Measuring Productivity

CRENoS Working Paper No. 2008/18

48 Pages Posted: 7 May 2009

See all articles by Massimo Del Gatto

Massimo Del Gatto

CRENOS - Centre for North South Economic Research; 'Gabriele d'Annunzio' University of Chieti-Pescara - Faculty of Economics

Adriana Di Liberto

Università di Cagliari and Crenos; IZA Institute of Labor Economics

Carmelo Petraglia

University of Basilicata, DiMIE

Multiple version iconThere are 2 versions of this paper

Date Written: December 2008

Abstract

Quantifying productivity is a conditio sine qua non for empirical analysis in a number of research fields. The identification of the measure that best fits with the specific goals of the analysis, as well as being data-driven, is currently complicated by the fact that an array of methodologies is available. This paper provides economic researchers with an up-to-date overview of issues and relevant solutions associated with this choice. Methods of productivity measurement are surveyed and classified according to three main criteria: i) macro/micro; ii) frontier/non-frontier; iii) deterministic/econometric.

Keywords: productivity measurement, TFP, Solow residual, endogeneity, simultaneity, selection bias, Stochastic Frontier Analysis, DEA, Growth accounting, GMM, Olley-Pakes, firm heterogeneity, price dispersion

JEL Classification: O40, O33, O47, C14, C33, C43

Suggested Citation

Del Gatto, Massimo and Del Gatto, Massimo and Di Liberto, Adriana and Petraglia, Carmelo, Measuring Productivity (December 2008). CRENoS Working Paper No. 2008/18, Available at SSRN: https://ssrn.com/abstract=1400084 or http://dx.doi.org/10.2139/ssrn.1400084

Massimo Del Gatto (Contact Author)

CRENOS - Centre for North South Economic Research ( email )

Cagliari
Italy

'Gabriele d'Annunzio' University of Chieti-Pescara - Faculty of Economics ( email )

Faculty of Economics - Department of Economics
Viale Pindaro, 42
Pescara, 65127
Italy

Adriana Di Liberto

Università di Cagliari and Crenos ( email )

via S. Ignazio 78
Cagliari, 09123
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Carmelo Petraglia

University of Basilicata, DiMIE ( email )

Via dell'Ateneo Lucano 10
Potenza
Italy

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