This paper analyzes productivity growth in 17 OECD countries over the period 1979-1988. A nonparametric programming method (activity analysis) is used to compute Malmquist productivity indexes. These are decomposed into two component measures, namely, technical change and efficiency change. We find that U.S. productivity growth is slightly higher than average, all of which is due to technical change. Japan's productivity growth is the highest in the sample, with almost half due to efficiency change.

This paper seeks to determine whether the underlying assumption of utility maximization can be empirically validated for the local public sector. In addition, three alternative functional forms of a system of demands are compared on the basis of their theoretical restrictions as well as their predictive performance. Based upon a likelihood ratio test we find that the restrictions implied by utility maximization are too restrictive to be consistent with the unrestricted estimates. Once integrability restrictions are imposed, however, both CES and Cobb-Douglas utility functions are consistent with the data. The unrestricted estimates had the best predictive performance based on information inaccuracy.

, Shawna Grosskopf, C. A. Knox Lovell, Suthathip Yaisawarng, Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach, The Review of Economics and Statistics, Vol. 75, No. 2 (May, 1993), pp. 374-380

Rolf Faere, Shawna Grosskopf, C. A. K. Lovell, Carl Pasurka, Multilateral Productivity Comparisons When Some Outputs are Undesirable: A Nonparametric Approach, The Review of Economics and Statistics, Vol. 71, No. 1 (Feb., 1989), pp. 90-98

This paper analyzes productivity growth in seventeen OECD countries over the period 1979-88. A nonparametric programming method (activity analysis) is used to compute Malmquist productivity indexes. These are decomposed into two component measures, namely, technical change and efficiency change. The authors find that U.S. productivity growth is slightly higher than average, all of which is due to technical change. Japan's productivity growth is the highest in the sample with almost half due to efficiency change.

Equality and efficiency are key issues in educational reform. Here the authors analyze the efficiency and equality consequences of various school finance reforms using a cost-indirect output distance function. This function readily models multiple-output production under conditions of budgetary constraint, and provides a natural measure of performance that is closely related to Farrell-type measures of efficiency. The analysis suggests that despite school district inefficiency, finance reforms can affect student achievement. However, any potential gains in output from redistribution are dwarfed by the potential gains from increased efficiency. More strikingly, the analysis demonstrates that budgetary reforms designed to equalize expenditures could actually increase the inequality of student achievement.