# Questions tagged [productivity]

A measure of efficiency in production for some given set of inputs

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### Literature recommendation

Classic economic theory suggests people earn wages according to their productivity. Over time CEO's, directors, managers and the like seem to earn more relative to the 'normal worker'. Lets call this ...
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### Competitive wages under imperfect information

Do competitive wages always have to be defined by marginal productivity? Can we have competitive wages which are not based on productivity, when the information is not perfect? To put it in context, ...
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### Human Capital Vs TFP

I'm interested in familiarizing myself with some of the intra-debates that have occurred over the years, having to do with Mankiw, Romer, Weil (1992) and Klenow, Rodriguez-Clare (1997). Some argue ...
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### Basic New Keynesian model with flexible price

I would like to know what would be the response of variables in the Basic New Keynesian model but with flexible prices (ie not with Calvo pricing). For example I have troubles to see how having ...
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### etymology of TFP (total factor productivity)

In economics, total-factor productivity (TFP), also called multi-factor productivity, is usually measured as the ratio of aggregate output (e.g., GDP) to aggregate inputs.1 Under some simplifications ...
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### Arellano and Bond (1991) GMM estimation in R by using plm package

I am a last-year student at university, currently working on my Bachelor's (so still learning R), and I really hope that you would suggest a potential solution (even if to use Python). So, the main ...
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### How can I add a multidimensional panel to estimate TFP (year, id, region) in R?

I'm not sure about adding fixed effects for the variables year,id,region (using the estprod library) as in this paper using LP stimator. In the STATA forum ( #18 #...
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### Unbalanced panel data in prodest package in R

I have a question regarding the usage of unbalanced panel data for TFP estimation by using the prodest package. The dataset could be found here: https://drive.google.com/file/d/...
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### All else being equal, What is the value of job creation?

Job creation value Just to clarify, I have no experience, academic background or deep understanding of economics. Apologies for such a basic question but I couldn't find a real answer. I hear a lot ...
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### Is this a correct way of calculating productivity? And can the proposed data be (accurately) used for doing so?

I want to know if my thinking for calculating productivity [2019-USD/hour-worked] is correct. Basics: Take the GDP of a country and divide by the total amount of hours worked in that country -> ...
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### Stochastic Frontier Analysis (SFA) in Stata: Technical Efficiency Estimates

I am prepared to look quite the fool, but hopefully you can help me. I am trying to perform Stochastic Frontier Analysis on a balanced panel dataset by estimating the following model: I think the ...
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### Prodest package in R for TFP estimation, gives different results

I have the following issue: each time I run the estimation of the TFP by using prodest package in R 4.0.3, I obtain different coefficients before the variables as well as omega variable is different: ...
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### Asset bubbles and empirical findings for monetary stimulus' effect on productivity

It may be fairly empirical that leveraged investments can cause "asset bubbles" that often result in really highly priced assets (which I'll refer to as the ("leverage argument") --...
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### Arellano and Bond (1991) or Blundell and Bond (1998) in R estimation

I have the following problem with the Arellano and Bond (1991) or Blundell and Bond (1998) estimators in R using the plm package. I receive the following problem when trying to run the needed ...
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### Are prices part of total factor productivity?

I am trying to understand how production is related to income/profit and where do prices enter. Suppose there is a single firm with a Cobb-Douglas production technology: $$Y=AK^{\alpha}L^{\beta}$$ ...
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### prodest package in R, TFP growth estimation

I have a question regarding the results and its transformations received from prodest package estimation. So, the dataset is available here https://drive.google.com/file/d/1aedWYABus1fQjKWxkOmYOmxv-...
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### TFP in R via estprod package

I want to calculate the TFP by using the estprod function (I use R 4.0.2). As far as I understood the only way to calculate the TFP is manual following this logic . ...
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### Which diagnostic tests are suitable for Measuring Total Factor Productivity (TFP)?

I did the TFP estimation with Levinsohn Petrin (in R) but I have doubts about the diagnostic tests e.g. I know that the estimation of autocorrelation in residuals has to be done (it would be very ...
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### TFP estimation in R by using prodest and estprod packages

I am writing my Bachelor Thesis and I really need help with the TFP estimation. so far I have a dataset with log values of Value added (va), Labour (l), Capital (k), and Materials (m). The initial ...
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Productivity paradox https://en.wikipedia.org/wiki/Productivity_paradox is the name for the slow productivity growth (i.e. slow GDP growth) of the developed economies despite the robotics, AI, ...
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### Data on labour productivity in India

I am trying to find historical data at the district, or ideally at the city-level on labour productivity (by sector, with a special focus on agriculture) or perhaps data on a similar measure?
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### Measurement for the downstream use of a commodity

I am looking to find a measurement that would tell me the size of the market of the downstream use of some particular commodity. For example, salt or wheat would be used by many companies downstream. ...
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### Why labor-augmenting technological progress increases employment and wages?

My textbook says that advances in technology typically raise the marginal product of labor and shift the labor demand curve to the right and calls it labor-augmenting technological advances. The book ...
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### CES aggregator for intermediates with heterogeneous productivity

I'm following Atkeson, Burstein (2019 JPE), and cannot understand the aggregation result. There is measure $M(z)$ of firms with productivity $z$, with production function  y(z) = z k(z)^\alpha l(z)^...
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### Inclusion of firms on the efficient frontier of a Production Possibility Set

I'm working through Cooper's Data Envelopment Analysis, and they are going over Production Possibility Sets. They present 9 firms, each with two inputs and one output: Graphically it easy to see why ...
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### GDP per Installed Computing Facilities

I would like to quantify the importance of computing power for economic aggregate output in an economy in a "simple" GDP-to-installed-CPU ratio. The idea is to calculate a measure similar to GDP-to-...
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### Productivity issue

Could someone help with the following? Company produces products of daily demand. It employs workers In number of 12 people (HER) Wages of workers. The costs of hiring and firing are 25 per employee, ...
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### What counts and doesn't count as rent seeking?

Rent seeking is often associated with lobbying. Investopedia's article on rent seeking states that rent seeking is gaining wealth without "creating" wealth. Is this the only commonly used definition? ...