Measuring productivity growth under factor non-substitution: An application to US steam-electric power generation utilities

作者：Genius Margarita; Stefanou Spiro E^*; Tzouvelekas Vangelis

来源：European Journal of Operational Research, 2012, 220(3): 844-852.

DOI：10.1016/j.ejor.2012.02.023

• Productivity and competitiveness
• OR in energy
• Productivity growth
• Technical efficiency
• Factor non-substitution
• Leontief-type technologies

A theoretical framework is developed for decomposing partial factor productivity and measuring technical inefficiency when the underlying technology is characterized by factor non-substitution. With Farrell%26apos;s (1957) radial index of technical inefficiency being inappropriate in this case, Russell non-radial indices are adapted to measure technical inefficiency in a Leontief-type model. A system of factor demand equations with a regime specific technical inefficiency term is proposed and estimated allowing for dependence across inputs using a copula approach. Then the paper presents a complete decomposition of partial factor productivity changes using a dataset of US steam-power electric generation utilities.

• 出版日期2012-8-1