Parametric Approaches to Productivity Measurement: A Comparison among Alternative Models

• Published in: The Scandinavian journal of economics Vol. 101; no. 3; pp. 405 - 424
• Main Authors: Kumbhakar, Subal C., Heshmati, Almas, Hjalmarsson, Lennart
• Format: Journal Article
• Language: English
• Published: Oxford, UK and Cambridge, USA Blackwell Publishers Ltd 01.09.1999; Blackwell Publishers; Wiley Blackwell; Basil Blackwell Ltd., etc; Blackwell Publishing Ltd
• Series: Scandinavian Journal of Economics
• Subjects: Cement industry; Comparative analysis; Economic growth models; Economic indices; Economic models; Economies of scale; general index; Kilns; panel data; Parametric models; production function; Production functions; Productivity; Productivity growth; Productivity measurement; Returns to scale; Studies; technical change; Technological change; Time trend; Sweden; Time trend; Technical change; Panel data; Production function; General index
• ISSN: 0347-0520; 1467-9442; 1467-9442
• DOI: 10.1111/1467-9442.00163

This paper deals with modeling total factor productivity (TFP) growth in a flexible manner using panel data. Several competing parametric models are used to explore whether there are any similarities in the estimates of TFP growth and technical change among these models. Using a primal approach, we decompose TFP growth into different components. The models are then used to measure productivity and technical change in the Swedish cement industry. In general, the results are found to be model dependent and often conflicting, although much less so for returns to scale and overall productivity growth.