Description: Department Seminar

Location: 368A Heady Hall

Contact: John Crespi

CV

Title: Unveiling the Robustness of Productivity Comparisons with Basket Alikeness Measures

Abstract: We introduce an indicator of the robustness of numerical comparisons of total factor productivity(T FP) indexes, which we call the T F P basket alikeness measure (T BAM). Robustness matters because the true production technology is not known with certainty. T BAM is derived from the same data used for T F P index calculations and serves as a relative measure of homogeneity across input and output ratios. Applied to the agricultural sectors of the United States and China over1961-2016, we find that U.S. T F P comparisons are robust over longer periods, while China’s are robust over shorter ones, with cross-country comparisons generally lacking robustness.