In this paper we account for observed management practice in the estimation of aproduction function. In our model … management practice is observable and we allow it toaffect output directly (neutral shift) and indirectly by affecting input … (in)efficiency do not correlate highly with observedmanagement. We also find that management affects output both directly …

We propose a model of production where technical change is both time and management induced. We define a general … management index in addition to the general time index of Baltagi and Griffin (1988) and use them as arguments in the translog … productionfunction. Time and management induced technical change are then defined interms of these general indices. For comparison, we …