The Research On Production Function And Performance Measurement Based On Projected Panel Data

Performance measurement of decision-making units, which convert inputs into outputs, is a hot area in the quantitative economics. By the definition of efficiency and productivity in economics, the relative performance of decision-making units is quantified by modeling the economic behavior of production. The most often used measurements are the partial productivity, total factor productivity, technical efficiency, technological change, scale economics, allocative efficiency, economic efficiency and managerial efficiency. This study is mainly concerned with the relationship between these measurements and measurement of these performances with the projected panel data, a kind of particular inputs and output data set.Beginning with an overview of the latest research on the performance measurements in methodology and application, the problems found involved in estimation of those efficiencies, especially the total factor productivity are caused mainly by the static analysis underlying in measuring some performance in production and some kind of uncertainty, such as the choice of input and output measure, the assumptions about production functions and the variety of methods used in estimation. In order to reduce these uncertainties, this research will follow a routine of the theoretical framework first, and then the empirical study. Moreover, it is in attempt to explore the measurement of performance by the dynamic analysis.One of problems unsettled in this area is the so-called empirical production function. The frontier production function, a parametric function of any form, can be estimated by sample data. This study shows that the projected panel data, which is the inputs and relative exponential maximum output data set, obtained by conducting the data envelopment analysis with the log inputs and output, is approximately piecewise Cobb-Douglas under a certain assumption. Thus the expression of production function can be determined preliminarily without violation of its economic implication and no further test should be followed.The vagueness of economic implication and geometric meaning is a pitfall in the decomposition of the economic growth. The algebraic decomposition based on the equal efficiency production function in this research, which reveals the...