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Relative sources of European regional productivity convergence: A bootstrap frontier approach

Enflo, Kerstin LU and Hjertstrand, Per LU (2006) In Working Papers, Department of Economics, Lund University
Abstract
We address the issue of Western European regional productivity growth and convergence by means of Data Envelopment Analysis (DEA), decomposing labor productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labor productivity distribution. We also account for the inherent bias and the stochastic elements in the efficiency estimation using bootstrapping methods. We find that the relative ranking of the bias-corrected efficiency scores remains stable after the bias correction and that the DEA successfully identifies the regions on the production frontier as... (More)
We address the issue of Western European regional productivity growth and convergence by means of Data Envelopment Analysis (DEA), decomposing labor productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labor productivity distribution. We also account for the inherent bias and the stochastic elements in the efficiency estimation using bootstrapping methods. We find that the relative ranking of the bias-corrected efficiency scores remains stable after the bias correction and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Efficiency, bootstrap, DEA, Regional Convergence
in
Working Papers, Department of Economics, Lund University
issue
17
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
f78b0353-7a0a-4fd3-9399-c0b0507bb9fa (old id 1387275)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2006_017.htm
date added to LUP
2009-04-20 12:27:25
date last changed
2016-10-07 15:28:07
@misc{f78b0353-7a0a-4fd3-9399-c0b0507bb9fa,
  abstract     = {We address the issue of Western European regional productivity growth and convergence by means of Data Envelopment Analysis (DEA), decomposing labor productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labor productivity distribution. We also account for the inherent bias and the stochastic elements in the efficiency estimation using bootstrapping methods. We find that the relative ranking of the bias-corrected efficiency scores remains stable after the bias correction and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions.},
  author       = {Enflo, Kerstin and Hjertstrand, Per},
  keyword      = {Efficiency,bootstrap,DEA,Regional Convergence},
  language     = {eng},
  number       = {17},
  publisher    = {ARRAY(0xbdb1d68)},
  series       = {Working Papers, Department of Economics, Lund University},
  title        = {Relative sources of European regional productivity convergence: A bootstrap frontier approach},
  year         = {2006},
}