Abstract
The main contribution of this paper is the implementation of a new model which combines the two parametric approaches most commonly used in the productivity literature: fixed effects and stochastic frontiers. This allows us to discuss whether it is better to use average or frontier functions to estimate regional productivity. The empirical section uses panel data of Spanish regions over the period 1980–1995. Additionally, we calculate and decompose total factor productivity growth for the Spanish regions.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Aaberg Y (1973) Regional productivity differences in Swedish manufacturing. Region Sci Urban Econ 3:131–156
Aigner D, Lovell CAK, Schmidt P (1977) Formulation and estimation of stochastic frontier production function models. J Econom 6:21–37
Bauer P (1990) Decomposing TFP growth in the presence of cost inefficiency, non-constant returns to scale and technological progress. J Product Anal 1:287–301
Beeson P, Husted S (1989) Patterns and determinants of productive efficiency in state manufacturing. J Region Sci 29(1):15–28
Brock GJ (1999) Exploring a regional technical efficiency frontier in the former USSR. Econ Plan 32:23–44
Cordero G, Gayoso A (1996) El comportamiento de las economí as regionales en tres ciclos de la economí a española: Primera explotación de una serie (1980–93) del VAB regional a precios constantes (base 1986) elaborada a partir de la Contabilidad Regional de España. Documento de trabajo; Dirección General de Análisis y Programación Presupuestaria, Ministerio de Economí a y Hacienda, Madrid
De la Fuente A (1998) Fronteras de Producción Eficiente y Convergencia Regional. Revista Española Econ 15(2):265–271
Denny M, Fuss M, Waverman L (1981) The measurement and interpretation of total factor productivity in regulated industries with an application to Canadian telecommunications. In: Cowing T, Stevenson R (eds) Productivity measurement in regulated industries. Academic, New York
Diewert WE (1992) The measurement of productivity. Bull Econ Res 44(3):163–198
Gerking S (1994) Measuring productivity growth in U.S. regions: a survey. Int Region Sci Rev 16:155–186
Greene W (2002) Alternative panel data estimators for stochastic frontier models. Mimeo, Stern School of Business, New York University
Kumbhakar SC, Hjalmarsson L (1993). Technical efficiency and technical progress in Swedish dairy farms. In: Fried H, Lovell CAK, Schmidt SS (eds) The measurement of productive efficiency: techniques and applications. Oxford University Press, New York
Nadiri MI (1970) Some approaches to the theory and measurement of TFP: a survey. J Econ Literat 7(4):1137–1377
Nishimizu M, Page J (1982) Total factor productivity growth, technological progress and technical efficiency change: dimensions of productive change in Yugoslavia, 1965–1978. Econ J 920–936
Puig-Junoy J (2001) Technical inefficiency and public capital in US states. A stochastic frontier approach. J Region Sci 41:75–95
Schmidt P, Sickles R (1984) Production frontiers and panel data. J Bus Econ Statist 2(4):367–374
Solow RM (1957) Technical change and the aggregate production function. Rev Econ Statist 39:312–320