This paper extends the primal decomposition of total factor productivity (TFP) changes to the case of non-neutral production frontiers. Output growth is decomposed into input growth (size effect), changes in technical efficiency, technical change, and the effect of returns to scale. Within the...

This paper proposes an alternative approach for separating technical change from time-varying technical inefficiency. The approach uses the general index, developed by Baltagi and Griffin (1988), to model technical change along the production function, and a quadratic function of time trend, as...

This paper derives sufficient conditions (in terms of supply and demand elasticities) for producers to gain under different supply shifts when supply and demand are specified to be linear functions and supply is inelastic. It is shown that regardless of the type of supply shift, producers lose...

This paper shows that the compatibility between efficiency measures and the aggregation procedure is not enough to resolve the Fox paradox when different inputs are employed in each activity. We explicitly illustrate this point by considering the additive aggregation of cost efficiency...

We develop a tractable theoretical framework for analyzing the effect of advertising efficiency and spillovers on productivity growth in advertising. Maintaining the separability assumption between sales and production technology, the proposed methodology relies on sales cost function...

Using the Lichtenberg-Zilberman-Fox-Weersink damage specification, we develop a short-run, supply-response framework based on rational producer behavior in the presence of damage agents. We show how representation can be used to measure and decompose the economic damage associated with the...

In this paper we generalize the concept of scale elasticity to accommodate changes in any direction in the input–output space and not only in the radial input and output directions as was done so far with the conventional scale elasticity measure. Our departure point is that we view the scale...