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Journal ArticleDOI

Decomposition of Technological Change and Factor Bias in Indian Power Sector: An Unbalanced Panel Data Approach

01 Mar 1997-Journal of Productivity Analysis (Kluwer Academic Publishers)-Vol. 8, Iss: 1, pp 35-52
Abstract: Technological change and factor bias in the Indian power sector are analyzed using a translog cost function. Various components of technological progress and factor bias are identified and estimated, using a 21 year unbalanced panel data of Indian states and union territories. Heterogeneity across states is incorporated in the model using a variance component model. Appropriate corrections are made for unbalanced panel data. Empirical results show that the annual average rate of technological progress has been 2.4% for the country as a whole. Accumulation of knowledge and increasing scale are found to be the major factors contributing to technological progress. In contrast, the effects of factor price changes and fixed capital accumulation on technological progress have been unfavorable. Pure factor bias measure indicate saving in the use of fuel and labor, and increased use of materials. Tests are performed to check the curvature properties of the underlying technology.
Topics: Technological change (57%), Panel data (54%), Factor price (51%)
Citations
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Journal ArticleDOI
01 May 2003-Applied Economics
Abstract: In deregulated transport markets, a firm's ownership status and management system represent an important issue. Property right theory suggests that productivity and performance are higher in the private than in the public sector. In Switzerland, providers of bus transportation are traditionally corporations, though a large part of their equity shares are still held by the public sector (federal government, cantons, municipalities). This paper examines the potential impact of ownership on the cost of bus service provision for a sample of private, public and mixed bus companies in Switzerland. The estimation of a translog cost model has been considered for 34 bus transit companies observed over 5 years (1991–1995). The results only partially confirm that if the private sector holds shares in the company's capital, efficiency is enhanced. In addition, measures of economies of scale and density are derived and discussed within the actual public transport policy.

126 citations


2


Journal ArticleDOI
Abstract: In this paper we estimate a variable cost function to analyze cost economies and technical change in the English water only sector over the 1995–2005 period. We jointly model the impact on costs of output, customer numbers and area size which allows us to consider both the vertical and horizontal (spatial) dimensions of water utilities' operations. Estimates suggest the existence of unexploited economies of output and customer density and small scale economies which appear to be increasing with population density. These findings suggest that moderate cost savings from prudent mergers could be expected; in particular, benefits of merging water utilities might be higher in more densely populated urban areas. Finally, technical change is found to be increasing over the sample period.

87 citations


01 Jan 2012-
TL;DR: Data Envelopment Analysis (DEA) is an increasingly popular management tool and is commonly used to evaluate the efficiency of a number of producers.
Abstract: Data Envelopment Analysis (DEA) is an increasingly popular management tool. DEA is commonly used to evaluate the efficiency of a number of producers. A typical statistical approach is characterized as a central tendency approach and it evaluates producers relative to an average producer. In contrast, DEA compares each producer with only the "best" producers. By the way, in the DEA literature, a producer is usually referred to as a decision making unit or DMU. DEA is not always the right tool for a problem but is appropriate in certain cases.

54 citations


Cites background from "Decomposition of Technological Chan..."

  • ...Bhattacharyya, Anjana (0,0,0,1,0,0,0) [410]...

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  • ...TFP [3011] TFP measurement and decomposition [1590] time series analysis [1431] time trade-off [1836] time-varying efficiency parameters [2559] time-varying technical efficiency [839] time-varying technical inefficiency [843] tool [1893] TOPSIS [2144] total factor productivity [579] [1447] [1481] [1598] [1612] [3162] total factor productivity (TFP) [1700] [2612] trade liberalization [1260] trade-offs [2370] transition [2218] transitional economies [2217] transitivity [241] translation [78] [2163] translation invariance [1837] translog [579] translog cost function [1715] [2612] translog estimation [307] translog flexible functions [643] transport [715] transportation - rail [30] transportation - road [2591] trust companies [492] Tunisia [1259] Turkey [2855] two-stage models [692] types of inefficiency [797] unbalanced panel [3011] unbalanced panel data [410] [1259] uncertainty [2238] undesirable outputs [2056] [2472] unionization [539] United States [165] units invariance [1837] units invariant [2978] units-invariance [733] universities [355] [1257] university library [670] university perfomance [227] unobserved decision making units [2862] urban transit [871] urban transport [1226] utilities [2270] utility indirect input distance function [1087] utility regulation [2151] value chain networks [2831] value efficiency [1394] [1396] value efficiency analysis [1656] value function [1394] [1396] [1400] [1401] [1403] [1404] [1656] [1657] value functions [908] value judgements [107] [205] [2862] value-added [517] variable coefficients [1222] variable returns to scale [1787] variable sample size [2744] [2745] variation of fit [2315] vector optimization [2743] vendor negotiations [3083] vendor selection [3085] vertical integration [590] virtual multipliers [2058] visualization [1015] voting [750] [1317] water and sewerage industry [2151] water industry [2882] weak axiom of cost minimization [2310] weak disposability [2056] weight restriction [365] [1790] [2980] weight restrictions [196] [2230] [2232] [2236] [2239] [2240] [2815] [2844] weight restrictions efficiency [2185] weightings [983] weight-restricted models [1692] weights restrictions [107] [2862] [3115] wide-area computer communication systems [1247] window analysis [226] [1423] workflow [2428] X-efficiency [850] X-inefficiencies [67] yardstick regulation [1435] zero and negative data [2163]...

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    [...]


Journal ArticleDOI
22 Jan 2009-Applied Economics
Abstract: This article examines the potential impact of ownership on the cost of bus service provision for a sample of 65 private and 12 public companies providing local public transit (LPT) in Piedmont (Italy) from 1998 to 2002. A translog cost frontier is estimated using the model in Battese and Coelli (1995) where inefficiency scores are allowed to vary across firms and over time. A public ownership dummy is included in the inefficiency model and it is always positive and significant. Density and scale economies and cost inefficiencies are then computed. Private companies seem to experience higher density and scale economies than public ones. Cost inefficiencies appear higher in the public sample.

43 citations


Journal ArticleDOI
Abstract: We investigate the relationship between productivity, size and age of large Australian firms employing more than 100 employees or holding assets in excess of $100 million. In addition, we also investigate the extent of productivity persistence among these firms by looking at transition matrices of productivity distribution and productivity-rank mobility. The empirical study is based on the IBISWorld database used to estimate translog cost function to measure (a residual based) productivity. We find evidence, though somewhat weak, that larger and older firms are on average less productive. Further, we find strong evidence for a high degree of inertia in terms of productivity ranking within an industry.

27 citations


11


References
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Abstract: 1. Introduction 2. Homogeneity test for linear regression models (analysis of covariance) 3. Simple regression with variable intercepts 4. Dynamic models with variable intercepts 5. Simultaneous-equations models 6. Variable-coefficient models 7. Discrete data 8. Truncated and censored data 9. Cross-sectional dependent panel data 10. Dynamic system 11. Incomplete panel data 12. Miscellaneous topics 13. A summary view.

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Abstract: This classic text has proven its worth in university classrooms and as a tool kit in research--selling over 40,000 copies in the United States and abroad in its first edition alone. Users have included undergraduate and graduate students of economics and business, and students and researchers in political science, sociology, and other fields where regression models and their extensions are relevant. The book has also served as a handy reference in the "real world" for people who need a clear and accurate explanation of techniques that are used in empirical research.Throughout the book the emphasis is on simplification whenever possible, assuming the readers know college algebra and basic calculus. Jan Kmenta explains all methods within the simplest framework, and generalizations are presented as logical extensions of simple cases. And while a relatively high degree of rigor is preserved, every conflict between rigor and clarity is resolved in favor of the latter. Apart from its clear exposition, the book's strength lies in emphasizing the basic ideas rather than just presenting formulas to learn and rules to apply.The book consists of two parts, which could be considered jointly or separately. Part one covers the basic elements of the theory of statistics and provides readers with a good understanding of the process of scientific generalization from incomplete information. Part two contains a thorough exposition of all basic econometric methods and includes some of the more recent developments in several areas.As a textbook, "Elements of Econometrics" is intended for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in econometrics. Researchers in the social sciences will find it an invaluable reference tool.A solutions manual is also available for teachers who adopt the text for coursework.Jan Kmenta is Professor Emeritus of Economics and Statistics, University of Michigan.

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Posted Content
Abstract: Empirically estimated flexible functional forms frequently fail to satisfy the appropriate theoretical curvature conditions. Lau and Gallant and Golub have worked out methods for imposing the appropriate curvature conditions locally, but those local techniques frequently fail to yield satisfactory results. We develop two methods for imposing curvature conditions globally in the context of cost function estimation. The first method adopts Lau's technique to a generalization of a functional form first proposed by McFadden. Using this Generalized McFadden functional form, it turns out that imposing the appropriate curvature conditions at one data point imposes the conditions globally. The second method adopts a technique used by McFadden and Barnett, which is based on the fact that a non-negative sum of concave functions will be concave. Our various suggested techniques are illustrated using the U.S. Manufacturing data utilized by Berndt and Khaled

996 citations


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