Showing papers on "Productivity model published in 2013"
TL;DR: In this article, the authors develop a model of international trade with two dimensions of heterogeneity, process productivity and product productivity, and conduct systematic tests of these predictions using manufacturing establishment data for India, the U.S., Chile, and Colombia, and find strong support for the model.
224 citations
TL;DR: In this paper, the authors used data from 50 enterprises in China's iron and steel industry to evaluate their energy efficiency and productivity change over the period 2001-2008 and found that the average energy efficiency was only 61.1% while the annual growth rate of productivity was 7.96%.
196 citations
TL;DR: In this paper, the authors presented a system dynamics-based approach to model labor productivity, where the complex inter-related structure of different factors affecting labor productivity was modeled using system dynamics approach.
140 citations
Posted Content•
TL;DR: The authors analyzes the productivity in the US rail industry for the period 1980 - 2006 and finds evidence that aggregate productivity gains can be attributed to returns to scale and the reshuffling of resources to more efficient firms.
Abstract: This paper analyzes the productivity in the US rail industry for the period 1980 - 2006. I propose a value-added production framework to circumvent the problem of measurement error in one input. I find evidence showing that aggregate productivity gains can be attributed to returns to scale and the reshuffling of resources to more efficient firms. However, productivity slows down for the period 1995 - 2000 after important concentrations. I also look at the correlations between firm-level productivity and the operating environment. My results show that failing to control for the omitted price variable bias leads to an overestimation of productivity gains.
94 citations
TL;DR: In this article, the authors examined the impact of international and domestic technology transfers on firms' productivity performance in a sample of 448 Belgian innovating firms during 2003-2006 and found that a diverse external technology sourcing strategy combining local know-how with knowledge from abroad is most effective.
Abstract: We examine the impact of international and domestic technology transfers on firms' productivity performance in a sample of 448 Belgian innovating firms during 2003-2006. Technology transfers may occur through R&D contracting, purchase of licenses and know-how, purchase of specialized machinery, hiring of specialized personnel, and various informal channels. Estimates of a dynamic productivity model show that firms engaging in international knowledge transfer strategies record substantially and significantly higher productivity growth. While we do not find statistical evidence of complementarity between international and domestic transfers, the largest impact on productivity is found if firms combine international and domestic transfer strategies, suggesting that a diverse external technology sourcing strategy combining local know-how with know-how from abroad is most effective. Such combined domestic and international technology sourcing strategies are associated with firms' basic research orientation, R&D intensity, and the successful use of technology protection strategies to appropriate the benefits of innovation efforts. Foreign multinational firms are more likely to adopt technology transfer strategies solely focusing on international transfers. Multinational firms do not exhibit faster productivity growth if the effects of technology transfers and R&D are taken into account. © The Author 2012. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.
60 citations
TL;DR: In this article, the relationship between quality of work and productivity was inspected using Spanish aggregate data for the period 2001-2006, and it was shown that quality is not only an objective per se, but also may be a production factor able to increase the wealth of regions.
Abstract: We inspect the relationship between quality of work and productivity. Using Spanish aggregate data for the period 2001–2006, we find that quality of work is an additional factor to explain productivity levels in sectors and regions. Consequently, quality of work is not only an objective per se, but it also may be a production factor able to increase the wealth of regions. In our work we use two alternatives definitions of quality of work, coming respectively from survey data and from a social indicators approach. Besides, we employ two different measurements of labour productivity, in order to test the robustness of our result. We estimate our model using a simultaneous equation model for our panel of data, and we find important differences in high and low human capital sectors. The former display a positive relationship between quality of work and productivity, while the latter show a negative relationship.
59 citations
TL;DR: In this article, the authors compared time differences between consecutive StanForD stem files collected by harvester onboard computers with models produced using traditional time and motion techniques for the same initial trees.
Abstract: Productivity models produced using time differences between consecutive StanForD stem files collected by harvester onboard computers were compared with models produced using traditional time and motion techniques for the same initial trees. Three sites were studied in Pinus radiata plantation clearfell operations across southern Australia. Delays and trees with multiple leaders or broken tops were removed from the data. This was done for the stem file data using filters. The same filters were applied to data from all sites. No significant differences were found between the models at each site, though the stem file productivity models generally had a poorer fit than the time and motion models. The advantages of using stem files for modelling are the ready availability of stem file data, which enables rapid creation of generalised harvester productivity models and avoids short-term changes in productivity caused by the presence of an observer (the “Hawthorne effect”). Disadvantages are the inabilit...
55 citations
TL;DR: The 2008 System of National Accounts recognizes capital services as the conceptually correct way to measure the input of capital into production as discussed by the authors, which allows setting up an integrated system of industry-level and aggregate productivity accounts that are consistent with the 2008 SNA.
Abstract: The 2008 System of National Accounts recognizes capital services as the conceptually correct way to measure the input of capital into production. This allows setting up an integrated system of industry-level and aggregate productivity accounts that are consistent with the 2008 SNA. The paper discusses the new aspects in the 2008 SNA and sets out such an integrated system, based on Jorgenson's aggregate production possibility frontier and gross output-based industry productivity measures. Recent results for industry productivity measures for the United States complete the picture.
42 citations
TL;DR: In this paper, the authors use a proprietary data set on the oor-level operations at the Bhilai Rail and Structural Mill (RSM) in India to understand the determinants of changes in plant productivity between January 2000 and March 2003.
Abstract: The importance of Total Factor Productivity (TFP) in explaining output changes is widely accepted, yet its sources are not well understood. We use a proprietary data set on the oor-level operations at the Bhilai Rail and Structural Mill (RSM) in India to understand the determinants of changes in plant productivity between January 2000 and March 2003. During this period there was a 35% increase in output with minimal changes in the stock of physical capital or the number of employees, but sizable reductions in the number and duration of various types of production delays. We model interruptions to the production process as a function of worker characteristics and find that a large part of the avoidable delay reductions are attributable to training. Overall, changes in all delays account for over half the changes in productivity. Our results provide some explanation for the large within-industry di erences in productivity observed in developing countries and also suggest that specic knowledge-enhancing investments can have very high returns. Our approach also provides an example of how detailed data on production processes can be fruitfully used to better understand TFP changes, which have typically been treated as residuals in growth-accounting exercises.
38 citations
TL;DR: In this article, the authors examine and understand the inverse relationship between farm size and its efficiency from a novel angle by using multiple definitions of farm efficiency indicators like labor productivity, profit ratio, total factor productivity (TFP), and technical efficiency.
Abstract: Purpose – Whether there exists an inverse relationship (IR) between farm size and its efficiency remains a hotly debated question among agricultural economists. In most studies to date, farm efficiency is measured by land productivity. Thus, the IR actually measures the relationship between farm size and land productivity. The purpose of this paper is to examine and understand the IR from a novel angle by using multiple definitions of farm efficiency indicators like labor productivity, profit ratio, total factor productivity (TFP) and technical efficiency (TE). Design/methodology/approach – By using the farm-level panel data from Hubei province in China from 1999 to 2003, this paper employs the two-way fixed effect model of panel data and the stochastic frontier analysis of Battese and Coelli model to investigate the relationship between farm size and its production efficiency derived from the multiple definitions of production efficiency indicators including land productivity, labor productivity, profit ...
38 citations
TL;DR: In this article, the effect of regional policies in the agricultural field, with a specific focus on the Italian case, is evaluated through the Directional Output Distance Function (DODF) that is an extension of the Data Envelopment Analysis technique (DEA).
10 Nov 2013
TL;DR: In this article, a case study and sensitivity analysis for an excavator performing excavations is presented, which combines the multiple linear regressions (MLR) approach for modeling the productivity with the EPA's NONROAD model.
Abstract: Purpose – This paper aims to present the framework for a model that can be used to estimate the production rate, activity duration, total fuel use, and total pollutants emissions from earthwork activities. A case study and sensitivity analysis for an excavator performing excavations are presented.Design/methodology/approach – The tool is developed by combining the multiple linear regressions (MLR) approach for modeling the productivity with the EPA's NONROAD model. The excavator data were selected to build the productivity model, and emission factors of all type of pollutants from NONROAD model were used to estimate the total fuel use and emissions.Findings – Results indicate that the excavator productivity model had high precision and accuracy, low bias, with trench depth and bucket size are in the model, it can explain 92 per cent variability of productivity rate data, and can be used as the basis for estimating the fuel quantities that will be required and the total expected pollutant emissions for the...
01 Jan 2013
TL;DR: In this article, the issues of measuring productivity are discussed and measures to promote productivity in Nigeria are discussed, and the relevance of productivity and measures for promoting productivity in the country are discussed.
Abstract: Nigeria is confronted with challenges such as lack of infrastructure that facilitate economic and social service delivery, dearth of system capital and human resources, global financial and inflationary trends, high unemployment rate, poor industrial relation, use of obsolete and low production technologies and machinery in dualistic economies, economic mismanagement, high growth of poverty and insecurity. These challenges continue to limit the nation’s economic competitiveness and growth. It is in recognition of these challenges that, this paper is set to look at the issues of measuring productivity. Productivity is considered as a key source of economic growth and competitiveness and, as such, is basic statistical information for many international comparisons and country’s performance assessments. This paper begins with the concept of productivity and factors that determines productivity. Main types of measuring productivitygross output, value added, capital labour, capital productivity and KLEMPS Multifactor productivity are examined. Finally, the paper discusses the relevance of productivity and measures to promote productivity in Nigeria.
TL;DR: A negative correlation between intermediate input intensity and total factor productivity (TFP) is found and it is suggested that an empirical bias in productivity, as measured in national accounts, may arise due to the exclusion of intermediate inputs.
Abstract: Many models of economic growth exclude materials, energy and other intermediate inputs from the production function. Growing environmental pressures and resource prices suggest that this may be increasingly inappropriate. This paper explores the relationship between intermediate input intensity, productivity and national accounts using a panel dataset of manufacturing subsectors in the USA over 47 years. The first contribution is to identify sectoral production functions that incorporate intermediate inputs, while allowing for heterogeneity in both technology and productivity. The second contribution is that the paper finds a negative correlation between intermediate input intensity and total factor productivity (TFP)—sectors that are less intensive in their use of intermediate inputs have higher productivity. This finding is replicated at the firm level. We propose tentative hypotheses to explain this association, but testing and further disaggregation of intermediate inputs is left for further work. Further work could also explore more directly the relationship between material inputs and economic growth—given the high proportion of materials in intermediate inputs, the results in this paper are suggestive of further work on material efficiency. Depending upon the nature of the mechanism linking a reduction in intermediate input intensity to an increase in TFP, the implications could be significant. A third contribution is to suggest that an empirical bias in productivity, as measured in national accounts, may arise due to the exclusion of intermediate inputs. Current conventions of measuring productivity in national accounts may overstate the productivity of resource-intensive sectors relative to other sectors.
TL;DR: In this paper, the authors suggest a bottom-up approach that may be used by firms in planning, managing and forecasting productivity improvements, which has been successfully used for managing productivity improvement initiatives.
Abstract: Purpose – The steady incline in oil prices combined with the recent credit crisis and downturns in financial markets has driven organizations to re‐evaluate their manufacturing processes and bottom line. The purpose of this paper is to suggest a bottom‐up approach that may be used by firms in planning, managing and forecasting productivity improvements.Design/methodology/approach – A multiple‐case study approach was used: two comprehensive cases and seven short cases were used to illustrate the model.Findings – The lack of understanding of the relationship between productivity, profitability and performance has led to the application of piece‐meal solutions for problems in productivity. Bottom‐up approach in improving productivity will provide better results than top‐down approach.Originality/value – This paper describes the bottom‐up approach which has been successfully used for managing productivity improvement initiatives.
TL;DR: In this article, the authors decompose productivity growth of a group of producers into technical change and efficiency measures at the farm level using four years of farm-level data from forty-five grain producers in the low- to medium-rainfall zone of Western Australia.
Abstract: We provide empirical evidence to decompose productivity growth of a group of producers into technical change and efficiency measures at the farm level. Using four years of farm-level data from forty-five grain producers in the low- to medium-rainfall zone of Western Australia, we decompose productivity numbers to analyze total factor productivity. The results show that producers are generally technical, mix, and scale efficient, but the results for input and output mix efficiencies vary. The outcomes for input mix efficiency suggest that producers face some rigidity in their production decisions. In contrast, output mix efficiency suggests that most producers adjust their output mixes to account for different seasonal conditions and enterprise mixes.
TL;DR: In this paper, a valid model was developed to predict the productivity of chipping as part of these operations, considering the following variables: machine power (kW), piece size (m3), crew size, harvesting method, species, tree part, wood condition, wood lay-out, chipping type, propulsion, feeding method, point of chitting, season, location of chip discharge, country (Italy or Australia) and type of operation (biomass chip operation or pulp chip operation).
Abstract: The chipping operation is an important component of harvesting systems producing biomass and pulp chips. This paper aimed to develop a valid model to predict the productivity of chipping as part of these operations. Over a number of years more than 200 different time studies were conducted on chipping operations in Italy and Australia. Multiple regressions and backward stepwise data analysis methods were applied to develop a productivity prediction equation, considering the following variables: machine power (kW), piece size (m3), crew size, harvesting method, species, tree part, wood condition, wood lay-out, chipping type, propulsion, feeding method, point of chipping, season, location of chip discharge, country (Italy or Australia) and type of operation (biomass chip operation or pulp chip operation). The final productivity model included machine power, average piece size, location of chip discharge and type of operation as significant variables. The internal validation test was conducted using five wit...
TL;DR: In this article, the authors tried to determine the labor productivity of transportation, communication and financial sub-sectors using the input-output analysis approach, and the methodological setting is the utilization of the “labor coefficients” calculated from inputs and outputs tables of Malaysia for the years 2000 and 2005 as well as through surveys of related subsectors in 2012.
Abstract: Productivity reflects the ability of an organization or country to generate higher income or value-added. As Malaysia is taking a rigorous step to become an advanced country with high-income status by 2020, it is crucial to have high productivity in the production processes. Due to the high share of the transportation, communication and financial sub- sectors to the overall economy, they are considered as the stimulants to the overall growth. This paper attempts to determine the labor productivity of these three sub-sectors using the input-output analysis approach. The methodological setting is the utilization of the “labor coefficients” calculated from input-output tables of Malaysia for the years 2000 and 2005 as well as through surveys of related sub-sectors in 2012.
Posted Content•
01 Jan 2013
TL;DR: In this article, the authors highlight the issues relating to productivity measurement and analysis at the organizational levels, including what to measure, where to measure and when to measure productivity/performance, and the recent development in productivity measurement which uses the term value added as a surrogate for a firm's output.
Abstract: Productivity has survived for more than one century due to the recognition of its impacts on long-term business competitiveness. From a simple definition of output divided by input established in the late 1800s, productivity has continuously gathered a lot of interests from researchers and practitioners alike. Interestingly, productivity has been studied by several academic disciplines in business administration, economics, engineering, and psychology. Nowadays, being productive implies cost effectiveness and excellent performance. Despite the changes and uncertainties in global business environment, productivity has continued to evolve. In fact, the focus on productivity has played the key role in the expansion of low-cost airlines and the emerging product design which emphasizes commonality and interoperability. The text highlights the issues relating to productivity measurement and analysis at the organizational levels. These issues include what to measure, where to measure, how to measure, and when to measure productivity/performance. The recent development in productivity measurement which uses the term value added as a surrogate for a firm’s output is also included.
TL;DR: In this paper, the application of computer simulation to analysis manufacturing system in order to improve the productivity and efficiency of the production line by using computer simulation is discussed. And the authors introduce a color manufacturing line as a case study and the basic application of arena 13.9 software.
Abstract: In the manufacturing industry, managers and engineers are seeking to find methods in order to eliminate the common problems in manufacturing systems such as bottlenecks and waiting times. This is because that all of these kinds of problems impose extra cost to the companies. In addition, manufacturing companies are striving to sustain their competitiveness by improving productivity, efficiency and quality of manufacturing industry for instance high throughput and high resource utilization. The paper concentrates on the application of computer simulation to analysis manufacturing system in order to improve the productivity. Therefore, this study introduces a color manufacturing line as a case study and the basic application of arena 13.9 software. The goal of this paper is to improve the productivity and efficiency of the production line by using computer simulation. To achieve this goal, first the basic model of the current situation of production line was simulated. Second, three different alternatives were simulated and modified to find the best scenario based on the maximum productivity and minimum total cost.
TL;DR: In this paper, the authors developed analytical equations of productivity rate with the availability of automated lines as a function of structural, technical and technological parameters of industrial machines, allowing for the output of automated line to be modelled and their structures to be defined according to the level of productivity and availability.
Abstract: The basic attributes of any industrial machine are productivity rate, quality of products, as well as the cost and flexibility of manufacturing systems. Attributes of productivity are related to the theory of reliability, let alone the theory of efficiency of machines. The main attribute of reliability with any industrial machine is availability, which is the integrated index of the machine's reliability. The availability of industrial machines with complex designs should be a constituent of equations on productivity rate. This paper develops analytical equations of productivity rate with the availability of automated lines as a function of structural, technical and technological parameters of industrial machines. The equations allow for the output of automated lines to be modelled and their structures to be defined according to the level of productivity and availability.
TL;DR: Using time-varying stochastic frontier approach, Nguyen et al. as mentioned in this paper decomposed the change of productivity into technical change, technical efficiency change and scale efficiency change, and the evidence from estimating the spillovers in each corresponding components suggest that horizontal FDI bring negative spillovers mainly to technical change but positive spillovers to technical efficiency.
Abstract: While the positive productivity spillover from Foreign Direct Investment (FDI) to domestic owned firms in host countries is unequivocally emphasized in theory, the empirical evidence is contradictory. This paper, based on firm level data in Vietnam (enterprise census, 2000-2005), provides more inside on that. Using time-varying stochastic frontier approach, the study decomposed the change of productivity into technical change, technical efficiency change and scale efficiency change. The evidence from estimating the spillovers in each corresponding components suggest that horizontal FDI bring negative spillovers, mainly to technical change but positive spillovers to technical efficiency. Vertical FDI also have mixed impacts to domestic owned firm’s productivity. Keywords: Stochastic frontier model, foreign direct investment, productivity spillover, panel data
TL;DR: In this article, the authors examined the labour productivity issue by nearest neighbor algorithm (NNA) in order to classify products, considering the required workforce for standard parts in each category and also their production processes, multiple regression method is applied to calculate the value of products and to standardise outputs.
Abstract: In today’s competitive world, productivity is a fundamental concept in assessing economic performance of organisations. Due to the fierce competition and customer requirement variation, organisations should produce various types of products. This type of production requires a sophisticated productivity measurement system and organisations still confront with the challenges of lacking an appropriate system. Labour productivity is one of the most important indices among partial productivity indicators and plays a key role in the productions and services as outcome. In this paper, labour productivity issue is examined by nearest neighbour algorithm (NNA) in order to classify products. In the following, considering the required workforce for standard parts in each category and also their production processes, multiple regression method is applied to calculate the value of products and to standardise outputs. A case study is also presented to examine the validity of proposed method. Some advantages of this method include; increasing labour productivity, improving production system, a more precise planning and responding to market fluctuation.
Journal Article•
TL;DR: In this article, the authors model the joint production of desirable and undesirable output production (that is, CO2 emissions) of airlines and show that pollution abatement activities of airlines lowers productivity growth.
Abstract: This study models the joint production of desirable and undesirable output production (that is, CO2 emissions) of airlines. The Malmquist–Luenberger productivity index is employed to measure productivity growth when undesirable output production is incorporated into the production model. The results show that pollution abatement activities of airlines lowers productivity growth, which suggests that the traditional approach of measuring productivity growth, which ignores CO2 emissions, overstates ‘true’ productivity growth. The reliability of the results is also tested and verified using confidence intervals based on bootstrapping.
TL;DR: In this paper, the authors reviewed current productivity measurement literature, particularly that pertaining on the construction site, and offers recommendations/suggestions, for improvement of productivity at the site, also showed that productivity can be measured by monthly planned/targeted concrete and actual consumption of concrete data.
Abstract: Productivity has for many years been an issue for the construction site. This paper reviews current productivity measurement literature, particularly that pertaining on the construction site, and offers recommendations/suggestions, for improvement of productivity at the site. It also shows that productivity can be measured by monthly planned/targeted concrete and actual consumption of concrete data. Whereas targeted concrete is the input value and actual consumption of concrete is the output of the productivity. Considering single factor type of productivity i.e. concrete we have calculated the productivity for shell and core type of contract. It also show few reasons, why productivity at construction site is reduced due to improper shuttering, reinforcement activity.
TL;DR: In this article, a case study and sensitivity analysis for an excavator performing excavations is presented, which combines the multiple linear regressions (MLR) approach for modeling the productivity with the EPA`s NONROAD model.
Abstract: Earthwork activities are typically performed by heavy duty diesel (HDD) construction equipment that consumes large quantities of diesel fuel use and emits large quantities of pollutants, including nitrogen oxides (NOx), particulate matters (PM), hydrocarbon (HC), carbon monoxide (CO), and carbon dioxide (). This paper presents the framework for a model that can be used to estimate the production rate, activity duration, total fuel use, and total pollutants emissions for earthwork activities. A case study and sensitivity analysis for an excavator performing excavations are presented. The tool is developed by combining the multiple linear regressions (MLR) approach for modeling the productivity with the EPA`s NONROAD model. The excavator data from RSMeans Heavy Construction Data were selected to build the productivity model, and emission factors of all type of pollutants from NONROAD model were used to estimate the total fuel use and emissions. The MLR model for the productivity rate can explain 92% of the variability in the data. Based on the model, the fuel use and emissions of excavator increase as the trench depth increase, but as the bucket size increase, the fuel use and emissions decrease.
Posted Content•
TL;DR: In this paper, a non-parametric approach for adjusting the multifactor productivity growth (MFPG) measure for variations in capacity utilization over time is presented, where a capital utilization measure is derived from the economic theory of production and is estimated by comparing the ex-post return with the exante expected return on capital.
Abstract: This paper presents a non-parametric approach for adjusting the multifactor productivity growth (MFPG) measure for variations in capacity utilization over time. In the framework developed here, a capital utilization measure is derived from the economic theory of production and is estimated by comparing the ex-post return with the ex-ante expected return on capital. The non-parametric approach is then compared with the parametric approach and the standard growth accounting framework. Both the non-parametric and parametric approaches correct for the cyclical bias in the standard MFPG measure, but the non-parametric approach offers more practical adjustment for capacity utilization, because it is easier to implement and more in line with the non-parametric approach long used by statistical agencies and researchers.
01 Jan 2013
TL;DR: In this article, the authors present a comprehensive model for product-service systems productivity assessment along the service provision chain, which distinguishes between potential, process and outcome, and further differentiates between service provider and customer from a qualitative and quantitative point of view.
Abstract: Although the early stages of engineering service development are essential, methods and tools to proactively and comprehensively evaluate the productivity of service processes are rare. Therefore, this paper presents a comprehensive model for product-service systems productivity assessment along the service provision chain. The novel productivity model distinguishes between potential, process and outcome thus covers all dimensions of a product-service system. The model further differentiates between service provider and customer from both a qualitative and quantitative point of view. A set of value drivers and success criteria is proposed in a structured manner, resulting in various levers to optimize a product-service system. The model is made fully operational by defining influence factors, representing parameters to optimize service productivity and by key figures measuring service effectiveness and efficiency. To evaluate the novel service productivity model, field data and expert opinions from two German engineering companies are considered.
Posted Content•
TL;DR: In an effort to unlock the black box of mixed empirical evidence for productivity spillovers from foreign direct investment in host countries, this paper examined the role of geographical proximity and inter firm interaction in determining productivity spillover of FDI.
Abstract: In an effort to unlock the black box of mixed empirical evidence for productivity spillovers from foreign direct investment in host countries, this paper, using the case of Vietnam, examined the role of geographical proximity and inter firm interaction in determining productivity spillovers of FDI. The spatial productivity model specified based on the empirical spillovers literature and spatial econometric model. This paper confirms negative effect of horizontal spillovers. The distance and interaction are confirmed to be two determinants of the significance of spillover effects. The paper finds the positive backward and negative forward spillovers. Indirect effect (or the inter-regional spillovers) is found about twice to four times higher than the direct effect (or the intra-regional spillovers) but such kind of indirect effect is quickly attenuated for a certain distance. The paper also finds the evidence of the effect arising from the social interaction among local firms in productivity spillovers. The testing results suggest that local firm's productivity is substantially driven by the agglomeration effect and the presence of interand intra-regional FDI.
TL;DR: In this article, three distinct productivity growth measures based on gross output, value added, and cash flow are estimated and discussed using an index theory based decomposition model, deviating from making neo-classical assumptions and acknowledging the role of profits.
Abstract: Multifactor productivity growth measures can be constructed using different input–output concepts. We estimate three distinct productivity growth measures respectively based on gross output, value added, and cash flow and discuss their economic interpretation. By making use of an index theory based decomposition model, we deviate from making neo-classical assumptions and acknowledge the role of profits. Applying the productivity growth index framework to farm level Flemish FADN data (1990–2003), we show that the estimated percentage growth of productivity is sensitive to the input–output concept under consideration. The empirical practicability of these complementary productivity growth measures depends on the purpose of measurement.