Parametric Decomposition of Output Growth Using A Stochastic Input Distance Function |
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| Authors: | Giannis Karagiannis Peter Midmore and Vangelis Tzouvelekas |
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| Affiliation: | Giannis Karagiannis is associate professor, Department of International and European Economic and Political Studies, University of Macedonia, Greece. Peter Midmore is professor, Institute of Rural Studies, The University of Wales, UK. Vangelis Tzouvelekas is assistant professor, Department of Economics, University of Crete, Greece. |
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| Abstract: | This article proposes a tractable approach for analyzing the sources of TFP changes (i.e., technical change, changes in technical and allocative inefficiency, and the scale effect) in a multi-output setting, while retaining the single-equation nature of the econometric procedure used to estimate the parameters of the underlying technology. The proposed approach relies on Bauer's cost function-based decomposition of TFP changes and the duality between input distance and cost functions. The empirical results are based on a sample of 121 UK livestock farms observed over the period 1983–92 and a translog input distance function. |
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| Keywords: | cost and input distance functions decomposition of TFP UK livestock |
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