Decomposing regional productivity growth using an aggregate production frontier

Álvarez, Antonio

doi:10.1007/s00168-006-0109-z

Cited by 11 publications

(9 citation statements)

References 12 publications

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“…Contemporaneous partisan alignment effects hold with standard errors corrected by spatial autocorrelation. Like Álvarez () and Aray (), the more specialized the region, the higher the growth of TFP . The estimator is significant at the 1 per cent level.…”

Section: Estimation Issuesmentioning

confidence: 96%

More on decentralization and economic growth

Aray

2018

Papers in Regional Science

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This article casts new evidence on the e¤ects of decentralization on economic growth. Based on the literature on the e¤ects of institutions on the economy, such e¤ects are assumed to accrue through total factor productivity (TFP ). We try to overcome the recent criticisms of the empirical approaches regarding the proper measures of variables capturing decentralization. Thus, …ve variables to capture decentralization are proposed. Panel data for the regions of Spain over the 1986-2010 period are used. The results show that the …nancial autonomy and the share of regional investment in public infrastructure seem to positively a¤ect the economic growth of Spanish regions. However, a negative e¤ect is found for the number of responsibilities transferred to the regions. Moreover, the empirical evidence could be suggesting that the Spanish state might be near or surrounding the optimal level of decentralization. Results are fairly robust to di¤erent estimation methods and measures of TFP, regardless of the assumption of constant returns to scale.

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Section: Estimation Issuesmentioning

confidence: 96%

More on decentralization and economic growth

Aray

2018

Papers in Regional Science

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“…Kumbhakar and Wang (2005) employ a stochastic frontier framework to decompose the Malmquist index for 82 countries. Similarly, Alvarez (2007) decomposes regional productivity growth for Spanish regions. The study contributes to the productivity literature by combining fixed effects and stochastic frontiers approach, enabling the researchers to start a discussion on whether to use average or frontier functions to estimate regional TFP.…”

Section: Measuring Productivitymentioning

confidence: 99%

Measurement and Determinants of Multi‐factor Productivity: A Survey of Literature

Ahmed

Bhatti

2020

Journal of Economic Surveys

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This paper surveys and synthesizes fast‐growing literature on the measurement and determinants of multi‐factor productivity (MFP). We identify three strands of the literature to measure MFP: the first is growth accounting, which decomposes observed economic growth into the contribution of factor inputs and technological change, called the Solow Residual; the second is index number methods, accompanied by frontier techniques; the third is growth regressions and econometric methods used to estimate productivity across countries and regions. We keep our focus on assessing the major strengths and weaknesses of commonly used methods for MFP measurement and categorize existing literature on the determinants of MFP growth into macroeconomic and institutional factors. We attempt to provide a reassessment and thematic survey of literature on the drivers of aggregate productivity, enabling policymakers to formulate effective economic policy.

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“…6 That is, for econometricians, not for statisticians. Dominguez-Molina et al (2003, 2007 show how instead of a composed error structure a singular error structure in the form of a skew-normal distribution function can be used. 7 For practical purposes, such a production function is in its simplest form denoted as:…”

Section: Stochastic Production Frontiersmentioning

confidence: 99%

“…There is already a sizeable literature dealing with benchmarking regions using regional technical efficiencies modelled by a stochastic frontier approach (see, amongst others, Driffield and Munday 2001;Brock 1999;Puig-Junoy 2001;Puig-Junoy and Pinilla 2008;Alvarez 2007;Otsuka 2017). 2 This literature usually deals with the relative (sectoral) performance of regions, and this is the approach this paper takes as well.…”

Section: Introductionmentioning

confidence: 99%

On the estimation of spatial stochastic frontier models: an alternative skew-normal approach

Graaff

2019

Ann Reg Sci

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This paper deals with an alternative approach to combine spatial dependence and stochastic frontier models using a large statistical literature on skew-normal distribution functions. I show how to combine a spatial dependence structure with a stochastic frontier model, that is, (1) straightforward to estimate, (2) able to combine spatial dependence and a technical efficiency term in a single error term, and (3) produce consistent estimates. With smaller sample sizes estimation of the parameter, governing technical efficiencies becomes imprecise. The consistency of parameter estimation is shown using simulations, and I provide an empirical application to estimate spatially correlated technical efficiencies within an European regional production function context. JEL Classification R11 • R15

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Decomposing regional productivity growth using an aggregate production frontier

Abstract: D24, O18, R11,

Cited by 11 publications

References 12 publications

More on decentralization and economic growth

More on decentralization and economic growth

Measurement and Determinants of Multi‐factor Productivity: A Survey of Literature

On the estimation of spatial stochastic frontier models: an alternative skew-normal approach

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