Productivity and Welfare

Abstract

Technical change is generally characterized by a rate and biases, both evaluated for given producer prices. This paper examines the potential discrepancy between this rate and the corresponding rate of consumer welfare change as measured by Allais distributable surplus. We postulate a general equilibrium context with various market failures (taxes, quotas, imperfect competition, and “poorly priced” commodities), and use comparative statics to express the rate of welfare change in terms of the rate and biases of the technical change. An elementary simulation model of a taxed economy suggests that the rate of welfare change may differ from the rate of technical change by as much as 50% under plausible circumstances. Copyright Springer Science+Business Media, Inc. 2005productivity, Allias surplus, general equilibrium, D2, D5, D6, O3,

Callisthenic Productivity. A Challenge for the Traditional Economic Productivity Indicators

“…For the purposes of this paper we approach productivity from a more comprehensive perspective, encompassing distributional implications, human development and the capacity of the country to provide for its citizens and also to absorb the results and/of effects of all the production processes. Similar studies have been conducted by Aoyama et al (2010), Badinger (2008), Becchetti et al (2013), Chatzimichael and Tzouvelekas (2013), Fulginiti and Perrin (2005), Ilmakkunas and Piekkola (2014), Restuccia and Rogerson (2013), Rios-Rull and Santaeulalia-Llopis (2010), etc.…”

Economic Productivity Flip-Flop in the Danube Countries

“…Similar studies have been conducted by Fulginiti and Perrin (2005), Badinger (2008), Rios-Rull and Santaeulalia-Llopis (2010), Aoyama, Yoshikawa, Iyetomi and Fujiwara (2010), Restuccia and Rogerson (2013), Chatzimichael and Tzouvelekas (2013), Becchetti, Castriota and Tortia (2013), Ilmakkunas and Piekkola (2014) etc.…”

Economic impacts of bad output in agriculture: two essays for Brazilian sugarcane production

“…This paper analyzed the welfare impact of mechanical harvest in the sugarcane value chain of the state of São Paulo, Brazil, using dual cost functions to characterize the sector and a displacement equilibrium model, like in Perrin (1997), Fulginiti and Perrin (2005) and Bairagi (2015).…”

“…The authors found that the rate of technical change usually is a biased measure of the welfare benefits from technical change, due to changes in the domestic good prices, caused by the technical change, or due to the price distotions caused by taxes. Fulginiti and Perrin (2005) expanded this equilibrium approaches and also evaluated the impact of technical change for welfare changes, including other market failure situations caused by taxes, subsidies, quotas, imperfect competition and poorly priced goods, like environmental goods, to analyze the rate of welfare change in terms of the rate and biases of the technical change. The authors demonstrated that for a taxed economy, the difference between the welfare change and the rate of technical change may be 50% under plausible circumstances.…”

“…The purpose of this study is to estimate the welfare gains and losses of the mechanization harvesting of sugarcane in São Paulo due the Law 11,241, using an equilibrium displacement model, like in Perrin (1997), Fulginiti andPerrin (2005), Wamisho (2010) and Bairagi (2015), considering all the value chain of sugarcane production.…”