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Productivity accounting for separable technologies

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  • Robert Chambers
  • Giannis Karagiannis
  • Vangelis Tzouvelekas

Abstract

This paper develops a method for decomposing total factor productivity growth in separable production technologies and uses it to examine the role of pest-damage prevention on agricultural productivity. The rate of technical change is decomposed into output-enhancing and damage-preventing components. Growth accounting cannot provide separate estimates of these two components of technical change, and instead a parametric model is developed based on the dual cost function. The proposed model captures both components of technical change, properly accounts for environmental effects, and also accommodates the presence of capacity utilization and scale biases. The empirical application of the model is to a sample of Cretan olive-oil producers, and the results show that output-enhancing technical change is more important than damage-preventing technical change in explaining observed total factor productivity (TFP) changes. The second largest source of TFP growth is due to the scale effect. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Robert Chambers & Giannis Karagiannis & Vangelis Tzouvelekas, 2014. "Productivity accounting for separable technologies," Journal of Productivity Analysis, Springer, vol. 41(1), pages 41-50, February.
    • Handle: RePEc:kap:jproda:v:41:y:2014:i:1:p:41-50
    DOI: 10.1007/s11123-013-0367-6
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    References listed on IDEAS

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    Cited by:

    1. Chambers, Robert G. & Tzouvelekas, Vangelis, 2013. "Estimating population dynamics without population data," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 510-522.

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    More about this item

    Keywords

    Separable technologies; Damage control; TFP growth; Olive-oil; D24; O13; Q12;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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