TY  - JOUR
AU  - Nemoto,Jiro
AU  - Goto,Mika
TI  - Productivity, Efficiency, Scale Economies and Technical Change: A New Decomposition Analysis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11373
PY  - 2005
Y2  - May 2005
UR  - http://www.nber.org/papers/w11373
L1  - http://www.nber.org/papers/w11373.pdf
N1  - Author contact info:
Jiro Nemoto
School of Economics
Nagoya University
Nagoya, 464-8601
Japan
Tel: +81 52 789 4929
Fax: +81 52 789 4924
E-Mail: nemoto@cc.nagoya-u.ac.jp

Mika Goto
AB  - This paper aims to examine the productivity change of the Japanese economy using the data pertaining to the 47 prefectures during the period 1981-2000. The decomposition analysis of the Hicks-Moorsteen-Bjurek productivity index is conducted to explore the sources of the productivity change. In summary, technical change and efficiency change are two of the most important components driving procyclical productivity. We find that their relative importance varies over periods. Supply shocks captured by technical change component caused upturns in productivity in the mid and late 80s and in 1999 and 2000. Supply shocks also caused downturns in the early and mid 90s. On the other hand, demand shocks captured by the efficiency change component drove upturns of productivity in 1984, 1990, and 1996 when supply shocks were not detected.
ER  -