The problems with structural decomposition analysis

• Autores: María Angeles Cadarso Vecina
• Localización: Documentos de Trabajo ( Universidad de Castilla La Mancha. Facultad de Ciencias Económicas y Empresariales ), Serie 1, Nº. 4, 1999, 29 págs.
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • We point out in this paper, first, that the problem of non-uniqueness in structural decomposition techniques has two sources: the different weights in the different decomposition forms and also the different number of determinants included in the additive decomposition. Second, that the 'joint effect' should be considered if one would like to avoid with the index problem and to have the same and more meaningfull type of weight for the exogenous changes. Third, to continue a discussion about the 'joint effect', which has not been concluded up to now, seeking its sense and eliminating the notion that the joint effect is an error or that it is the outcome of an incomplete decomposition. In the final part of this paper, a decomposition analysis is carried out breaking down the change in system labour productivity into the productivity change of each sector for the Spanish economy. Some conclusions on the meaning of the joint-effect are also drawed.