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Decomposition of the cost growth for the US forest product industries

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  • Yung-Lieh Yang
  • Jun-Yen Lee

Abstract

This article investigates sources that lead to the cost growth of eight U.S. forest products industries during the period 1997 to 2005. The cost growth rate decomposes into two components: the cost efficiency change and the cost technical change. Empirical evidences indicate that the cost growth in wood product industries is predominantly from cost technical change. In contrast, cost inefficiency primarily drives the cost growth in the pulp and paper industries.

Suggested Citation

  • Yung-Lieh Yang & Jun-Yen Lee, 2009. "Decomposition of the cost growth for the US forest product industries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(17), pages 1735-1741.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:17:p:1735-1741
    DOI: 10.1080/13504850701604193
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    References listed on IDEAS

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    1. Maniadakis, Nikolaos & Thanassoulis, Emmanuel, 2004. "A cost Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 154(2), pages 396-409, April.
    2. repec:bla:scandj:v:98:y:1996:i:2:p:303-13 is not listed on IDEAS
    3. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
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