Estimation and Analysis of Multifactor Productivity in Truck Transportation: 1987 – 2003
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Estimation and Analysis of Multifactor Productivity in Truck Transportation: 1987 – 2003

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    The analysis has three objectives: 1) to estimate multifactor productivity (MFP) in truck transportation during 1987-2003; 2) to examine changes in multifactor productivity in U.S. truck transportation, over time, and to compare these changes to MFP of the U.S. business sector and other transportation subsectors; and 3) to assess the factors that affected changes of MFP in truck transportation over the period of analysis. With respect to the calculation framework, the analysis estimates annual MFP in truck transportation in the United States over the 1987-2003 period. The data used for the estimations are based on the North American Industrial Classification System (NAICS). The basic data series were obtained from the Bureau of Economic Analysis. The labor data under NAICS were extrapolated from 1998 back to 1987. Data on the land input were estimated using the method of the Bureau of Labor Statistics, with some modifications. In future work, other methods will be used to estimate the land input. With respect to methodology, use is made of the basic growth-accounting methodology and the methodology using the Tornqvist index number approach. MFP was estimated in three different scenarios. In the first one, the basic growth-accounting methodology was used, without a measurement for land. In the second one, MFP was calculated with the Tornqvist index and without a measurement for land. In the third scenario, MFP was calculated with the Tornqvist method and with a measurement for land.
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