Showing papers on "Productivity model published in 1998"

Agricultural Productivity in the United States

Abstract: Increased productivity is a key to a healthy and thriving economy. Consequently, the trend in productivity, economywide, is one of the most closely watched of our common economic performance indicators. Agriculture, in particular, has been a very successful sector of the U.S. economy in terms of productivity growth. The U.S. farm sector has provided an abundance of output while using inputs efficiently. Agricultural productivity growth has been an important source of U.S. economic growth throughout the century, but the years since 1940 have seen an even faster growth in agricultural productivity. The annual average increase in productivity from 1948 to 1994 was 1.94 percent. This reflects an annual growth in output of 1.88 percent per year and an actual decline in agricultural inputs of 0.06 percent per year. This report describes changes in U.S. agricultural productivity, and its output and input components, for 1948-94. The report also discusses factors that have affected productivity trends and provides detailed, technical information about the USDA system for calculating productivity.

Using a Programming Approach to Measure International Agricultural Efficiency and Productivity

Abstract: Multifactor agricultural productivity for seventy countries is calculated using a programming method. Productivity measures are divided into indices that measure technical efficiency and technical change. Agriculture in many developing countries is technically inefficient but technical change has had a greater impact on agricultural productivity. Multifactor productivity is declining in many developing countries where both agricultural output and the use of some agricultural inputs has rapidly grown. The level of education in a country and research services are factors which can explain differences in agricultural productivity growth between countries.

A Quasi-Malmquist Productivity Index

Abstract: The Malmquist productivity index is based on distance functions, which are reciprocals of radial Debreu-Farrell efficiency measures, and which have a number of desirable properties. Linear programming techniques are frequently employed to calculate the efficiency measures. However these techniques can leave slacks, which constitute a non-radial form of inefficiency which is not incorporated into the analysis. Thus a radial efficiency measure overstates true efficiency, the reciprocal distance function understates the distance to the relevant efficient subset, and the Malmquist productivity index is adversely affected, although in an analytically indeterminate direction. This has led us to consider a new definition of “one-sided” efficiency, and to develop a new nonradial efficiency measure which incorporates all slacks on the selected side. Replacing conventional radial efficiency measures with our new non-radial efficiency measures generates what we call a quasi-Malmquist productivity index. We illustrate our quasi-Malmquist productivity index with an application to productivity change in Spanish banking.

A Cost Indirect Evaluation of Productivity Change in UK Universities

Abstract: The study provides an empirical analysis of productivity change in publicly-funded UK universities, against a background of government policy specifically designed to enhance the productive efficiency of universities in the provision of teaching and research. The nonparametric analysis employs a cost indirect approach to measuring productivity change, taking explicit account of the quality of research output and decomposing productivity change into technical change and efficiency change. The latter is also decomposed into changes in pure technical efficiency, scale efficiency and output congestion. Changes in size efficiency are also computed. On average, productivity declined by 4% over 1989–92, mainly as a result of regressive technical change. Evidence of biased technological change was found, with the frontier shifting out in favour of the teaching outputs and in relative to the research output.

Estimating Radial Measures of Productivity Growth: Frontier vs Non-Frontier Approaches

Abstract: In this paper, we propose an alternative econometric framework for estimating and decomposing productivity change that does not require a distribution for inefficiency or the uncorrelatedness between inefficiency and the regressors. We develop our methodology for the input-oriented radial measure of productivity change and establish that this equals the negative of the time change in the log cost function. Our econometric framework is based on a fixed-effects, multiple-output cost frontier, where we decompose productivity change into discrete shifts in the frontier and changes in firm efficiency levels relative to the frontier. We also show that the standard non-frontier specification is nested within our frontier model and thus can produce different estimates of productivity change. Using a panel of twelve US railroads from 1951 to 1975, our estimated cost frontier suggests average annual productivity growth of roughly 0.3 percent, with efficiency change rising then falling over the period. Specification tests reject the non-frontier model, which yields smaller gains in productivity.

Productivity Analysis: In the On-site Food-service Segment

Abstract: An accurate measure of productivity is an invaluable tool for evaluating food-service operations, but traditional measures are misleading.

Inflow Performance Relationships of Horizontal and Multibranched Wells in a Solution- Gas-Drive Reservoir

Abstract: In predicting and optimizing the performance of single and multiple wells, or complex well architecture, within a drainage or flow unit, we have favored benchmark analytical or semianalytical models. Recently, a general productivity model has been constructed and presented that allows for the performance prediction of any single- and multi-well configuration within any reservoir geometry in both isotropic and anisotropic media. Such an approximation is known to have limitations when applied to two-phase reservoir flow. This work used a numerical simulator to generate IPR's for horizontal or multibranched wells producing from a solution-gas-drive reservoir. First, a base case is considered with typical fluid, rock, and reservoir properties. Then, variations from the base case are investigated. These variations cover a wide range of fluid, reservoir, and well characteristics. The effects of numerous reservoir and fluid properties on the calculated curves are investigated. Bubblepoint pressure and reservoir depletion have a significant effect on the curves. A generalized dimensionless IPR based on nonlinear regression analysis of simulator results is developed. This IPR curve is then used to predict the performance of horizontal and multibranched wells in a solution-gas-drive reservoir combined with our productivity model. For relatively low bubblepoint pressures, the curves coalesce on Vogel's classic relationship. For higher pressures they deviate substantially.

Technological Progress versus Efficiency Gain in Manufacturing Sectors

Abstract: This study decomposes the nonparametric Malmquist productivity index for 36 Korean manufacturing sectors into two components: technological change and technical efficiency change. The empirical results show that while each sector displays quite different growth patterns, productivity growth is dominated by technological change. Technological change is found to have a negative correlation with efficiency change. Secondary regression performed in this study identifies the relationship between productivity growth measures and several key policy variables, such as effective protection rate, market concentration, and so forth. The productivity estimates are compared with those of the conventional Tornqvist productivity index.

Productivity optimization of cellular manufacturing systems

Abstract: A two-stage CM productivity model is proposed. In the first stage, a 0–1 integer programming model is developed to design CM system. In this model, part families and machine cells are formed simultaneously. In the second stage, a total productivity model for CM systems is developed to optimize the total productivity of manufacturing cells by further using the unutilized machining time available on various machines. An example problem is illustrated.

Assessment of the Relationship Between Productivity and Performance Quality in the U.S. Domestic Airline Industry

Abstract: Output quality in the context of transportation productivity is investigated. The major findings relate to two distinctions: network density versus capacity utilization and productivity versus input cost efficiency. It was found that greater transportation network density is associated with increased productivity, lower output costs, and most interestingly, improved output quality. In contrast, increased capacity utilization is not associated with lower output costs or with improved quality. For the productivity versus efficiency distinction, increased productivity is associated with lower total output costs and greater output quality yet higher input costs. Thus, higher factor input costs can be justified on the basis of output costs and quality advantages. Implications for governmental policy and managerial decision making are that improvements in network density and productivity are more likely to have lasting benefits than are increases in capacity utilization or input efficiency.

Input Price, Quantity, and Productivity Indexes for a Revenue-Constrained Firm

Abstract: This paper develops the micro-economic theory of input price and quantity indexes and input-based productivity indices for a revenue-constrained firm. Generally speaking, a firm transforms inputs into outputs. When priced, outputs generate revenue and inputs incur cost. It is customary to (partially) model the economic behavior of a firm as cost minimization. Then the input price index is calculated as the ratio of minimum costs under two different price regimes. However, in doing so, one has to condition on certain output variables. One route is to take the output quantities as the conditioning variables. The firm’s objective is then conceived as the production of a vector of output quantities with minimal cost. This leads to a theory of input price indexes which is, except for the dimension of the vector of conditioning variables, isomorphic to the theory of the cost-of-living index for consumers.

Quality, productivity and information systems

Abstract: Among the critical challenges facing business managers is the need to increase the productivity of their organizations and improve the quality of their products or services. To meet these challenges, managers have invested heavily in information technology (IT), some successfully, some less successfully. Many investments have been made without a clear understanding of how quality, productivity and IT are related. The purpose of this chapter is to review the current state of knowledge of these relations and explore the role of information systems in quality and productivity improvement programs.

Productivity Measurement from a Reference Technology: A Distance Function Approach

Abstract: An approach to productivity measurement based on distance function measurement is developed in this paper A series of reference technologies are constructed by augmenting observed inputs and outputs such that the resulting effective netputs are consistent with the weak axiom of profit maximization Geometric means of year-ahead and year-back distance function values serve as measures of multifactor productivity changes Both primal measures from the inner bound and dual measures from the outer bound of the reference technologies are calculated Resulting productivity measures are similar to those derived using index number approaches, but potentially provide greater information regarding the reference technologies

Inflow Performance Relationships Gas-Drive Reservoir of Horizontal and Multibranched

Abstract: In predicting and optimizing the performance of single and multiple wells, or complex well architecture, within a drainage or flow unit, we have favored benchmark analytical or semianalytical models. Recently, a general productivity model has heen constructed and presented that allows for the performance prediction of any single- and multi-well configuration within any reservoir geometry in both isotropic and anisotropic media. Such an approximation is known to have limitations when applied to two-phase reservoir flow. This work used a numerical simulator to generate IPR’s for horizontal or multibranched wells producing from a solutiongas-drive reservoir. First, a base case is considered with typical fluid, rock, and reservoir properties. Then, variations from the base case are investigated. These variations cover a wide range of fluid, reservoir, and well characteristics. The effects of numerous reservoir and fluid properties on the calculated curves are investigated. Bubblepoint pressure and reservoir depletion have a significant effect on the curves, A generalized dimensionless RR based on nonlinear regression analysis of simulator results is developed. This IPR curve is then used to predict the performance of horizontal and multibranched wells in a solution-gas-drive reservoir combined with our productivity model. For relatively low bubblepoint pressures, the curves coalesce on Vogel’s classic relationship. For higher pressures they deviate substantially.

Capital data for productivity measurement

Abstract: The paper discuss the use of capital data from FADN (Farm Account Data Network) for agricultural total factor productivity measurement calculating multifactor productivity index. Despite methodological problems related to construction of the indexes, as well as problems associated with the appropriate measurement of particular inputs, especially capital input, growth accounting estimates generally provide a great deal of information regarding productivity. The appropriate measurement of capital in the explanation of productivity change is an important and debated topic. The purpose of this paper is to debate a method for deriving the appropriate measure of capital services and find a way to make the FADN supply data that allows measures for varying levels of capital utilization. The capital data that can be obtained from the FADN are, in general terms, of better quality than the macroeconomics data when analysing the agricultural private sector. They are also very useful if we want to increase the level of desegregation on the productivity analysis should it be important to discuss the procedures involved in constructing the capital input index.