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Journal ArticleDOI

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

TL;DR: In this article, the authors analyzed technological change and factor bias in the Indian power sector using a translog cost function and identified the major factors contributing to technological progress, including accumulation of knowledge and increasing scale.
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.
Citations
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Journal ArticleDOI
TL;DR: In this article, the authors analyse the rate and the impacts of technical change in the Swedish pulp and paper industry over the time period 1974-1994 and find evidence of non-neutral technical change.

26 citations

Journal ArticleDOI
TL;DR: It is shown analytically that, when the spatial aspects underlying transport production are taken into account, the seemingly reasonable conditions imposed on the aggregate output descriptions and the network variable conceal implicit output expansions that are not uniquely defined.
Abstract: It is customary to analyze transport industry structure using two indices: (1) economies of density and (2) economies of scale with variable network size. The latter has been defined to analyze the behavior of costs when output and network size expand simultaneously. After reviewing in detail what is intended with the calculation of RTS under this definition, we show analytically that, when the spatial aspects underlying transport production are taken into account, the seemingly reasonable conditions imposed on the aggregate output descriptions and the network variable conceal implicit output expansions that are not uniquely defined: they happen to depend on the specification of variables and on the evaluation point. Furthermore, most of the multiple output expansions analyzed correspond to cases that are hardly instructive. We conclude that this index is inherently ambiguous, hardly contributes to an adequate analysis of transport industry structure, and should be replaced by the calculation of economies of spatial scope (Journal of Economic Literature L91, L11, D40).

23 citations

Journal ArticleDOI
TL;DR: In this article, a non-neutral and non-homothetic translog variable cost function was used to investigate the productivity of the agricultural sector in the Philippines. But, the authors found that the productivity level during the Green Revolution era has not been sustained or paralleled, despite substantial policy changes put in place since 1986.
Abstract: Using recent agricultural data sets, we estimate a non-neutral and non-homothetic translog variable cost function to empirically investigate Philippine agricultural productivity. Overall, the annual average productivity growth rate is 0.51 percent. The highest productivity level is observed during the post-Green Revolution period (1974–1980). Thereafter, productivity growth shows a discernible decline up until the late 1990s. This indicates that productivity level during the Green Revolution era has not been sustained or paralleled, despite substantial policy changes put in place since 1986 to invigorate the agricultural sector. The government should therefore continue to promote technological progress in Philippine agriculture; however, this may require redirection of its present policy by placing more emphasis on productivity-enhancing investments, such as research and development, irrigation and other infrastructure.

16 citations

Journal ArticleDOI
TL;DR: In this paper, the authors analyzed the cost efficiency embedded in these budget plans to evaluate the actual capability of local regulators to adequately orientate firm performance and found that the decentralized planning mechanism applied in Italian water and sewerage industry regulation failed in fulfilling the declared goal.
Abstract: The reformed Italian water and sewerage industry has several distinctive features. It is based on a decentralized structure where local authorities are entitled to define detailed long-term budget plans that claim to provide efficiency incentives to operating suppliers. Unlike previous studies, this paper analyzes the cost efficiency embedded in these budget plans to evaluate the actual capability of local regulators to adequately orientate firm performance. Several panel data cost frontier models were estimated that incorporate diverse specifications for inefficiency and unobserved heterogeneity terms. The results indicate that the decentralized planning mechanism applied in Italian water and sewerage industry regulation failed in fulfilling the declared goal and further highlights that the time-invariant terms are the prevailing source of cost differences, which may conceal a structural component attributable to persistent inefficiency.

16 citations


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

  • ...includes a quadratic form and interactions with outputs and input prices, allowed us identifying and evaluating three separate components of technological change ( Bhattacharyya et al. 1997 )....

    [...]

Journal ArticleDOI
TL;DR: In this paper, the authors analyzed the cost structure of the UK airport industry by estimating a variable cost function for the period 1994-2005 and found that the long run average costs curve is U-shaped: it decreases until passenger tra¢ c reaches approximately …ve millions, it remains ‡at over the range between …ve and fourteen million passengers and afterwards it starts to increase.
Abstract: In this paper we analyze the cost structure of the UK airport industry by estimating a variable cost function for the period 1994–2005. Overall results suggest that the long run average costs curve is U-shaped: it decreases until passenger tra¢ c reaches approximately …ve millions, it remains ‡at over the range between …ve and fourteen million passengers and afterwards it starts to increase. Moreover, our …ndings provide evidence consistent with the existence of some degree of

7 citations

References
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Book
25 Jul 1986
TL;DR: In this paper, the authors propose a homogeneity test for linear regression models (analysis of covariance) and show that linear regression with variable intercepts is more consistent than simple regression with simple intercepts.
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.

6,234 citations

Journal ArticleDOI
TL;DR: The Elements of Econometrics as mentioned in this paper is a textbook for upper-level undergraduate and master's degree courses and may usefully serve as a supplement for traditional Ph.D. courses in economics.
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.

3,838 citations

Journal ArticleDOI
TL;DR: In this paper, a simple test for heteroscedastic disturbances in a linear regression model is developed using the framework of the Lagrangian multiplier test, and the criterion is given as a readily computed function of the OLS residuals.
Abstract: A simple test for heteroscedastic disturbances in a linear regression model is developed using the framework of the Lagrangian multiplier test. For a wide range of heteroscedastic and random coefficient specifications, the criterion is given as a readily computed function of the OLS residuals. Some finite sample evidence is presented to supplement the general asymptotic properties of Lagrangian multiplier tests.

3,629 citations

Book
01 Jun 1985
TL;DR: In this article, the authors proposed a method to improve the quality of the information provided by the user by using the information of the user's interaction with the service provider and the user.
Abstract: Фундаментальный учебник по теории развития сельского хозяйства как отрасли. Рассматривается развитие сектора в историческом масштабе, специфика развития отрасли в развитых и развивающихся странах (с акцентом на развитие в странах с избыточной рабочей силой). В книге представлены следующие темы: аграрная экономика и её роль в общем процессе экономического развития, структурная трансформация, стратегии и модели развития сельского хозяйства и аграрная структура, взаимосвязь сельского хозяйства и промышленности, государственная политика в области сельского хозяйства, макроэкономика и сельское хозяйство, либерализация торговли сельскохозяйственной продукцией.

2,595 citations

Posted Content
TL;DR: In this article, the authors developed two methods for imposing curvature conditions globally in the context of cost function estimation, based on a generalization of a functional form first proposed by McFadden.
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

1,014 citations