000025842 001__ 25842
000025842 005__ 20180121173726.0
000025842 037__ $$a1002-2016-78276
000025842 041__ $$aen
000025842 245__ $$aAN APPLIATION OF THE STOCHASTIC LATENT VARIABLE APPROACH TO THE CORRECTION OF SECTOR LEVEL TFP CALCULATIONS IN THE FACE OF BIASED TECHNOLOGICAL CHANGE
000025842 260__ $$c2003
000025842 269__ $$a2003
000025842 270__ $$malastair.bailey@imperial.ac.uk$$pBailey,   Alastair
000025842 270__ $$mx.t.irz@reading.ac.uk$$pIrz,   Xavier
000025842 300__ $$a21
000025842 336__ $$aConference Paper/ Presentation
000025842 446__ $$aEnglish
000025842 490__ $$aContributed Paper
000025842 520__ $$aThe measurement of the impact of technical change has received significant attention within the economics literature. One popular method of quantifying this impact of technical change is the use of growth accounting index numbers. However, in a recent article Nelson and Pack (1999) criticise the use of such index numbers in situations where technical change is likely to be biased in favour of one or other inputs.  In particular they criticise the common approach of applying observed factor shares as proxies for partial output elasticities to weight the change in quantities which they claim are only valid under Hicks neutrality. Recent advances in the measurement of product and factor biases of technical change developed by Balcombe et al (2000) provide a relatively straight-forward means of correcting product and factor shares in the face of biased technical progress.  This paper demonstrates the correction of factor shares used in the construction of a TFP index for UK agriculture over the period 1953 to 2000 using both revenue and cost function share equations appended with stochastic latent variables to capture the bias effect. Technical progress is shown to be biased between both individual input and output groups. Output and input quantity aggregates are then constructed using both observed and corrected share weights and the resulting TFPs are compared. There does appear to be some significant bias in TFP if the effect of biased technical progress is not taken into account when constructing the weights.
000025842 650__ $$aResearch and Development/Tech Change/Emerging Technologies
000025842 6531_ $$aBiased Technological Change
000025842 6531_ $$aLatent Variables
000025842 6531_ $$aTFP.
000025842 700__ $$aBailey, Alastair
000025842 700__ $$aIrz, Xavier T.
000025842 700__ $$aBalcombe, Kelvin George
000025842 8564_ $$s254770$$uhttp://ageconsearch.umn.edu/record/25842/files/cp03ba01.pdf
000025842 887__ $$ahttp://purl.umn.edu/25842
000025842 909CO $$ooai:ageconsearch.tind.io:25842$$pGLOBAL_SET
000025842 912__ $$nMade available in DSpace on 2007-03-07T19:01:27Z (GMT). No. of bitstreams: 1
cp03ba01.pdf: 254770 bytes, checksum: 652eca6ea208f666b40e6c4c31820795 (MD5)
  Previous issue date: 2003
000025842 982__ $$gInternational Association of Agricultural Economists>2003 Annual Meeting, August 16-22, 2003, Durban, South Africa
000025842 980__ $$a1002