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Industrial Price, Quantity, and Productivity IndicesThe Micro-Economic T
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Industrial Price, Quantity, and Productivity Indices978-1-4757-5454-4
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Introduction,-input/singleoutput firm. This is of course a highly artificial case, but extremely convenient to illustrate the main concepts. Thus, we consider a single firm through two time periods of equal length: a base period (. = 0) and a comparison period (. = 1). During the base period the firm uses .. qua
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Primal Representations of the Technology,istance functions, the technical efficiency measures, the concepts of homotheticity, global constant returns to scale, and Hicks neutrality. Finally, we will discuss measures of local scale elasticity, and provide an interpretation of local constant returns to scale.
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The Output Side of the Firm: Indirect Functions and Indices, given. The theory of the cost-constrained firm was developed by Färe and Grosskopf (1994). We use the indirect output distance function and the indirect revenue function as representations of the technology. These representations, as well as the efficiency measures based on them, will be discussed
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Profit Function Based Indices and Indicators,entation of the technology is provided by the profit function. Based on this function we can define a simultaneous input and output price index, and an index of technical change. Section 7.1 then concludes with deriving some nonparametric approximations for these indices. In section 7.2 we relax som
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An Application, as belonging to the rubber-processing industry, over the period 1978–1992. The basic micro-data come from the yearly production surveys. The firms vary considerably in size, the ratio of the largest to the smallest (measured in terms of the value of output) on average being 70 to 1. Averaged over t