IDEAS home Printed from https://ideas.repec.org/p/ags/iatr13/152364.html
   My bibliography  Save this paper

Measuring productivity change using alternative input–output concepts: A farm level application using FADN data

Author

Listed:
  • Yann, de Mey
  • Mark, Vancauteren
  • Frankwin, van Winsen
  • Erwin, Wauters
  • Ludwig, Lauwers
  • Steven, Van Passel

Abstract

Multifactor productivity growth measures can be constructed using different input–output concepts. We estimate three distinct productivity growth measures respectively based on gross output, value added, and cash flow and discuss their economic interpretation. By making use of an index theory based decomposition model, we deviate from making neo-classical assumptions and acknowledge the role of profits. Applying the productivity growth index framework to farm level Flemish FADN data (1990–2003), we show that the estimated percentage growth of productivity is sensitive to the input–output concept under consideration. The empirical practicability of these complementary productivity growth measures depends on the purpose of measurement.

Suggested Citation

  • Yann, de Mey & Mark, Vancauteren & Frankwin, van Winsen & Erwin, Wauters & Ludwig, Lauwers & Steven, Van Passel, 2013. "Measuring productivity change using alternative input–output concepts: A farm level application using FADN data," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152364, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatr13:152364
    DOI: 10.22004/ag.econ.152364
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/152364/files/B.3.3_paper_MFP_Agriculture%20v4_Seville2013.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.152364?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bert M. Balk, 2010. "An Assumption‐Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 224-256, June.
    2. Jean‐Christophe Bureau & Rolf Färe & Shawna Grosskopf, 1995. "A Comparison Of Three Nonparametric Measures Of Productivity Growth In European And United States Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 309-326, September.
    3. Bernhard Brümmer & Thomas Glauben & Geert Thijssen, 2002. "Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in Three European Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 628-644.
    4. José E. Bervejillo & Julian M. Alston & Kabir P. Tumber, 2012. "The benefits from public agricultural research in Uruguay," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 475-497, October.
    5. Timothy J. Coelli & D.S. Prasada Rao & Christopher J. O’Donnell & George E. Battese, 2005. "An Introduction to Efficiency and Productivity Analysis," Springer Books, Springer, edition 0, number 978-0-387-25895-9, October.
    6. Coelli, Tim J. & Perelman, Sergio & Van Lierde, Dirk, 2006. "CAP Reforms and Total Factor Productivity Growth in Belgian Agriculture: A Malmquist Index Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25472, International Association of Agricultural Economists.
    7. V. Ball & Jean-Christophe Bureau & Jean-Pierre Butault & Richard Nehring, 2001. "Levels of Farm Sector Productivity: An International Comparison," Journal of Productivity Analysis, Springer, vol. 15(1), pages 5-29, January.
    8. Antonio Alvarez & Julio del Corral, 2010. "Identifying different technologies using a latent class model: extensive versus intensive dairy farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 37(2), pages 231-250, June.
    9. Catherine Benjamin & Euan Phimister, 2002. "Does Capital Market Structure Affect Farm Investment? A Comparison using French and British Farm-Level Panel Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1115-1129.
    10. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    11. V. Eldon Ball & Frank M. Gollop & Alison Kelly-Hawke & Gregory P. Swinand, 1999. "Patterns of State Productivity Growth in the U.S. Farm Sector: Linking State and Aggregate Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 164-179.
    12. V. Eldon Ball & Jean‐Pierre Butault & Carlos San Juan & Ricardo Mora, 2010. "Productivity and international competitiveness of agriculture in the European Union and the United States," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 611-627, November.
    13. V. Eldon Ball & Jean-Christophe Bureau & Richard Nehring & Agapi Somwaru, 1997. "Agricultural Productivity Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1045-1063.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. de Mey, Yann & Vancauteren, Mark & Van Passel, Steven, 2011. "Input-output Concepts, Profits and Productivity Growth: An Application Using Flemish Farm Level Data," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114448, European Association of Agricultural Economists.
    2. Lajos Baráth & Imre Fertő, 2017. "Productivity and Convergence in European Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 228-248, February.
    3. Marzec, Jerzy & Pisulewski, Andrzej, 2019. "The Measurement of Time Varying Technical Efficiency and Productivity Change in Polish Crop Farms," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(1), March.
    4. Fekete-Farkas, Maria & Szucs, Istvan & Varga, Tibor, 2012. "Technological progress and efficiency change In Hungarian Agriculture," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126120, International Association of Agricultural Economists.
    5. Lukas Cechura & Aaron Grau & Heinrich Hockmann & Inna Levkovych & Zdenka Kroupova, 2017. "Catching Up or Falling Behind in European Agriculture: The Case of Milk Production," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 206-227, February.
    6. Kellermann, Magnus & Salhofer, Klaus, 2011. "Comparing productivity growth in conventional and grassland dairy farms," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114763, European Association of Agricultural Economists.
    7. Jones, Keithly G. & Arnade, Carlos Anthony, 2003. "A Joint Livestock-Crop Multi-Factor Relative Productivity Approach," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35157, Southern Agricultural Economics Association.
    8. Jerzy Marzec & Andrzej Pisulewski, 2020. "Pomiar efektywności zróżnicowanych technologicznie gospodarstw rolnych w Unii Europejskiej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 111-137.
    9. Areal, Francisco J. & Tiffin, Richard & Balcombe, Kelvin G., 2012. "Provision of environmental output within a multi-output distance function approach," Ecological Economics, Elsevier, vol. 78(C), pages 47-54.
    10. Eldon Ball & David Schimmelpfennig & Sun Ling Wang, 2013. "Is U.S. Agricultural Productivity Growth Slowing?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(3), pages 435-450.
    11. von Hobe, Cord-Friedrich & Michels, Marius & Musshoff, Oliver, 2021. "Technical efficiency and productivity change in German large-scale arable farming," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(01), January.
    12. Baráth, Lajos & Ferto, Imre, 2014. "Agricultural Productivity in the EU: A TFP Comparison between the Old (EU-15) and New (EU-10) EU Member States," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 168923, European Association of Agricultural Economists.
    13. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    14. Sheng, Yu & Xu, Xinpeng, 2019. "The productivity impact of climate change: Evidence from Australia's Millennium drought," Economic Modelling, Elsevier, vol. 76(C), pages 182-191.
    15. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    16. Zuniga Gonzalez, Carlos Alberto, 2012. "Total factor productivity and Bio Economy effects," MPRA Paper 49355, University Library of Munich, Germany, revised 13 Nov 2012.
    17. Zoltan Bakucs & Imre Fertő & József Fogarasi & Laure Latruffe & Yann Desjeux & Eduard Matveev & Sonia Marongiu & Mark Dolman & Rafat Soboh, 2011. "EU farms’ technical efficiency and productivity change in 1990 – 2006 [Efficacité technique et changement de productivité des exploitations agricoles européennes 1990-2006]," Post-Print hal-02808334, HAL.
    18. Lajos Baráth & Imre Fertő & Heinrich Hockmann, 2020. "Technological Differences, Theoretical Consistency, and Technical Efficiency: The Case of Hungarian Crop-Producing Farms," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    19. C. J. O’Donnell, 2021. "Estimating the Effects of Weather and Climate Change on Agricultural Productivity," CEPA Working Papers Series WP032021, School of Economics, University of Queensland, Australia.
    20. Napasintuwong, Orachos & Emerson, Robert D., 2003. "Farm Mechanization And The Farm Labor Market: A Socioeconomic Model Of Induced Innovation," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35117, Southern Agricultural Economics Association.

    More about this item

    Keywords

    Production Economics; Productivity Analysis; Research Methods/ Statistical Methods;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iatr13:152364. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iatrcea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.