Developments in Econometric Analyses of Productivity Measurement and

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Studies in Productivity Analysis

Ali Dogramaci, Editor Cornell University Titles in the Series: Adam, Dogramaci; Productivity Analysis at the Organizational Level Dogramaci, Adam; Aggregate and Industry-Level Productivity Analysis Dogramaci; Productivity Analysis: A Range of Perspectives Dogramaci; Developments in Econometric Analyses of Productivity: Measurement and Modelling Issues

Developments in Econometric Analyses of Productivity Measurement and Modeling Issues

edited by A. Dogramaci

Kluwer-Nijhoff Publishing Boston The Hague London

Distributors for North America: Kluwer.Nijhoff Publishing Kluwer Boston, Inc. 190 Old Derby Street Hingham, Massachusetts 02043, U.S.A. Distributors outside North America: Kluwer Academic Publishers Group Distribution Centre P.O. Box 322 3300AH Dordrecht, The Netherlands

Library of Congress Cataloging in Publication Data Main entry under title: Developments in econometric analyses of productivity: Measurement and Modeling Issues (Studies in productivity analysis) Includes bibliographies and indexes. 1. industrial productivity-Mathematical models-Addresses, essays, lectures. I. Dogramaci, Ali. II. Series. HD56.D48 1983 338'.06'0724 82-6456 ISBN-13: 978-94-009-7408-1

e-ISBN-13: 978-94-009-7406-7

001: 10.1007/978-94-009-7406-7 Copyright © 1983 by Kluwer-Nijhoff Publishing Softcover reprint of the hardcover 1st edition 1983 No part of this book may be reproduced in any form by print, photoprint, microfilm, or any other means, without written permission from the publisher.

Contents

Contributing Authors

ix

1 Econometric Approaches to Productivity Measurement: A Brief Overview

,1

A. Dogramaci 1.1 Introduction 1.2 Index of Total Factor Productivity 1.3 Total Factor Productivity versus Labor Productivity 1.4 Influence of Imported Intermediate Inputs on Productivity Measures 1.5 Frontier Functions 1.6 Productivity of Inputs Used, Elasticity of Substitution, and Economies of Scale 1.7 Final Remarks References

2 Intertemporal Changes in the Levels of Regional Labor Productivity in Canadian Manufacturing M. Denny and M. Fuss 2.1 Introduction 2.2 A Conceptual Framework for Interregional and Intertemporal Productivity Comparisons 2.3 Interpreting Labor Productivity Growth 2.4 Trends in Labor Productivity 2.5 Labor Productivity in Two-Digit Regional Manufacturing Industries 2.6 Differences in the Levels of Labor Productivity 2.7 Labor Productivity Levels in Ontario and Quebec Two-Digit Industries 2.8 Summary References

1 2 4 5 5 6 9 11

17 17 18 21 22 24 29 31 33 34 v

vi

DEVELOPMENTS IN ECONOMETRIC ANALYSES OF PRODUCTIVITY

3

Growth Accounting in an Open Economy F.M. Gollop 3.1 Introduction 3.2 Value Added 3.3 Deliveries to Final Demand 3.4 Aggregation over Sectors in an Open Economy 3.5 Conclusion References

4 A Comparison of Alternative Frontier Cost Function Specifications T. Cowing, D. Reifschneider, and R. Stevenson 4.1 Introduction 4.2 The Frontier Cost Function 4.3 Data and Estimation Procedures 4.4 Frontier Estimation Results 4.5 Conclusion Notes References Append