Showing papers on "Productivity model published in 1995"

Productivity and Undesirable Outputs: A Directional Distance Function Approach

Abstract: Undesirable outputs are often produced together with desirable outputs. This joint production of good and bad outputs brings about a difficulty for productivity measurement. Here we introduce a directional distance function and use it as a component in a new productivity index. This index, as an empirical example shows, seems to solve the problem caused by the joint production of good and bad outputs.

Productivity and Intermediate Products: A Frontier Approach

Abstract: The purpose of this paper is to introduce a frontier model for productivity measurement that explicitly recognizes that some inputs are produced and consumed within the production technology. Here we differ from Koopmans (1951) by assuming that the intermediate inputs may also be final output. This assumption is in line with current international trade theory, where intermediate inputs are tradable. Our model consists of two production units that are interconnected in a network to form a production technology. The productivity measure employed here is the so-called Malmquist productivity index. This index consists of ratios of distance functions. Here these distance functions are defined on the network technology and they are computed using linear programming techniques.

An Econometric Decomposition of Dairy Output Growth

Abstract: Fixed effects production functions and stochastic production frontiers are estimated and used to decompose dairy farm output growth into technological progress, technical efficiency, and increased input use or the size effect. Unbalanced panel data for ninety-six Vermont dairy farmers for the 1971-84 period are utilized. The results show a 2.5% average annual increase in milk output. About 56% of this growth is attributed to the size effect and the remaining 44% to productivity growth. Technological progress contributed about 94% to total productivity growth, while improvements in technical efficiency accounted for only 6%.

Measuring construction productivity: a practical approach

Abstract: Productivity, especially in the construction industry, has always been very difficult to measure and control. All estimating professionals would agree that the quantity of work to be performed and the cost per hour for labour to perform that work can be established with considerable accuracy. However, it is the identifying and evaluating of the critical factors which influence productivity that provides a challenge. Every error in productivity estimation causes an inverse effect in the actual cost of labour to perform a scope of work.

The change in productivity of Chinese state enterprises, 1983–1987

Abstract: This study estimates the change in productivity of Chinese state enterprises during 1983-1987 using a panel data set of 403 firms. A new approach to productivity measurement is used. Under this approach, the production functions can differ arbitrarily across firms, important given the heterogeneity of the sample. The resulting coefficients estimate the marginal products of each factor as well as overall productivity growth. The results suggest Chinese productivity increased by 4.6 % per year, with about half of this growth due to the rapidly improving education of the labor force.

Calculating Lost Labor Productivity in Construction Claims

Abstract: Labor Productivity Defined. Overtime and Shift Work. Acceleration. The Effect of Change Orders on Productivity. Productivity Losses Related to Weather. Learning Curves. Project Characteristics that Affect Labor. Project Management Impacts on Productivity. Nonwage Labor Cost. Measuring Productivity. Predicting Labor Productivity Losses. Charts, Graphs, and Presentation Productivity Analyses. Appendices. Table of Cases. Index.

Productivity improvement: Efficiency approach vs effectiveness approach

Abstract: Traditionally, raising the level of technology is considered the most effective way to improve productivity. Nevertheless, without the support of sound management systems, the contribution of technology to productivity is limited. In a sample of fifteen machinery firms, this paper calculates three indices for automation technology, production management, and productivity, respectively, to represent their levels of achievement. By using technology and management as the explanatory variables, a piecewise linear productivity frontier is constructed by applying a data envelopment analysis approach. At a given combination of the levels of technology and management, a firm may not be able to achieve the expected maximum productivity due to inefficient utilization of the input factors. One approach, the efficiency approach, for improving productivity which does not require the consumption of extra resources is to efficiently utilize the input factors. Another approach, the effectiveness approach, is to adjust the levels of technology and management toward the best combination to accomplish the highest productivity. Based on the productivity frontier constructed from the surveyed firms, the two approaches for improving productivity are discussed.

The diffusion of new information technologies and productivity growth

Abstract: This paper investigates the effects of the rates of diffusion of the cluster of new information technologies on the growth of output and total factor productivity in the main OCED and industrializing countries in the late eighties. This diffusion approach contrasts the technology production function framework. It predicts that the rates of generation of new technologies are much less effective than the rates of diffusion and the investment efforts in determining the growth of labor productivity especially when capital-intensive technologies which command high levels of investments are considered. The results make it possible to elaborate and assess empirically the notion of key-technologies that provide positive externalities to the rest of the system.

Aggregate Productivity and the Productivity of Aggregates

Abstract: Explanations of procyclical productivity play a key role in a variety of business-cycle models. Most of these models, however, explain this procyclicality within a representative-firm paradigm. This procedure is misleading. We decompose aggregate productivity changes into several terms, each of which has an economic interpretation. However, many of these terms measure composition effects such as reallocations of inputs across productive units. We apply this decomposition to U.S. data by aggregating from roughly the two-digit level to the private economy. We find that the compositional terms are significantly procyclical. Controlling for these terms virtually eliminates the evidence for increasing returns to scale, and implies that input growth is uncorrelated with technology change.

Optimal investment and lot-sizing policies for improved productivity and quality

Abstract: Productivity and quality are an integrated component of the operational strategy of any firm. An increase in productivity implicitly assumes an improvement in quality. The concept of dynamic process quality control and smaller lot-size production have been employed to eliminate defective items, to reduce the cycle time of a product and to improve quality and productivity. We present a mathematical model to establish the relationship between various parameters of productivity and quality. In addition, the proposed model is used to determine the optimal levels of productivity and quality parameters such as batch sizes, and investment in set-up and process control operations. The basic criterion considered for optimizing the level of such parameters is the minimization of total system cost. The proposed model relates productivity and quality to set-up reduction, queueing of batches, batch sizes, and drift rate reduction. We conclude with an example problem to illustrate the behaviour and application...

Errors of measurement and the recent acceleration in manufacturing productivity growth

Abstract: Using detailed (4-digit SIC) industry data for the years 1958–1989, I examine whether the recent acceleration in manufacturing productivity can be attributed to the effects of mismeasurement of the prices of inputs and output, by testing a model linking a set of proxy variables for measurement error to a series of measures of acceleration in total factor productivity (TFP). Alternative TFP estimates are presented in order to determine if the findings are sensitive to the method of TFP calculation. The results are inconsistent with the measurement error hypothesis and invariant to the specification of the TFP equation.

A note on productivity comparisons between air carriers

Abstract: A comparison is provided of seven methods of productivity measurement using a U.S. airline data set. The "decomposition" productivity measures that controlled for varying output characteristics between firms (e.g., network size differences and route density difference) were completely uncorrelated with the "gross" measures that did not. To the extent that output characteristics may vary between firms, the gross measures of productivity should be used with caution when comparing productivity across firms.

A case study in the design of flexible assembly systems

Abstract: The design of production systems is generally based on economic considerations, which are related to certain technical criteria, such as capacity, availability, and reliability. To realize a cost-effective design, these technical and economic criteria should be considered in their mutual coherence during the conceptual design process. This paper focuses on a productivity model, which is related to this subject. This model allows an opinion to be formed about the technical and economic performance of conceptual robotic assembly cells, during the process of design. First, the system design process is discussed in brief, after which the productivity variables are presented. An illustration of the model is used to assess the technical and economic behavior of alternative system structures for the assembly of a power plug assortment.

The Missing Link: Technology, Productivity, and Investment

Abstract: This paper examines the relationship between productivity, investment, and age for over 14,000 plants in the U.S. manufacturing sector in the 1972-1988 period. Productivity patterns vary significantly due to plant heterogeneity. Productivity first increases and then decreases with respect to plant age, and size and industry are systematically correlated with productivity and productivity growth. However, there is virtually no observable relationship between investment and productivity or productivity growth. Overall, the results indicate that plant heterogeneity and fixed effects are more important determinants of observable productivity patterns than sunk costs or capital reallocation. Key Words: productivity, investment, technical change

Productivity and Efficiency in Restaurants A Data Envelopment Approach

Abstract: In this article, we argue that efficiency and productivity should be clearly distinguished as two separate concepts conveying different information. This difference was clearly brought out by our empirical results which show that Fast Food restaurants are superior in terms of productivity whereas Fine Dining do better in terms of efficiency. Market prices make up the link between productivity and efficiency and skilful pricing may compensate for poor productivity. When key ratios are analysed cross-sectionally, it is always difficult to find measurements that are valid and reliable across all firms. The problem of commensurability is particularly difficult when the firms have multiple input and/or multiple output. Data Envelopment Analysis (DEA) is a measurement method that presents an opportunity to compare the efficiency of firms with multiple input and output and to analyse the lack of relative efficiency, for certain firms in a sample, in terms of technical inefficiency and scale inefficiency

Adapting the SIMAP productivity model to software maintenance

Abstract: Industrial production firms have over time developed tools and models to ensure that productivity is measured and understood. This article suggests the use of such a model, the SIMAP model, for software maintenance. This article also shows how data could be organized and categorized in order to fully benefit from the SIMAP productivity model.

Total factor productivity growth and characteristics of the production technology in the UK chemicals and allied industries

Abstract: An insight to the structure of technology in the UK chemicals and allied industries is provided Employing both the conventional index number and the cost function methods to measure productivity growth, the amount of information lost in the former approach is emphasized Moreover, some of the crucial assumptions underlying the conventional approach have been found to be invalid for the industries in question

Capital Formation, Technical Change, and Profitability in Prairie Agriculture

Abstract: This report comprises a number of related components focussed on the role of capital and capital formation in production, productivity and competitiveness in Canadian agriculture, concentrating on the Prairie region of Western Canada in the period 1970 to the early 1990s. The report includes the analysis of investment flows and capital stocks data, problems in measuring productivity, and an assessment of the relative roles of technological change and economies of scale in estimated productivity growth. In addition to the nature and extent of technical change, other features of the structure of production technology are analyzed by estimation of a translog cost function. Input mix and investment data indicate an important increment in investment, resulting in a larger machinery stock in the 1970s and a modest increment in the stocks of capital related to agricultural land and buildings. Changes in the input mix result from the initial post-war substitution of capital for labour and an eventual rising share of materials inputs including agrichemicals. The land input appears to change little and slowly. Land related investment and repairs also show a slow but steady growth over the period. In the 1980s, the labour share slowly rises, reversing its previous downward trend. The important increase in capital-related investments, particularly machinery, in the 1970s is followed by a considerable drop in the 1980s. Dis-investment appears to be taking place in the late 1980s and early 1990s. However, productivity and total output do not appear to be shrinking, and productive capacity does not appear to have been seriously affected in the short run by the lower levels of investment in the 1980s. Cost function parameters, elasticities of derived demand for inputs, and Allen partial elasticities of input substitution are estimated in the report. Results indicate an increasingly rigid production structure in the 1970s and early 1980s, lower elasticities of derived input demand and reduced input substitution. Such trends suggest that technology in prairie farming was becoming a "technological package". This trend was modestly reversed in the late 1980s when a slowly changing input mix resulted from reduced use of chemicals and machinery. These changes may be related to changing economic conditions which generally favoured cost reduction as opposed to output expansion. The relatively slow response indicates the persistence of rigidities. It is not yet clear whether slightly lessened rigidity is the start of a new trend or only temporary. Testing functional properties of the cost function indicates rejection of homotheticity, of constant return to scale, and of Hicks neutrality. The index number methodology for the empirical measurement of agricultural productivity is analyzed. A major problem is measurement of "durable" capital items. Aggregation or indexing procedures is another important conceptual issue. Given the conceptual superiority of flexible indexes we would recommend that Divisia-based or chained Fisher indexing be employed rather than traditional indexes such as the Laspeyres or Paasche. Our calculations suggest there is little practical difference in productivity estimates based on the Tornqvist-Theil approximation to the Divisia index as opposed to the Fisher "ideal" chained index. Total factor productivity, terms of trade and return to costs ratios are estimated. Although productivity growth nearly fully compensated for adverse movements in the terms of trade for prairie agriculture over the entire postwar period from 1948 to 1991, it was much less effective in doing so in the 1980s and profitability deteriorated. The evidence suggests that the farming system in Western Canada has been experiencing important transformations in the last two decades in our period of study. In terms of the structure of production technology, our fmdings indicate non-homotheticity, biased technical change, and a more important role for economies of scale. For productivity measurements, the use of flexible forms, such as Divisia or Fisher Chained procedures, is preferred. The agricultural system, having achieved a new ceiling in investment in the 1970s, went through a process of adjustments and correction in the second half of the 1980s. There was a reduction in the annual level of investments and a shrinkage in the capital stock, mostly due to a decline in farm machinery. Given technical change and data problems, it is difficult to say if the level of investment prevailing at the end of the period was sufficient to compensate for actual capital depreciation. Future data availability and further research may provide a more definite answer.

A First Look at Educational Productivity in Texas.

Abstract: This paper explores educational productivity in Texas as it relates to the development of an educational productivity model based on information in the Accountability System of the Texas Education Agency. A number of educational inputs were identified that were found to be related to specific educational outputs. Stepwise regression analysis was used to develop an educational model relating independent variables to dependent variables. Initial results suggested that a richer dataset might be needed to develop a robust model. Data from the Texas Acadmic Excellence Indicator System (AEIS), which included achievement test scores, were then used to develop revised models. Results of these analyses produced models that were slightly improvea over the preliminary models, although it was still difficult to explain much of the variance in student performance outputs from available AEIS educational inputs. In fact, the best educational productivity models that could be derived were those based on graduates and graduates with advanced seals. Appendix 1 contains a bibliography of 20 resources used to prepare this report. Appendix 2 lists the AEIS variables considered. (Contains five tables and nine references.) (SLD) ******) ************************************************************ Reproductions supplied by EDRS are the best that can be made from the original document. *********************************************************************** U S DEPARTMENT OF EDUCATION On. CCI Educahonar Research and Immo...men! E DU DONA( RE SOURCES INFORMATION CE N TE R ERICA Tr.s document nas cen ieOrnduc ed as ieceived 'join !he pf nn Or nrganitatiiin wiginating ir Minor (flanges have Osier` made lc. intc,iiive reprnduCtqln duality Points 01 vie. Or opinions Staled in thiS(tin men) Oo nor nelessarrry represent otfir .a. OE RI Dosmon oknu v A First Look at Educational Productivity in Texas J. E. Gonzalez, Ph.D. Texas Center for Educational Research P.O. Box 2947 Austin, TX 78768 Southwest Educational Research Association Conference Dallas. TX January 27, 1995 I. Educational Productivity Introduction: 'PERMISSION TO REPRODUCE THIS MATERIAL HAS BEEN GRANTED BY TO THE EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) In the context of economic theory, "productivity" can be maximized with resource allocation decisions, which are based on analysis of inputs and outputs. The mathematical expression for the relationship between inputs and outputs is referred to as a "production function." For over 80 years, researchers have been discussing productivity in the context of educational processes. In general, the body of research that considers the "inputs" of education such as expenditures; as they relate to the "outputs" of education such as student achievement, is referred to as "educational productivity." According to Rossmiller (1979), an educational production function can be represented by an equation that describes the transformation of a set of resource inputs into a desired set of outputs. Rossmiller (1979, p. 6) writes that an educational production function would take the general form: Afro = g (Fo, So, Po, 10),

Surface heterogeneity : a factor to improve the net primary productivity estimation

Abstract: This study concerns the integration of remote sensing data at high temporal resolution associated with agro-meteorological data in the modelization of vegetal production, at regional scale. Therefore, the objectives are : iThe passing from a regional analysis of vegetation monitoring to a vegetation component analysis during the vegetative cycle, iiThe quantification of vegetal production thanks to on adding of radiometric elements (calculated at the previous step) in a productivity model, coming from Monteith model, iiiThe spatialization of production data thanks to the use of satellite imagery. The inversion of Linear Mixture Modelling enables to retrieve temporal profiles of reflectances (in visible and near infrared) for each type of vegetation from NOAA-AVHRR data. These reflectances are used to estimate the Net Primary Productivity (NPP) for the maize.'millet, fallow and savannas. 1Introduction One of the major problem for the net primary productivity estimation from the satellite data lies on the characterization of the different vegetal formations present in sahelian regions or temperate ones (such as south of France). The most studies which aim to estimate net primary productivity use data with large view angle and a low spatial resolution such NOAA-AVHRR (Tucker et Sellers, 1986 [20]) because of their high temporal resolution. At the observation scale of about one kilometer, the response of the sensor corresponds to an integration of vegetal formations which have different biophysical properties and then a none identical contribution to the primary productivity (Pech et al., 1986 [ 141; Settle et Drake, 1993 [ 193). This is frequent particularly in sahelian zone where the vegetation is very heterogeneous at the scale of NOAA-AVHRR. This leads to the notion of mixed pixel. An average productivity information is therefore obtained, using radiometric measurements in the red and near-infrared channels. Furthermore, such a model does not allow primary productivity and associated physiological processes to be quantitatively monitored during the growing season. In order to approach the biological reality, the modelling must be based on the sum of the productivities of these different constituent elements such as vegetation communities or vegetation categories. This means that the problem of individual productivities modelling for the p components of an ecosystem must be solved. It is then important to be able to monitor the spectral behavior of each object of a given site and to find a good characterization OF the spatial distribution of the vegetation cover inside the mixed pixel. When several autors (Quarmby et al, 1992 [ 161; Cross et al., 1991 [5] ; Holben et al., 1993 [IO]) retrieved the fractional cover after they have extracted the pure spectral responses (endmembers) for a maximum of four types of vcgetation. It is not the same objectif presented in this paper. The aim of this paper is to retrieve the reflectance for Jifl'crcnt types of vegetation present in the mixed pixel.

Why electric power

Abstract: The form of energy supplied to the point of use influences the growth of productivity. Utility grade electric power has induced the most rapid growth in productivity in recent times. There is a physical foundation for this phenomenon. The control of energy use inherent in electric power brings with it greater opportunities for innovation than obtain with other forms of energy for the point of use. There are, almost certainly, other forms of electric power for the point of use that can further accelerate productivity growth.