Growth Accounting in the Open Economy: Parametric and Nonparametric Estimates

Kohli, Ulrich

doi:10.3233/jem-1990-16301

Cited by 56 publications

(48 citation statements)

References 9 publications

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“…19 See Appendix A. Our measure of the terms-of-trade effect-see (37) below-is different from the one proposed by Diewert and Morrison (1986), and which we have used in previous work; see Kohli (1990Kohli ( , 1991, for instance:…”

Section: Measurementmentioning

confidence: 98%

“…where C t,t À 1 is once again the growth factor of nominal GDP, P t,t À 1 is a Törnqvist price index of the GDP output components (including imports), and X t,t À 1 is a Törnqvist quantity index of domestic factor endowments: Y t;tÀ1 u wðp D;t ; h t ; g t ; x L;t ; x K;t ; tÞ wðp D;tÀ1 ; h tÀ1 ; g tÀ1 ; x L;tÀ1 ; x K;tÀ1 ; t À 1Þ ¼ p D;t y D;t þ p X ;t y X ;t À p M ;t y M ;t p D;tÀ1 y D;tÀ1 þ p X ;tÀ1 y X ;tÀ1 À p M ;tÀ1 y M ;tÀ1 ð33Þ Kohli (1990Kohli ( , 1991 for such an econometric approach. 19 See Appendix A.…”

Section: Measurementmentioning

confidence: 99%

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Real GDP, real domestic income, and terms-of-trade changes

Kohli

2004

Journal of International Economics

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152

118

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Section: Measurementmentioning

confidence: 98%

Section: Measurementmentioning

confidence: 99%

Real GDP, real domestic income, and terms-of-trade changes

Kohli

2004

Journal of International Economics

Self Cite

152

118

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“…These findings imply that the mathematically simpler and computationally easier To¨rnqvist growth decomposition for the revenue side (Diewert and Morrison, 1986;Kohli, 1990;Roe, 1996, 1997) and for the cost side (Kohli, 2003) is more practicable than the Fisher procedure.…”

Section: Introductionmentioning

confidence: 85%

“…Diewert and Morrison (1986) derived an exact decomposition of revenue growth based on the To¨rnqvist index. 3 This decomposition was implemented by Kohli (1990) and by Roe (1996, 1997), and was adapted by Kohli (2003) in decomposing growth in costs. However, as noted above, the Fisher index satisfies factor reversal but not the To¨rnqvist index.…”

Section: Introductionmentioning

confidence: 99%

Decomposing growth in revenues and costs into price, quantity and total factor productivity contributions

Dumagan

Ball

2009

Applied Economics

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This article employs the superlative Fisher and Tornqvist indexes for exact decomposition of growth in nominal revenues and costs. The findings confirm the well-known result that these indexes very closely approximate each other, implying that the mathematically simpler and computationally easier Tornqvist is the more practicable index. Moreover, this article's nominal growth decomposition yields all the results from the more common real growth decomposition and is also more informative for policy purposes. Application to the US agricultural sector during 1948-2001 shows that of the 3.31% average annual growth in revenues, TFP growth contributed 1.90 percentage points (pct. pts.); growth in output prices added 1.43 pct. pts.; while growth in input quantities contributed - 0.02 pct. pts. (i.e. fewer inputs). Therefore, real output growth (or revenue growth less output price growth) was 1.88 pct. pts., revealing that TFP's 1.90 pct. pts. growth contribution was fully responsible for real output growth with fewer inputs. Since revenues measure incomes, these results suggest that policy should focus more on measures to foster TFP growth than on specific price or quantity instruments to enhance income growth.

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“…In their adaptation of Diewert and Morrison (1986) and Kohli (1990), Diewert et al (2009) show how a productiontheoretic framework can be set up to consistently derive a de-composition of real income growth into changes in input quantities, productivity and relative price effects. Their framework is in discrete time and the authors demonstrate that a Törnqvist index formula provides an exact 3 We shall follow the convention in the System of National Accounts and use real in the sense that a value has been expressed in equivalents of consumption units by deflating it with a price index of private consumption.…”

Section: Decomposition Of Real Gross Incomementioning

confidence: 99%