nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2011‒03‒19
twenty-six papers chosen by
Joao Jose de Matos Ferreira
University of the Beira Interior

  1. Virtual Collaborative R&D Teams in Malaysia Manufacturing SMEs By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
  2. Enviromental Innovations, Complementarity and Local/Global Cooperation By Giulio Cainelli; Massimiliano Mazzanti; Roberto Zoboli
  3. Environmental Performance, Innovation and Regional Spillovers By Massimiliano Mazzanti; Valeria Costantini; Anna Montini
  4. Environmental innovations, local networks and internationalization By Giulio Cainelli; Massimiliano Mazzanti; Sandro Montresor
  5. Economic Crisis, Innovation Strategies and Firm Performance. Evidence from Italian Firm-level Data By Massimiliano Mazzanti; Sandro Montresor; Davide Antonioli; Annaflavia Bianchi; Paolo Pini
  6. Globalisation, industrial diversification and productivity growth in large European R&D companies By Michele Cincera; Julien Ravet
  7. Motivations and determinants of technological innovations. A theoretical survey (In French) By Mohieddine Rahmouni (GREThA, CNRS, UMR 5113); Murat Yildizoglu (GREQAM, CNRS, UMR 6579)
  8. Innovation, Workers Skills and Industrial Relations: Empirical Evidence from Firm-level Italian Data. By Davide Antonioli; Paolo Pini; Rocco Manzalini
  9. Intangible Investment and the Swedish Manufacturing and Service Sector Paradox By Edquist, Harald
  10. Local Spillovers, Convexity and the Strategic Substitutes Property in Networks By Pascal Billand; Christophe Bravard; Sudipta Sarangi
  11. The impact of innovation brokers on interfirm network evolution By CARL KOCK; REMZI GOZUBUYUK
  12. Key Issues in the Assessment of Seta Performance in South Africa’s National Skills Development Strategy. By Sean Archer
  13. Embedding the drivers of emission efficiency at regional level Analyses of NAMEA data By Massimiliano Mazzanti; Anna Montini
  14. Entry and exit in a vertically differentiated industry By Silviano Esteve-Pérez
  15. Export Performance of China's Domestic Firms: the Role of Foreign Export Spillovers By Florian Mayneris; Sandra Poncet
  16. Equity judgments and context dependence: Knowledge, efficiency and incentives By Schilizzi, Steven
  17. Knowledge and Job Opportunities in a Gender Perspective: Insights from Italy By Angela Cipollone; Marcella Corsi; Carlo D'ippoliti
  18. Italian FDI integration with Southeast Europe: country and firm-level evidence By Eleonora Cutrini, Francesca Spigarelli
  19. Does foreign environmental policy influence domestic innovation ? Evidence from the wind industry By Antoine Dechezleprêtre; Matthieu Glachant
  20. Competitive Pressure and the Adoption of Complementary Innovations By Kretschmer, Tobias; Miravete, Eugenio J; Pernías, Jose C
  22. The Economic Efficiency of Swedish Higher Education Institutions By Daghbashyan, Zara
  23. Weight Restrictions in DEA:Misplaced Emphasis? By R. Førsund, Finn
  24. "Another Look at the Identification at Infinity of Sample Section Models" By Xavier d'Haultfoeuille ; Arnaud Maurel
  25. Aglomeración, Aprendizaje colectivo y transmisión de conocimiento: revisión de la literatura By Liliana Yaned Franco Vásquez
  26. Terminal units in DEA: Definition and Determination By Krivonozhko, Vladimir; R. Førsund, Finn; V. Lychev, Andrey

  1. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
    Abstract: This paper presents the results of empirical research conducted during March to September 2009. The study focused on the influence of virtual research and development (R&D) teams within Malaysian manufacturing small and medium sized enterprises (SMEs). The specific objective of the study is better understanding of the application of collaborative technologies in business, to find the effective factors to assist SMEs to remain competitive in the future. The paper stresses to find an answer for a question “Is there any relationship between company size, Internet connection facility and virtuality?”. The survey data shows SMEs are now technologically capable of performing the virtual collaborative team, but the infrastructure usage is less. SMEs now have the necessary technology to begin the implementation process of collaboration tools to reduce research and development (R&D) time, costs and increase productivity. So, the manager of R&D should take the potentials of virtual teams into account.
    Keywords: Small and medium enterprises; Collaborative tools; Questionnaires; Virtual teams
    JEL: O32 O14 M11 O43 Z0 L23 L15 O31 M21
    Date: 2010–11–11
  2. By: Giulio Cainelli; Massimiliano Mazzanti; Roberto Zoboli
    Abstract: This paper exploits a rich, new innovation based dataset of 555 industrial firms, located in the Emilia Romagna region in 2006-2008, to analyse complementarity in factors related to eco-innovation (EI) and to test the role of firm cooperation and internationally oriented strategies. EI is providing additional competitive advantage and is relevant to all EU industries. Results show that the degree of complementarity between various correlated EI factors is quite high, with networking and corporate social responsibility (CSR) playing dominant roles. It would seem that EIs do not undermine economic performance, either in the short run or in the context of the global financial crisis. Econometric analyses highlight that international characteristics, especially foreign ownership, and networking with other firms and institutions are important for EI adoption, while general research and development is less so. Over and above the structural features of firms, strategic relationships within regions and at the international level are relevant and differentiate innovative performance. Spots of a green dawn seem appearing from the historical 'brown' and polluting industrial setting of the region. Its brilliant economic performances could decouple if this improvement continues. This study provides and in depth regional investigation which could complement the information gathered in the last wave of the Community Innovation Survey which included questions on EI.
    Keywords: Eco-innovation; complementarity; local industrial systems; networking; international strategies
    JEL: C21 L60 O13 O30 Q20 Q58
    Date: 2011–02–01
  3. By: Massimiliano Mazzanti; Valeria Costantini; Anna Montini
    Abstract: The achievement of positive Environmental Performance (EP) at national level could strongly depend on differences in regional features, namely economic specialization, regulation stringency and innovation capabilities of both public institutions and the private business sector. We apply both shift-share and econometric analysis on a new NAMEA available for the 20 Italian Regions, in order to provide evidence of the role played by sector innovation, technological spillovers and regional policies in shaping the geographical distribution of EP. The Italian North-South divide regarding industrial development and productive specialisation patterns seems to affect regional EP. Nonetheless, such pattern presents some interesting differences, revealing a more heterogeneous distribution of emissions, which may reflect the role of other driving forces. In particular, agglomerative effects seem to prevail over purely internal factors - environmental efficiency of neighbouring regions strongly influence the internal EP. This means that together with the clustering of specific sectors into restricted areas as a standard result in regional economics, there is also some convergence in the adoption of cleaner or dirtier production process techniques. Finally, regional technological spillovers seem to play a more effective role in improving environmental efficiency than "sector internal innovation", revealing that accounting for spatial features is crucial to understand the key drivers of EP.
    Keywords: Environmental Performance; Technological Innovation; Regional Spillovers; regional NAMEA
    JEL: Q53 Q55 Q56 R15
    Date: 2011–01–05
  4. By: Giulio Cainelli; Massimiliano Mazzanti; Sandro Montresor
    Abstract: This paper investigates the drivers of the environmental innovations (EI) introduced by firms in local production systems (LPS). The role of firm network relationships, agglomeration economies and internationalization strategies is analysed for a sample of 555 firms in the Emilia-Romagna region, North-East of Italy. Cooperating with 'qualified' local actors - i.e. universities and suppliers - is the most important driver of EI for most firms, along with their training policies and IT innovations. The role of agglomeration economies is less clear and seems to depend on the EI propensity of more locally oriented firms playing in district areas, which might even turn agglomeration into dis-economies. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EI by multinational firms, thus highlighting the importance of local-global interactions. We provide some interesting findings for particular kinds of challenging EI in fields as CO2 abatement and ISO labelling, generally extending the analysis EI driver by joining local and international factors.
    Keywords: Eco-innovation; foreign ownership; networking; district; agglomeration economics; local production systems
    JEL: C21 L60 O13 O30 Q20 Q58 F23
    Date: 2011–01–03
  5. By: Massimiliano Mazzanti; Sandro Montresor; Davide Antonioli; Annaflavia Bianchi; Paolo Pini
    Abstract: Several empirical works have shown the robust and positive relation between growth and innovation at macroeconomic level and between firm economic performance and innovation at microeconomic level. However, the economists have had less opportunities to study such linkages during severe global downturns of the economic cycle. Moreover, the present disruptive economic downturn has forced the firms to implement survival strategies. One of such strategic behaviour regards the way of intervention on product and process areas through innovative actions. Focusing the attention on the micro level, the present work provides an empirical analysis on the basis of more than 500 Italian manufacturing firms located in Emilia-Romagna region, with the aim of disentangling the relations between pre-crisis innovation strategies and firm economic performance during the crisis as well as the linkages between the innovative actions taken to react to the recession's challenges and the economic performance in the recession. The results suggest the existence of strong relationships between past innovative activities and the capacity to react to the challenges brought by the crisis through innovative actions along product, process and organization/HRM dimensions, although the role of complementarities among past innovative activities does not emerge robustly. When the dependent variables are performance indicators the impact of pre-crisis innovation strategies emerges as robust for technological and organizational spheres, while intense innovative activities before the crisis on spheres like ICT, training and environment are detrimental for performances in the crisis. It seems that when the crisis hits those firms in a process of quite radical transformation and change, then the negative economic consequences of the recession are worse than in the case of firms on a more stable, less dynamic path.
    Keywords: innovation strategies; economic crisis; firm performance
    JEL: L1 L23 L6 O33
    Date: 2011–01–04
  6. By: Michele Cincera (Solvay Brussels School of Economics and Management, Université Libre de Bruxelles); Julien Ravet (Solvay Brussels School of Economics and Management, Université Libre de Bruxelles)
    Abstract: This paper aims to assess the impact of both geographic and industrial diversification of economic activities on the productivity performance of large European R&D Multinational Enterprises (MNEs). Based on the worldwide subsidiaries of these firms, we measure the performance of the firms according to their level of industrial diversification and globalisation that we proxy with the presence and importance of subsidiaries in the EU, North America and Asia-Pacific regions. The sample consists of large R&D firms that represent about 80% of total European R&D. In general, the results indicate a positive impact from globalisation on firms’ R&D productivity, especially in the US, while a negative impact for industrial diversification is found.
    Keywords: R&D; European MNEs; productivity; globalisation; industrial diversification
    JEL: O33
    Date: 2011–03
  7. By: Mohieddine Rahmouni (GREThA, CNRS, UMR 5113); Murat Yildizoglu (GREQAM, CNRS, UMR 6579)
    Abstract: The aim of this paper is to present the theoretical literature dedicated to the analysis of the motivations and the determinants of firms\' technological innovations. To this end, we follow a strategy of presentation that starts with the simplest possible framework in which the innovation can occur (Robinson Crusoe economy), and that encompasses gradually richer economic contexts. The discussion is hence organized in a progressive logic, ranging from purely individual motivations and conditions of innovations (in the case of Robinson, alone on his island), towards the more complex case where the innovative activities take place in an international framework, under particular institutional configurations, depending on the considered countries. The intermediate stages successively introduce the following economic phenomena: demand, sectoral dimensions, competition, public authorities, and finally, international competition.
    Keywords: Technological innovation, Industrial economics, Evolutionary economics
    JEL: O12 O30
    Date: 2011
  8. By: Davide Antonioli; Paolo Pini; Rocco Manzalini
    Abstract: The shifting of labour demand towards relatively more skilled workers has been a hot issue in the economic field for many years. A consolidated explanation for the upskilling phenomenon is that technological-organisational changes have driven the labour demand with detrimental consequences for less skilled workers (skill-biased technological-organisational change). In order to upgrade the skill workforce the firm has at least two main channels at its disposal: the external labour market strategy, mainly based on hiring and firing mechanisms; the internal labour market strategies, which improve the skill base of the employees through training activities. The main objective of the present work is to verify the relations between innovative strategies and both the workforce composition and the training activities, within an integrated framework that also leads us to consider the role of specific aspects of the industrial relations system. The firm level analysis is based on original datasets which include data on manufacturing firms for two Italian local production systems, located in the Emilia-Romagna region. The results suggest that the firms use both the two channels to improve their skill base, which is actually related to the innovation activities, although there is weak supporting evidence of the use of external labour markets to upgrade the workforce skills: the upskilling phenomenon seems to be associated to specific innovative activities in the technological sphere, while specific organisational aspects emerge as detrimental for blue collars. On the side of internal labour market strategies the evidence supports the hypothesis that innovation intensity induce the firms to implement internal procedures in order to upskill the workforce, confirming the importance of internal labour market strategies. Moreover, we have recognized the important role of firm level industrial relations in determining the training activities for the blue collar workers.
    Keywords: technological change; organisational change; industrial relations; skills
    JEL: J24 J53 L23 L6 O33
    Date: 2011–02–03
  9. By: Edquist, Harald (Research Institute of Industrial Economics (IFN))
    Abstract: Since the mid 1990s labor productivity growth in Sweden has been high compared to Japan, the US and the western EU-countries. While productivity growth has been rapid in manufacturing, it has been much slower in the service sector. Paradoxically, all employment growth since the mid 1990s has been created in business services. The two traditional explanations of this pattern are Baumol’s disease and outsourcing. This paper puts forward an additional explanation, based on the observation that manufacturing industries have invested heavily in intangible assets such as R&D and vocational training. In 2005–2006, intangible investment was 25 percent of value added in manufacturing, while the corresponding figure for the service sector was 11 percent. Moreover, calculations based on the growth accounting framework at the industry level in 2000–2006 show that intangible investment accounted for almost 30 percent of labor productivity growth in manufacturing. Thus, investments in intangibles that mostly are knowledge intensive services have contributed considerable to productivity growth in Swedish manufacturing since 1995.
    Keywords: Intangibles; Manufacturing; Productivity growth; Service sector; Sector analysis
    JEL: O14 O32 O33
    Date: 2011–02–11
  10. By: Pascal Billand (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon); Christophe Bravard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon); Sudipta Sarangi (Department of Economics, Louisiana State University - Department of Economics, Louisiana State University)
    Abstract: We provide existence results in a game with local spillovers where the payoff function satisfies both convexity and the strategic substitutes property. We show that there always exists a stable pairwise network in this game, and provide a condition which ensures the existence of pairwise equilibrium networks. Moreover, our existence proof allows us to characterize a pairwise equilibrium of these networks.
    Keywords: networks; existence; spillovers
    Date: 2011
  11. By: CARL KOCK (Instituto de Empresa); REMZI GOZUBUYUK (Instituto de Empresa)
    Abstract: In recent years, the development of the idea of “Open Innovationâ€(Chesbrough, 2004; 2006) lead to the emergence of “Innovation brokers†who connect those seeking for solutions with a rather large number of potential knowledge suppliers. In this paper we analyze the implication that the existence of such Innovation brokers has on other organizational interchanges firms may engage in. Specifically, we ask how the inter-organizational network of a particular firm evolves over time if they use an Innovation broker or not. Apart from contributing to both, network theory by shedding light on the evolution of network ties, and the innovation literature by adding to our understanding of how knowledg
  12. By: Sean Archer (SALDRU, School of Economics, University of Cape Town)
    Abstract: One of the most dangerous aspects of the global knowledge-based economy lies in the tensions created by the growing ‘knowledge gap’ between the knowledge-rich countries of the North and the (generally) knowledge-poor countries of the South. Wealth creates the ability to create the knowledge that can be used to create further wealth. But, without adequate means to distribute the benefits accruing from such knowledge, social disparities, and the jealousies they invoke, will only increase. Editorial, Nature 6714, 1999: 1.
    Date: 2010–10
  13. By: Massimiliano Mazzanti; Anna Montini
    Abstract: This paper provides new empirical evidence on regional-national disparities in environmental efficiency, based on analyses of NAMEA data referring to Italy and the Lazio region, where Rome is the main city. Shift-share analyses provide evidence on the drivers of environmental efficiency and on sector specificity. This confirms the usefulness of this method, in order to investigate structural and efficiency factors at the level of within country environmental efficiency performance. Our evidence shows that although the region around Rome has achieved higher environmental performance compared to Italy mainly thank to its being less industry based, some critical points in the energy sector and in some services should be taken into account in shaping the future development of the region. In addition, the use of regional NAMEA for econometric investigations of emission efficiency drivers at national level shows that though north south disparities favour northern and richer regions, in accordance with development oriented dynamics, environmental hot spots driven by specialization and efficiency related issues also appear in some northern industrial regions. Further, the role of public ad private R&D is of main relevance in enhancing emission on economic value ratios.
    Date: 2010–07–01
  14. By: Silviano Esteve-Pérez (University of Valencia)
    Abstract: This paper presents a duopoly model of firm rivalry in a vertically differentiated industry when market dynamics is explicitly accounted for. It shows how the interplay between demand (degree of product differentiation, demand elasticity) and cost (fixed and quality costs) factors determine firms' relative strength when quality is irreversible. The main strategic choices are product quality, price and the timing of entry and exit. Further, firms incur sunk quality costs at time of entry and operating fixed costs of maintaining quality. Although the low quality firm may outlast its rival in the declining phase, both firms wish to be the "quality leader".
    Keywords: Entry; Exit; Vertical product differentiation
    JEL: L13 L11
    Date: 2011–03
  15. By: Florian Mayneris; Sandra Poncet
    Abstract: We investigate how the creation of new export linkages (extensive margin of trade) by domestic firms in China is influenced by their proximity to multinational exporters. Using panel data from Chinese customs for 1997-2007, we show that there is evidence that domestic firms’ capacity to start exporting new varieties to new markets positively relates to the export performance of neighboring foreign firms for that same product-country pair. We find that foreign export spillovers are limited to ordinary trade activities. No foreign export spillovers are found for processing trade. More, export spillovers are stronger for sophisticated products indicating that proximity to foreign exporters may help domestic exporters to upgrade their exports. However we observe that foreign export spillovers are weaker when the technology gap between foreign and domestic firms is large, suggesting that upgrading may not occur in locations and sectors where foreign firms have already a strong edge.
    Keywords: Export performance; spillovers
    JEL: F1
    Date: 2010–12
  16. By: Schilizzi, Steven
    Abstract: Distributional equity concerns are often at least as important as economic efficiency and ecological sustainability in environmental and natural resource management policies. Until recently, however, economists have shied away from tackling equity issues, primarily because equity appeared as a slippery concept, varying across people and circumstances. This study takes this context-dependence of equity judgments as a starting point and shows that such dependence, far from being random, is systematic. A series of controlled laboratory treatments with University students were designed to investigate the role on distributional equity judgments of such context factors as knowledge of oneâs position in society, how the existence of equity-efficiency tradeoffs can affect equity judgments, and the importance of material incentives compared with hypothetical situations, where âin principleâ judgments are called for. Key results include the relative discriminating power of context factors, the hierarchy of context-dependence, the dissymmetry between support and opposition to equity principles, and the impact of different wealth endowments on equity judgments. A number of common beliefs are found not to be substantiated by our experimental findings.
    Keywords: Equity, fairness, resource allocation, environmental policy, experimental economics, welfare economics, public choice, Institutional and Behavioral Economics, Public Economics, C92, D03, D63, H23, Q56, Q58,
    Date: 2011–02–23
  17. By: Angela Cipollone (Department of Ecoomics and Business, LUISS University); Marcella Corsi (Sapienza University of Rome); Carlo D'ippoliti (Sapienza University of Rome)
    Abstract: This paper proposes a multidimensional concept of knowledge, encompassing several formal and informal skills to complement education and on-the-job training, under a gender perspective. By considering the case of Italy, we estimate the impact of such a concept of knowledge on men’s and women’s employment status and wages. Results point out that despite much rhetoric about the fact that women have gradually overcome men in terms of educational attainments, women still lack of the main skills and competencies that can profitably be used on the labor market. In Italy, women’s accumulation of labor market experience is mostly constrained by unpaid work and care work burdens. These activities may be regarded as a source of potential knowledge in terms of social and interpersonal skills, managerial and organizational capacities; but they do not seem to be positively valued by the market, either in terms of employability nor in terms of wages. Gender segregation in education seems to be still a relevant issue, by compressing both women’s employment chances and wages. Thus educational and cultural policies aimed at overcoming traditional gender roles and images among the younger students seem a very sensible policy option.
    Keywords: gender differentials, returns to knowledge, human capital.
    JEL: J24 J16 C43 J71 C14
    Date: 2011
  18. By: Eleonora Cutrini, Francesca Spigarelli (University of Macerata)
    Abstract: <div style="text-align: justify;">Southeast European countries have experienced significant economic integration into the world economy since 2000, through international capital flows and especially foreign direct investment (FDI). The present work sheds light on recent trends in Italy-Western Balkans economic integration through FDI. The methodology is based on a country level analysis and on case studies, designed to ascertain Italian firms’ underlying motives for investment in the area. Evidence suggests that the phenomenon is broader than official statistics would indicate: Italian firms often set up subsidiaries without formal or direct capital control. As integration in the area is a recent phenomenon, it is not surprising that the main determinants of Italian investments are cost reductions and new market opportunities, typical of initial stages of penetration in a foreign country. What is interesting in this context is that local entrepreneurs regard efficiency-seeking investments as profitable only if they are connected to market-seeking goals. We find evidence also of localized industrial development stimulated by the entry of Italian firms which is activating subcontracting relationships with existing firms in the host region.</div>
    Keywords: Southeast Europe-Italy integration,case study,foreign direct investment
    JEL: F21 F23 P20
    Date: 2011–03
  19. By: Antoine Dechezleprêtre (CERNA - Centre d'économie industrielle - Mines ParisTech, Grantham Research Institute on Climate Change and the Environment - London School of Economics and Political Science); Matthieu Glachant (CERNA - Centre d'économie industrielle - Mines ParisTech)
    Abstract: This paper examines the relative influence of domestic and foreign renewable energy policies on innovation activity in wind power using patent data from OECD countries from 1994 to 2005. We distinguish between the impact of demand-pull policies (e.g., guaranteed tariffs, investment and production tax credits), as reflected by wind power capacities installed annually, and technology-push policies (government support to R&D). We show that inventors respond to both domestic and foreign new capacities by increasing their innovation effort. However, the effect on innovation of the marginal wind turbine installed at home is 28 times stronger than that of the foreign marginal wind turbine. Unlike demandpull policies, public R&D expenditures only affect domestic inventors. A simple calculation suggests that the marginal million dollars spent on R&D support generates 0.82 new inventions, whereas the same amount spent on the deployment of wind turbines induces, at best, 0.06 new inventions (0.03 locally and 0.03 abroad).
    Keywords: innovation;public R&D;renewable energy policies;wind power
    Date: 2011
  20. By: Kretschmer, Tobias; Miravete, Eugenio J; Pernías, Jose C
    Abstract: Liberalization of the European automobile distribution system in 2002 limits the ability of manufacturers to impose vertical restraints, leading to a substantial increase in competitive pressure among dealers. We estimate an equilibrium model of profit maximization to evaluate how dealers change their innovation adoption strategies following the elimination of exclusive territories. Using French data we evaluate the existence of complementarities between the adoption of software applications and the scale of production. Firms view these innovations as substitutes and concentrate their effort in one type of software as they expand their scale of production. Results are robust to the existence of unobserved heterogeneity.
    Keywords: Competitive Pressure; Complementarity; Product and Process Innovation
    JEL: C35 L86 O31
    Date: 2011–03
  21. By: Lidia Mannarino; Valeria Pupo; Fernanda Ricotta (Dipartimento di Economia e Statistica, Università della Calabria)
    Abstract: Using Total Factor Productivity (TFP) as a measure of corporate performance, this study compares the performance of owner management to that of firms run by professional managers over the period 2004-2006. We consider the influence of owner management for the sample as a whole and for subgroups of firms. The findings demonstrate that family run firms are less productive than firms run by professional managers, but the difference between the two is small. Our results support the idea that in Italy there is not a genuine process of manager selection both for family and no-family firms.
    Keywords: TFP, Family firms, Management
    JEL: D24 G34
    Date: 2011–03
  22. By: Daghbashyan, Zara (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: The paper investigates the economic efficiency of higher education institutions (HEI) in Sweden to determine the factors that cause efficiency differences. Stochastic frontier analysis is utilized to estimate the economic efficiency of 30 HEI using both pooled and panel data approaches. HEI specific factors such as size, load, staff and student characteristics as well as government allocations are suggested to be the potential determinants of economic efficiency. The results suggest that HEI are not identical in their economic efficiency; though the average efficiency is high, they do perform differently. This variation is explained by the joint influence of HEI specific factors; the quality of labor is found to be highly significant for the cost efficiency of Swedish HEI.
    Keywords: Cost efficiency; Stochastic Frontier Analysis; Universities
    JEL: C21 C24 I21
    Date: 2011–03–11
  23. By: R. Førsund, Finn (Dept. of Economics, University of Oslo)
    Abstract: Measuring productive efficiency is an important research strand within fields of economics, management science and operations research. One definition of efficiency is the proportional scaling needed for observations of an inefficient unit to be projected onto an efficient production function and another definition is a ratio index of weighted outputs on weighted inputs. When linear programming is used to estimate efficiency the two definitions give identical results due to the fundamental duality of linear programming. Empirical applications of DEA using linear programming showed a prevalence of zero weights leading to questioning the consequence for the efficiency score estimate based on the ratio definition. Early literature on weight restrictions is exclusively based on the ratio efficiency. It was stated that variables with zero weights had no influence on the efficiency score, in spite of the alleged importance of the variables. This has been one motivation for introducing restrictions on weights. Another empirical result was that often there were too many efficient units. This problem could also be overcome by introducing weight restrictions. Weight restrictions were said to introduce values for inputs and outputs. The paper makes a critical examinations of these claims based on defining efficiency relative to a frontier production function.
    Keywords: Weight restrictions; DEA; efficiency; frontier production function; primal and dual linear programming problems
    JEL: C61 D20
    Date: 2011–02–17
  24. By: Xavier d'Haultfoeuille ; Arnaud Maurel (Crest)
    Abstract: It is often believed that without instrument, endogenous sample selection models are identified only if a covariate with a large support is available (see Chamberlain, 1986, and Lewbel, 2007). We propose a new identification strategy mainly based on the condition that the selection variable becomes independent of the covariates when the outcome, not one of the covariates, tends to infinity. No large support on the covariates is required. Moreover, we prove that this condition is testable. We finally show that our strategy can be applied to the identification of generalized Roy models.
    Keywords: optimal matching
    Date: 2010–10
  25. By: Liliana Yaned Franco Vásquez
    Abstract: Existe una extensa literatura que pone su atención en los derrames de conocimiento como determinantes externos de la capacidad de innovación de las empresas. Estos derrames están asociados a las externalidades positivas que se reciben del entorno en materia de conocimiento; las cuales podrían ser tecnológicas (efectos de propagación del conocimiento disponible para todo el mundo) o pecuniarias (asociadas a la concentración del conocimiento en unas determinadas redes, en las que intervienen trabajadores, proveedores, infraestructuras e instituciones especializadas). Tanto los economistas industriales como los regionales destacan la importancia de dichos desbordamientos. Sin embargo, existen diferencias importantes entre estos dos grupos; mientras para el primero, el mero contacto cara a cara explica la transferencia de conocimiento a nivel local; para los economistas regionales son clave los procesos socializados de creación del mismo.
    Date: 2011–03–06
  26. By: Krivonozhko, Vladimir (Institute for Systems Analysis, Russian Academy of Sciences, Moscow); R. Førsund, Finn (Dept. of Economics, University of Oslo); V. Lychev, Andrey (Accounts Chamber of the Russian Federation, Moscow)
    Abstract: Applications of the DEA models show that inadequate results may arise in some cases, two of these inadequacies being: a) too many efficient units may appear in some DEA models; b) a DEA model may show an inefficient unit from the point of view of experts as an efficient one. The purpose of this paper is to identify units that may unduly become efficient. The concept of a terminal unit is introduced for such units. A method for improving the adequacy of DEA models based on terminal units is suggested, and an example shown based on a real-life data set for Russian banks.
    Keywords: Terminal units; DEA; Efficiency; Weight restrictions; Domination cones
    JEL: C44 C61 C67 D24
    Date: 2011–02–17

This nep-cse issue is ©2011 by Joao Jose de Matos Ferreira. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.