Comparing Luenberger and Luenberger-Hicks-Moorsteen productivity indicators: How well is total factor productivity approximated?

We empirically compare both the popular Luenberger indicator with the less popular Luenberger-Hicks–Moorsteen productivity indicator on an agricultural panel data set of Chinese provinces over the years 1997–2014. In particular, we test for the differences in distribution when comparing these indicators. These tests are crucial to answer the question to which extent the Luenberger indicator can approximate the Luenberger-Hicks–Moorsteen productivity indicator that has a Total Factor Productivity (TFP) interpretation. (This abstract was borrowed from another version of this item.)