Estimation of firm-specific technological bias, technical change and total factor productivity growth

A dual approach

Subal C. Kumbhakar, Shinichiro Nakamura, Almas Heshmati

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

This paper deals with modeling firm-specific technical change (TC), and technological biases (inputs and scale) in estimating total factor productivity (TFP) growth. Several dual parametric econometric models are used for this purpose. We examine robustness of TFP growth and TC among competing models. These models include the traditional time trend (TT) model and the general index (GI) model. The TT and the GI models are generalized to accommodate firm-specific TC and technological bias (in inputs and output). Both nested and non-nested tests are used to select the appropriate models. Firm-level panel data from the Japanese chemical industry during 1968- 1987 is used as an application.

Original languageEnglish
Pages (from-to)162-173
Number of pages12
JournalEconometric Reviews
Volume19
Issue number4
DOIs
Publication statusPublished - 2000 Jan 1

Fingerprint

Technical change
Total factor productivity growth
Time trends
Index model
Econometric models
Panel data
Non-nested tests
Chemical industry
Modeling
Robustness

Keywords

  • Cost function
  • General index
  • Returns to scale
  • Time trend

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Estimation of firm-specific technological bias, technical change and total factor productivity growth : A dual approach. / Kumbhakar, Subal C.; Nakamura, Shinichiro; Heshmati, Almas.

In: Econometric Reviews, Vol. 19, No. 4, 01.01.2000, p. 162-173.

Research output: Contribution to journalArticle

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