Index number and factor demand approaches to the estimation of productivity

by David H. Good

Publisher: National Bureau of Economic Research in Cambridge, MA

Written in English
Published: Pages: 88 Downloads: 569
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Subjects:

  • Industrial productivity -- Measurement.,
  • Industrial productivity -- Econometric models.

Edition Notes

StatementDavid H. Good, M. Ishaq Nadiri, Robin C. Sickles.
SeriesNBER working paper series -- working paper 5790, Working paper series (National Bureau of Economic Research) -- working paper no. 5790.
ContributionsNadiri, M. Ishaq., Sickles, Robin., National Bureau of Economic Research.
The Physical Object
Pagination88 p. :
Number of Pages88
ID Numbers
Open LibraryOL22411658M

Alvanchi M, Saboohi M () The growth of productivity in Iranian wheat production: an empirical study. Sixth Conference of Agricultural Economics of Iran. Proceeding book, Amirtaimoori S, Chizari AH () Dynamic self-sufficiency of seed corn production in Iran: the approach for calculating the total productivity of production factors. Contact QSM. Corporate Ridge Suite McLean, VA [email protected] Total Factor Productivity Dynamics in Sub-Saharan Africa: Malmquist Index Approach Alilu Noah[a],*; Hyacinth E. Ichoku[a] [a] Department of Economics, University of Nigeria Nsukka, Nigeria. *Corresponding author. Received 19 March ; accepted 26 May Published online 30 June Abstract A panel dataset of 30 countries in Sub-Saharan Africa. meaningfully defined, to derive a price index from the value of sales and physical pro-duction. They show that failing to disentangle demand and TFP shocks leads to under-estimate new entrants’ contribution to productivity growth. De Loecker () exploits theoretical restrictions to isolate physical productivity from confounding demand factors.

  Diewert () argues that an index approach to TFP measurement is far superior to econometric estimation because it requires fewer underlying assumptions about the behaviour of firms (e.g. profit maximization versus maximizing shareholder value). An analysis of productivity at CN and CP is undertaken using the index number approach below. The American Association of Cost Engineers defines productivity as a “relative measure of labor efficiency, either good or bad, when compared to an established base or norm.” This white paper focuses on the ability to create, change, and manage labor factors affecting productivity . At the National Restaurant Association, we strive to help every one of our members build customer loyalty, find financial success and provide rewarding careers in foodservice.   The productivity index can also be expanded to a semi-steady state Darcy law type formulation where: J k h/ (u B (ln (re/rw) – – S)) Where k = permeability, md h = net thickness, ft u = fluid viscosity, cp B = formation volume factor, rb/STB re = external boundary radius, ft rw = wellbore radius, ft S = Skin.

Multi-factor productivity -Real product perunit of capital - Real product per unit of labor 1 1 1 1 1 1 1 1 YEAR FIGURE Companson of indexes of partial and multi-factor productivity for the private domestic economy, ( = ). (3) Improvement in productivity is yet another factor. To improve productivity organisation needs better employees with skills and potential. Productivity leads to growth but depends on the demands for the product of the enterprise in the market. Higher demand may lead to . The objective of this paper is to apply the Translog Stochastic Frontier production model (SFA) and Data Envelopment Analysis (DEA) to estimate efficiencies over time and the Total Factor Productivity (TFP) growth rate for Bangladeshi rice crops (Aus, Aman and Boro) throughout the most recent data available comprising the period – the total factor productivity (TFP) approach, but which makes use of accounting data on individual companies. This is an important difference from the traditional approaches which use macroeconomic data, such as gross value added or net capital stock, to estimate the productivity of the Czech agricultural sector. 2 Total Factor Productivity.

Index number and factor demand approaches to the estimation of productivity by David H. Good Download PDF EPUB FB2

We discuss only two approaches to productivity analysis: the index number approach and use of factor demand models. Both static and dynamic versions are used to specify the underlying technology and then estimate the factors that contribute positively or negatively to productivity by: The chained multilateral index by Good et al.

() was used to estimate the actual Total Factor Productivity for individual establishments. In this study, a simple linear regression equation was. Index Number and Factor Demand Approaches to the Estimation of Productivity 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 Cited by: The index number approach is designed to readily calculate a first order approximation of total factor productivity.

The other approach, which we call the econometric approach is a flexible technique to identify the sources of productivity growth by explicitly specify- ing the underlying cost or. (PDF) Index Number and Factor Demand Approaches to the Estimation of Productivity | Robin Sickles - In this paper we review a number of analytical methods and issues related to identifying and estimating the source of productivity growth.

Index Number and Factor Demand Approaches to the Estimarion of Productivity. Article (PDF Available) February with 44 Reads How we measure 'reads'. Downloadable. 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.

This paper provides an introduction to productivity measurement using index number techniques. Attention is given to the construction of productivity series using common index number formulae, the economic and axiomatic approaches to selecting an index number formula, and the use of chaining.

Special attention is also given to measuring physical capital inputs and quality adjusted labour inputs. A study conducted by Lee et al. to estimate the Malmquist productivity index and its two components for the South Korean manufacturing sectors during the period –, found that productivity was achieved through technical progress, and efficiency change negatively contributed to the productivity growth.

It is the inverse of the productivity factor MU. Manhours per Unit is the more typical unit of measure in terms of keeping historical data, but UM might make more sense to the estimator and reviewer. Example Calculation: Activity Quantity = 4, square feet (sf) of concrete form Productivity = 6 sf/MH (which is the same as MH/sf).

A further advantage of the index number approach is that it is possible to attribute changes in TFP to inputs and outputs. The total factor productivity approach. A simplified Tornquist index (Diewert, ) permits analysis of the productivity of a single airport over a period of time. However, there is considerable value in comparing the.

Get this from a library. Index number and factor demand approaches to the estimation of productivity. [David H Good; M Ishaq Nadiri; Robin Sickles; National Bureau of Economic Research.]. Good D, Nadiri M, Sickles R () Index number and factor demand approaches to the estimation of poductivity, vol II.

Microeconometrics, Basil Blackwell, Oxford Google Scholar Gregory A, Whittaker J, Yan X () Corporate social performance, competitive advantage, earnings persistence and. level estimates of markups, and how we estimate markups at the firm-level.

C.1 Input-Output and Aggregate Data Our measure of real GDP growth, and growth in real factor quantities (labor and capi-tal) come from the San Francisco Federal Reserve’s dataset on total factor productivity cost factors separately from demand factors.

This paper also demonstrates that demand factors significantly influence the conventional measure of service sector productivity. Keywords: Productivity, Service quality, Market structure, Mixed logit model. JEL classification: L10, L   Saleem Shaik, Joseph Atwood, A Comparative Study of Alternative Approaches to Estimate Productivity, Journal of Quantitative Economics, /sx, ().

Crossref Matthew Sveum, Michael Sykuta, The Effect of Franchising on Establishment Performance in the U.S. Restaurant Industry, Cornell Hospitality Quarterly, among alternative index number formulas 18 5.

the exact index number approach and superlative index numbers 20 6. production function based measures of tfpg 27 7. cost function based measures 38 8. the diewert-morrison productivity measure and decompositions 43 9.

the divisia approach 47 growth accounting 54 conclusions 60 references Downloadable. In this paper we discuss recent advances in modeling and estimating dynamic factor demand models, and review the use of such models in analyzing the production structure, the determinants of variable and quasi-fixed factors, and productivity growth.

The paper also discusses the traditional approach to productivity analysis based on the Divisia index number methodology. Dynamic Factor Demand Models and Productivity Analysis M. Ishaq Nadiri and Ingmar R. Prucha Introduction The traditional approach to productivity analysis is to use the Divisia index number methodology.

This approach has the advantage of simplicity as well as the benefit of not requiring direct estimation of the underlying technology. Different concepts of productivity Partial factor productivity Total factor productivity. Non-frontier approaches to productivity growth measurement Four alternative concepts of TFPG Profitability-based TFPG indices Divisia and Törnqvist TFPG indices Comparison of traditional TFPG indices: a fictitious example.

Forecasting human resource demand is the process of estimating the future human resource requirement of right quality and right number. As discussed earlier, potential human resource requirement is to be estimated keeping in view the organisation's plans over a given period of time.

Analysis of employment trends; replacement needs of employees due to death, resignations. In this study, total factor productivity (TFP) performance of livestock sub-sector in Punjab, Pakistan was estimated for the time period of to The objective was to analyse the effect of government policy changes on livestock sector performance.

For this purpose index number approach namely. Also, partial factor productivity equations are easier to relate to specific processes because they only deal with one input.

To calculate partial factor productivity, let’s say that a company produces $15, worth of output and the weekly value of all inputs (labor, materials, and other costs) is $8,   This book, first published inprovides a comprehensive, integrated body of knowledge concerning agricultural productivity research, highlighting both its strengths and limitations.

This book will be of value to scholars and research leaders for the knowledge it conveys of future productivity research, and will also be of interest to students of environmental studies.

In this approach, productivity is evaluated by asking both superiors, peers, and subordinates. The output is the company's net sales and the input is the number of hours. The productivity of. Our approach to measure the total factor productivity is based on the work of Marion Dovis’s work 2(), which is estimated by various methods, TFP from a panel of Turkish companies on a period of to For our approach estimation of the total factor productivity in.

7 MEASURING TOTAL FACTOR PRODUCTIVITY AND VARIABLE FACTOR UTILISATION: SECTOR APPROACH, THE CASE OF LATVIA additional cost of capital is given by convex function Φ(I/K) where I/K denotes the investment to capital ratio. Variable W is the base salary, L is the number of workers, G(E, H), and.

1, 23) 1. Labour economics seeks to understand the functioning and dynamics of the markets for wage is a commodity that is supplied by labourers in exchange for a wage paid by demanding firms. Labour markets or job markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services.

This paper assesses the evolution of output and productivity in the Greek banking industry for the period Three main categories of bank output were estimated based on modern theoretical approaches, while for the aggregation and estimation of output and inputs and the estimation of productivity (partial and total factor) we relied on the index number method (Tornqvist index).

The Pareto principle states that for many outcomes roughly 80% of consequences come from 20% of the causes (the “vital few”).

Other names for this principle are the 80/20 rule, the law of the vital few, or the principle of factor sparsity. Management consultant Joseph M. Juran developed the concept in the context of quality control, and improvement, naming it after Italian economist.

Estimating Productivity of Software Development Using the Total Factor Productivity Approach Regular Paper Machek Ondrej1,*, Hnilica Jiri2 and Hejda Jan3 1 University of Economics, Prague, Department of Business Economics, Faculty of Business Administration productivity index [8] and the Hicks‐Moorsteen.A number of complex and interdepen­ dent factors can influence productivity on a con-Table factors seriously impairing construction productivity Category Project Conditions Market Conditions Design and Procurement Construction Management Labour Government Policy Education and Training Factors Weather variability Material shortages.

Total factor productivity (TFP) is a measure of productivity calculated by dividing economy-wide total production by the weighted average of inputs i.e.

labor and capital. It represents growth in real output which is in excess of the growth in inputs such as labor and capital. Productivity is a measure of the relationship between outputs (total product) and inputs i.e.

factors of production.