Technology Invention and Diffusion in Residential Energy Consumption. A Stochastic Frontier Approach

Palma, A.

doi:10.2139/ssrn.2718094

Cited by 1 publication

(2 citation statements)

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“…As stressed above, the stochastic frontier approach is based on a specific stochastic frontier production function, which is essentially derived from a deterministic production frontier function (Hampf, 2019; Marin and Palma, 2017). According to the established measurement index system and previous studies (Fan and Yu, 2016; Ikhsan, 2007; Keng and Li, 2010; Kumbhakar, 2000), this deterministic function can be simplified as:where ffalse(⋅false) is the present production frontier; italicYt expresses the output variable in the t -th period, t=1, 2, …, T; italicLt and italicKt denote labor input and capital input in period t , respectively; β is a set of parameters to be estimated in ffalse(⋅false); italicUitalict presents the output-oriented technical inefficiency, in this case, η captures the time-varying effect of technical efficiency by the change of technical inefficiency.…”

Section: Methodology and Datamentioning

confidence: 99%

Section: Stochastic Frontier Approachmentioning

confidence: 99%

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Total factor productivity growth and its decomposition in the Chinese construction industry since China's accession to the World Trade Organization

Wang

Zheng

et al. 2021

ECAM

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PurposeSince China's accession of the World Trade Organization (WTO), its construction industry has attained unprecedented growth. However, for the sources of this enormous growth, a controversy regarding the total factor productivity growth (TFPG) still remains in production practice and extant studies. In view of this, the purpose of this paper is to measure TFPG and to explore its sources in the industry post-WTO accession.Design/methodology/approachThis study presents an innovative source analysis of TFPG. Stochastic frontier approach is adopted to measure TFPG and to explore its sources by decomposing TFPG into technical progress (TP), technical efficiency change (TEC), allocative efficiency change (AEC) and scale efficiency change (SEC). Although China joined WTO in 2001, to provide an effective baseline, the study period is from 2000 to 2017.FindingsThe empirical results reveal that TFPG presented an overall downward evolutionary trend, but it still maintained a high growth post-WTO accession. From the perspective of decomposition, TP was the main source of TFPG. Furthermore, as a neglected source, interaction effects among TP, TEC, AEC and SEC have been demonstrated to have a significant influence on the cumulative TFPG.Practical implicationsTo make the results be reliable, the authors discuss the empirical findings mainly by revealing the reasons behind the evolutions of TFPG and its sources. Based on these revealed reasons, government and policy makers can further refine and summarize some more detailed and targeted policy implications to improve TFPG.Originality/valueBy providing many empirical evidences to solve the aforesaid TFPG controversy, this paper, therefore, enriches the body of knowledge on growth theories, especially at the level of industrial economics.

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