Index Number and Factor Demand Approaches to the Estimation of Productivity
89 Pages Posted: 4 Feb 1997 Last revised: 29 Oct 2022
Date Written: October 1996
Abstract
In this paper we review a number of analytical methods and issues related to identifying and estimating the source of productivity growth. The two major methods used in measuring productivity growth -- index number and econometric estimation approach -- are briefly discussed. Substantive issues such as the contribution of R&D capital and R&D spillovers, infrastructure capital, allocative distortions, nature of the market structure and technological advancement on productivity growth at various levels of aggregation are examined. The attributes of the static and dynamic factor demand models used to estimate the contribution of different inputs to productivity growth are described and the evaluation of the production process changes in response to exogenous factors and their impact on productivity growth are discussed. Econometric issues and data considerations for proper estimation of the underlying structural models are noted briefly as well.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
-
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
-
The Dynamics of Productivity in the Telecommunications Equipment Industry
By G. Steven Olley and Ariel Pakes
-
Plants and Productivity in International Trade
By Andrew B. Bernard, Jonathan Eaton, ...
-
Plants and Productivity in International Trade
By Andrew B. Bernard, Jonathan Eaton, ...
-
Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants
By Nina Pavcnik
-
Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco
By Sofronis Clerides, Saul Lach, ...
-
Aggregate Productivity Growth: Lessons from Microeconomic Evidence
By Lucia Foster, John Haltiwanger, ...
-
Estimating Production Functions Using Inputs to Control for Unobservables
By James A. Levinsohn and Amil Petrin