Abstract
This chapter has two principal aims. The first is to measure total factor productivity (TFP) change in Australian coal-fired electricity generation. The second aim is to compare and contrast two alternative approaches to the calculation of Malmquist TFP indices. Namely, a data envelopment analysis (DEA) approach (Färe, Grosskopf, Norris and Zhang, 1994) and a stochastic frontier analysis (SFA) approach (similar to that used in Perelman, 1995). We also compare these results with those obtained using the more traditional Törnqvist index approach (Caves, Christensen and Diewert, 1982).
This is a revision of a paper presented to the International Conference on Public Sector Efficiency, UNSW, Sydney, 27–28 November, 1997. The data used in this study is taken from Coelli (1995), a study which was part-financed by the Australian Electricity Supply Industry Research Board. I am grateful to Prasada Rao, Rolf Fare Kevin Fox and an anonymous referee for comments made on earlier drafts. Any errors that remain are my own.
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Coelli, T. (2002). A Comparison of Alternative Productivity Growth Measures: With Application to Electricity Generation. In: Fox, K.J. (eds) Efficiency in the Public Sector. Studies in Productivity and Efficiency, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-3592-5_7
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DOI: https://doi.org/10.1007/978-1-4757-3592-5_7
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