Decompositions of profitability change using cost functions: a comment
Grifell-Tatjé, Emili (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa)
Lovell, C. A. Knox (University of Queensland)
University of Queensland. Centre for Efficiency and Productivity Analysis

Imprint:	Australia: Centre for Efficiency and Productivity Analysis, School of Economics University of Queensland, 2015
Description:	11 p.
Abstract:	Recently Diewert (2014) decomposed cost change into the product of four drivers. He then combined three of these drivers with a novel measure of returns to scale to decompose profitability change. We use an implicit Konüs input quantity index to show that his expression for profitability change is the product of a price recovery index and an implicit productivity index, and we extend his analysis by exploiting new relationships between theoretical Konüs and empirical Fisher price indexes to obtain two new decompositions of profitability change. One pairs a Konüs price recovery index with a Fisher implicit productivity index, the other has pure Fisher structure, and we note the advantages of each.
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Language:	Anglès
Series:	Working papers series (University of Queensland. Centre for Efficiency and Productivity Analysis); 03/2015
Document:	Working paper
Subject:	Productivitat ; Profitability ; Productivity ; Implicit index numbers

Adreça alternativa: https://economics.uq.edu.au/files/5112/WP032015.pdf

11 p, 1.8 MB

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Research literature > Working papers