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Nonparametric Estimates of the Components of Productivity and Profitability Change in U.S. Agriculture

  • Christopher J. O’DonnellEmail author
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 238)

Abstract

Recent theoretical advances in total factor productivity (TFP) measurement mean that TFP indexes can now be exhaustively decomposed into unambiguous measures of technical change and efficiency change. To date, all applications of this new methodology have involved decomposing indexes that have poor theoretical properties. This article shows how the methodology can be used to decompose a new TFP index that satisfies all economically-relevant axioms from index theory. The application is to state-level data from 1960 to 2004. In most states, the main drivers of agricultural TFP change are found to have been technical change and scale and mix efficiency change.

Keywords

Data envelopment analysis Environmental change Lowe index Mix efficiency Scale efficiency Technical efficiency Total factor productivity 

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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.The University of Queensland, Centre for Efficiency and Productivity AnalysisBrisbaneAustralia

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