Productivity and Performance : A GMM approach

Tsionas, Mike G. and Kumbhakar, Subal C. (2023) Productivity and Performance : A GMM approach. Oxford Bulletin of Economics and Statistics, 85 (2). pp. 331-344. ISSN 0305-9049

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Abstract

In this paper we propose a single-step generalized method of moments (GMM) approach to estimate a production function with multiple quasi-fixed and variable inputs as well as productivity and inefficiency. Our approach relies on the system consisting of the production function, the first-order conditions of expected profit maximization with respect to the variable inputs, as well as general formulations for dynamic productivity and inefficiency. The estimation procedure takes care of correlations of both productivity and inefficiency with the variable inputs without using any distributional assumptions on the error terms (including inefficiency) in the system. We use Indonesian manufacturing census data to illustrate workings of our procedure.

Item Type:

Journal Article

Journal or Publication Title:

Oxford Bulletin of Economics and Statistics

Additional Information:

This is the peer reviewed version of the following article:Tsionas, M.G. and Kumbhakar, S.C. (2023), Productivity and Performance: A GMM approach. Oxf Bull Econ Stat. https://doi.org/10.1111/obes.12530 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1111/obes.12530 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2000/2002

Subjects:

?? statistics, probability and uncertaintyeconomics and econometricssocial sciences (miscellaneous)statistics and probabilityeconomics and econometricssocial sciences (miscellaneous)statistics and probabilitystatistics, probability and uncertainty ??

Departments:

Lancaster University Management School
Lancaster University Management School > Economics

ID Code:

183443

Deposited By:

ep_importer_pure

Deposited On:

10 Jan 2023 14:05

Refereed?:

Yes

Published?:

Published

Last Modified:

09 Apr 2025 03:45

URI:

https://eprints.lancs.ac.uk/id/eprint/183443