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Technical change: It should be positive and make sense!

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  • Garcia, Fernando
  • César de Souza, Rogério
  • Pires, Jorge Oliveira

Abstract

We present the results of eight models that differ with respect to the time behavior of technical inefficiency and the presence of country heterogeneity. When taken into account, heterogeneity raises average technical change estimates, however technical progress rankings become counter-intuitive.

Suggested Citation

  • Garcia, Fernando & César de Souza, Rogério & Pires, Jorge Oliveira, 2008. "Technical change: It should be positive and make sense!," Economics Letters, Elsevier, vol. 100(3), pages 388-391, September.
    • Handle: RePEc:eee:ecolet:v:100:y:2008:i:3:p:388-391
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    References listed on IDEAS

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    3. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12425.
    4. Luis Orea, 2002. "Parametric Decomposition of a Generalized Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 18(1), pages 5-22, July.
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    6. Kneller, Richard & Andrew Stevens, Philip, 2003. "The specification of the aggregate production function in the presence of inefficiency," Economics Letters, Elsevier, vol. 81(2), pages 223-226, November.
    7. Kumbhakar, Subal C. & Wang, Hung-Jen, 2005. "Estimation of growth convergence using a stochastic production frontier approach," Economics Letters, Elsevier, vol. 88(3), pages 300-305, September.
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    9. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
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    Cited by:

    1. Dimitris Christopoulos & Miguel León-Ledesma, 2009. "Efficiency and frontier technology in the aftermath of recessions: international evidence," Studies in Economics 0922, School of Economics, University of Kent.
    2. Gloria O. Dzeha & Joshua Abor & Festus Turkson & Elikplimi Agbloyor, 2018. "Technical Efficiency and Technical Change in Africa: The Role of Money from the Diasporas," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(7), pages 177-177, July.

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