. Stefanou

Research output: Contribution to journalArticleAcademicpeer-review

23 Citations (Scopus)

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 languageEnglish
Pages (from-to)497-518
JournalEuropean Review of Agricultural Economics
Volume27
Issue number4
DOIs
Publication statusPublished - 2000

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