By A. Dogramaci (auth.), Ali Dogramaci (eds.)
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Extra resources for Developments in Econometric Analyses of Productivity: Measurement and Modeling Issues
J = 1 (3-7b) J Condition (3-7a) is true by construction. The value of aggregate value added equals the sum of all sectoral value added. Conditon (3-7b) follows from sectoral and aggregate accounting identities. Verifying (3-7b) begins with the sectoral accounting identity relating the value of total output and payments to all factors of production: qJZ· = :EPI"LI" J I'lJ + :EPkK k· + :EPiX iJ· JJ k i U=I,2, ... 6 The value of sectoral value added equals the value of output less the value of intermediate input purchases: qJ Vi = qjZj - :EPiXij I U= 1,2, ...
Quebec had the highest rate of growth of TFP and Ontario was third behind the Atlantic region. In Ontario the level of labor productivity has roughly been 20% higher and the level of TFP 5% higher than in Quebec. Over 16 years, the growth rate advantage achieved by Quebec has been sufficiently small that much of the advantage held by Ontario at the beginning of the period remains at the end. For the two-digit industries, the levels of labor productivity in Quebec relative to Ontario are shown in Table 2-6.
J 1:q~ yJ 1 = (3-18a) J + 1: 1: Plj L lj . J J 1:qY y. J 1: 1: y. q~ J Pkj K kj k 1:qY y. j . J J = 1 (3-18b) J Condition (3-18a) is true by construction. Condition (3-18b) follows directly from accounting identities relating the value of a sector's total production both to the sum of the values of that sector's deliveries to intermediate and final demands and to the sum of that sector's payments to all factors of production: 7 qjZj = ~Pj~i , qjZj = "£pljLlj I + q} Y; U = 1,2, ... , n) + 1:PkjK kj + 1:p ,Xij U = k , (3-19) 1,2, ...
Developments in Econometric Analyses of Productivity: Measurement and Modeling Issues by A. Dogramaci (auth.), Ali Dogramaci (eds.)