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Productivity change in a multisectoral economic system

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  • Mikulas Luptacik
  • Bernhard Mahlberg

Abstract

We estimate productivity growth without recourse to data on factor input shares or prices. In the proposed model, the economy is represented by the Leontief input--output model, which is extended by the constraints of primary inputs. A Luenberger productivity indicator is proposed to estimate productivity change; this is then decomposed in a way that enables us to examine the contributions of individual production factors and individual commodities to productivity change. The results allow for the identification of inputs or outputs that are the drivers of the overall productivity change. Their contributions are then decomposed into efficiency change and technical change components. Using input--output tables of the US economy for the period 1977--2006, we show that technical progress has been the main source of productivity change. Technical progress was mostly driven by capital, whereas low-skilled labour contributed negatively.

Suggested Citation

  • Mikulas Luptacik & Bernhard Mahlberg, 2016. "Productivity change in a multisectoral economic system," Economic Systems Research, Taylor & Francis Journals, vol. 28(3), pages 344-361, September.
    • Handle: RePEc:taf:ecsysr:v:28:y:2016:i:3:p:344-361
    DOI: 10.1080/09535314.2016.1192527
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    Cited by:

    1. Shen, Zhiyang & Boussemart, Jean-Philippe & Leleu, Hervé, 2017. "Aggregate green productivity growth in OECD’s countries," International Journal of Production Economics, Elsevier, vol. 189(C), pages 30-39.
    2. Juan Aparicio & Magdalena Kapelko & Bernhard Mahlberg & Jose L. Sainz-Pardo, 2017. "Measuring input-specific productivity change based on the principle of least action," Journal of Productivity Analysis, Springer, vol. 47(1), pages 17-31, February.
    3. Wang, Yizhong & Jeong, Sujong & Hang, Ye & Wang, Qunwei, 2024. "Multi-sector environmental efficiency and productivity: A general Leontief optimization method," Omega, Elsevier, vol. 126(C).
    4. Mikulas Luptacik & Bernhard Mahlberg, 2018. "Revisiting the Efficiency-Equity Trade-off: A Muli-objective Linear Problem combined with an extended Leontief Input Output Model," Department of Economic Policy Working Paper Series 016, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.

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