• Title/Summary/Keyword: Solow residual

Search Result 4, Processing Time 0.019 seconds

Empirical Analysis on the Industrial Productivity in the Electricity·Gas·Water Service Sector

  • Zhu, Yan Hua;Kang, Joo Hoon;Park, Sehoon
    • Journal of Korea Society of Industrial Information Systems
    • /
    • v.20 no.4
    • /
    • pp.25-37
    • /
    • 2015
  • The early studies indicated that the firm with monopoly power is likely to engage in X-inefficiency such as a managerial slack. The reflection of the X-inefficiency theory has led to the issue that the public sector may be more inefficient than the private sector. In Korea like other many countries the electricity gas water service which can be considered as natural monopoly have been provided mostly by the public sector. In order to provide the empirical evidence to the argument that the public sector may be more inefficient than the private sector this paper estimated the four types of Solow residual which is called the total factor productivity in the electricity gas water service industry with the associated empirical model and compared its productivity with one in the manufacturing industry. The empirical results do not support the argument that the public sector may be more inefficient or less productive than the private sector.

The Cyclicality of Productivity, Market Power, and Returns to Scale in the Korean Open Economy: An Empirical Analysis 1975-2010 (한국경제의 총요소생산성의 순환성에 관한 실증분석(1975-2010))

  • Park, Sehoon;Zhu, Yan Hua
    • International Area Studies Review
    • /
    • v.15 no.3
    • /
    • pp.239-261
    • /
    • 2011
  • The cyclicality of productivity has been one of the essential issues in macroeconomics. Since Solow(1957) developed the dominant approach to the measurement of productivity growth, Solow's approach, which assumes the perfect competition, the constant returns to scale, and the full use of input factor has been modified particularly in Hall's(1990) and Basu's(1996) works. Their researches take account of market power, returns to scale, and variable factor utilization. This paper establishes the empirical model based on Hall's(1990) and Basu's(1996) models, estimates 4 types of Solow's reidual in manufacturing and 2 service industries over the period 1975:1-2010:4, and analyzes the cyclicality of measured productivity. The result proved the measured productivity to be procyclical in manufacturing industries and electricity and water industry, and in contrast to the Basu's, the variable factor utilization transformed the countercyclicality of measured productivity into its procyclicality in the Korean economy.

An Empirical Analysis on Market Power and Productivity in the Korean Medical Service Industry (한국 의료서비스산업의 시장지배력과 생산성에 관한 실증분석)

  • Park, Sehoon;Kang, Joo Hoon;Jung, Yong-Sik
    • Journal of Korea Society of Industrial Information Systems
    • /
    • v.19 no.2
    • /
    • pp.93-103
    • /
    • 2014
  • This paper establishes the empirical model based on Hall's(1990) and Basu' s(1996) models, estimates the five types of productivity in the medical service industry over the period 1975:1-2010:4, and analyzes the cyclicality of measured productivities and their correlations with the industrial real wage. The empirical results are summarized as the followings. First, there proved to be substantial market power in pricing and returns to scale in production for the medical service industry. Second, the three types of productivity among 5 types showed to be procyclical. Third, the average labor productivity, the original Solow residual, and the cost-based Solow residual are expected to provide reasonable indexes in analyzing the relationship between productivity and real wage.

A Study on Measurement of TFP and Determinant factor (IT제조업의 총요소생산성 추정 및 결정요인 분석)

  • Lee, Young-Soo;Kim, Jung-Un;Jung, Hyun-Joon
    • Journal of Korea Society of Industrial Information Systems
    • /
    • v.13 no.1
    • /
    • pp.76-86
    • /
    • 2008
  • This paper estimates the TFP in IT manufacturing (total factor productivity) by employment size of establishment and analyses the determinants of it. And the panel data is consisted of time series and cross section data of 4 employment size of establishment over $1990{\sim}2004$. During the period from 1991 to 1997 TFP increased positively irrespective of the employment size of establishment, but from 1998 to 2004 TFP increase rate turned negative except large size(more than 300) of establishment. TFP assume macro variables and policy variables as the determinants of IT manufacturing TFP. The analysis of whole size of establishment shows that sales growth rate is significantly positive, which makes us conclude that there is a teaming by doing effect and economy of scale. But some variables(i.e. IT capital stock, policy financing, and openness etc.) are significant in only a few models. So there may be different effect by employment size of establishment. In TFP determinants analysis by employment size of establishment, we find that coefficients of policy financing and openness variables are significantly positive. The larger employment size of establishment is, the larger scale economy is. And for large size(more than 300) establishment, IT capital stock helps propel the increase of the productivity.

  • PDF