SFA 5. TFP change (productivity growth) in Stochastic frontier analysis (SFA)
Автор: Sholih Nugroho Hadi [Sholih]
Загружено: 2025-04-14
Просмотров: 61
In a single input and single output case, productivity change is simply the difference in the rates of changes in y and x ( and ), that is, , where a “dot” over a variable indicates its rate of change.
Productivity change, when there are multiple inputs, is measured by, what is popularly known as, TFP change
The measurement of total factor productivity (TFP) growth and its decomposition has been the subject of investigations in many empirical studies on industrial productivity
The various approaches used in the literature have been classified by into: parametric estimation of production and cost functions, nonparametric indices, exact index numbers, and nonparametric methods using linear programming.
In the context of SFA, Total Factor Productivity (TFP) change over time is not observed directly but inferred from the changes in output that cannot be explained by changes in input use.
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