, Volume 37, Issue 3, pp 231-232,
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Date: 14 Dec 2011

Imputing output prices for non-market production units: a comment

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Introduction

This note is a comment on Diewert (2011b), which is about productivity measurement for non-market production units. Diewert considered specifically the imputation of output prices when price and quantity data on output-specific inputs are available.

In this note I show that the two approaches offered by Diewert, the simple one in Sect. 2 and the seemingly more general one in the Appendix, are basically equivalent.

Two approaches

Consider a production unit producing \( y_{1}^{t} , \ldots ,y_{M}^{t} \) quantities of outputs (in the article called procedures) during period t. Each output m requires inputs from a set \( A_{m} \), the vector of quantities during period t being \( x_{m}^{t} \) (m = 1,…, M). The corresponding vectors of input prices are \( w_{m}^{t} \) (m = 1,…, M). It is assumed that output quantities as well as output-specific input quantities and prices can be observed. Note that this is a rather strong assumption because usually only aggregate input quantities an ...

This note is a comment on Diewert (2011b).