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Methodologies for Comparisons of Agricultural Output, Input, and Productivity: A Review and Synthesis

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  • Capalbo, Susan
  • Denny, Michael
  • Hoque, Anwarul
  • Overton, C. Edward

Abstract

The paper presents a review of the methodological state-of-the-art in interspatial and intertemporal productivity measurement. An overview of productivity and efficiency concepts precedes a technical discussion of the two approaches currently existing in evaluating bilateral and multilateral productivity. The accounting or nonparametric approach, which relies on index number methods, provides measures of relative efficiency based on prices and quantities of outputs and inputs. The selection of a particular index number formula for multilateral comparisons of productivity growth should satisfy a priori axioms. In contrast, if sufficient data are available, the parametric or statistical approach can be used to estimate the production technology and to obtain more diverse comparisons than those from accounting procedures. Both approaches depend on developing comparable data sets, while data requirements are dictated by the amount of disaggregation desired.

Suggested Citation

  • Capalbo, Susan & Denny, Michael & Hoque, Anwarul & Overton, C. Edward, 1991. "Methodologies for Comparisons of Agricultural Output, Input, and Productivity: A Review and Synthesis," Staff Reports 278532, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278532
    DOI: 10.22004/ag.econ.278532
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    References listed on IDEAS

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    1. Fisher, Franklin M. & Shell, Karl, 1972. "The Economic Theory of Price Indices," Elsevier Monographs, Elsevier, edition 1, number 9780122577505 edited by Shell, Karl.
    2. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    3. Kravis, Irving B, 1984. "Comparative Studies of National Incomes and Prices," Journal of Economic Literature, American Economic Association, vol. 22(1), pages 1-39, March.
    4. László Drechsler, 1973. "Weighting Of Index Numbers In Multilateral International Comparisons," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 19(1), pages 17-34, March.
    5. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    6. Susan M. Capalbo & Michael Denny, 1985. "Testing Long-Run Productivity Models for the Canadian and U.S. Agricultural Sectors," NBER Working Papers 1764, National Bureau of Economic Research, Inc.
    7. Susan M. Capalbo & Michael G. S. Denny, 1986. "Testing Long-Run Productivity Models for the Canadian and U.S. Agricultural Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 615-625.
    8. Capalbo, Susan Marie, 1988. "Measuring The Components Of Aggregate Productivity Growth In U.S. Agriculture," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-10, July.
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    Cited by:

    1. Arnade, Carlos Anthony, 1992. "Productivity and Technical Change in Brazilian Agriculture," Technical Bulletins 157033, United States Department of Agriculture, Economic Research Service.
    2. Arnade, Carlos A., 1992. "Productivity of Brazilian Agriculture: Measurement and Uses," Staff Reports 278673, United States Department of Agriculture, Economic Research Service.
    3. Trueblood, Michael A., 1994. "An Annotated Bibliography Of Selected Productivity Literature," Staff Papers 13580, University of Minnesota, Department of Applied Economics.
    4. Trueblood, Michael A. & Ruttan, Vernon W., 1992. "A Comparison Of Multifactor Productivity Calculations Of The U.S. Agricultural Sector," Staff Papers 14165, University of Minnesota, Department of Applied Economics.

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