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 |
|---|---|
| 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