Calculating models for total factor productivity measurement
DOI:
https://doi.org/10.5585/exactaep.2021.18140Keywords:
productivity, efficiency, countriesAbstract
Productivity measures the level of efficiency a particular economy presents in producing goods and services. Thus, increasing productivity is the fastest route to achieve economic growth and social well-being. This article aims to estimate and compare four Total Factor Productivity (TFP) measurement models. The models chosen were: Olley & Pakes - OP (1996); Levinsohn & Petrin – LP (2003); Wooldridge - Wool (2009); and Ackerberg, Caves & Frazer - ACF (2015). Per capita energy consumption was employed as the intermediate input. The results suggest that the ACF (2015) model is an improvement form the OP and LP models, while presenting statistically significant results. The Wool (2009) model is also an improvement and, once more, presented similar results. Considering the ACF model presents high dispersion, the Wool model is the preferred TFP measurement model.
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