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Productivity: should we include bads?
Dept. of Agriculture and Resource Economics, Dept. of Economics, Oregon State University.
Dept. of Economics, Oregon State University.
Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE). SLU.
Umeå University, Faculty of Social Sciences, Centre for Regional Science (CERUM). Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
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2012 (English)Report (Other academic)
Abstract [en]

This paper studies the interaction between economic and environmental performance. Applying the directional output distance function approach, the purpose is to compare estimates of Luenberger total factor productivity indicators, including and excluding bad outputs. Specifically, based on unique firm level data from Swedish manufacturing covering the period 1990 to 2008, we explore to what extent excluding bad outputs leads to erroneous productivity measurement. The main conclusion is that bad outputs should not only be included in the estimations, but also reduction in bad outputs should be credited. From this point of view the directional output distance function approach and the Luenberger indicator serves as an appropriate basis of productivity measurement.

Place, publisher, year, edition, pages
Umeå: Department of Economics, Umeå University , 2012. , 26 p.
Series
CERE Working Paper / CERE arbetsrapport, 2012:13
Keyword [en]
Swedish manufacturing, Luenberger indicator, emissions, productivity
National Category
Economics Earth and Related Environmental Sciences
Identifiers
URN: urn:nbn:se:umu:diva-88445OAI: oai:DiVA.org:umu-88445DiVA: diva2:715701
Available from: 2014-05-06 Created: 2014-05-06 Last updated: 2016-09-14Bibliographically approved

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Grosskopf, ShawnaLundgren, TommyMarklund, Per-OlovWenchao, Zhou
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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
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