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on Efficiency and Productivity |
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Issue of 2005‒01‒16
three papers chosen by |
| By: | Frederik Huizinga; Peter Broer |
| Abstract: | In the Dutch economic policy debate, wage moderation is widely considered as a key factor for achieving economic growth and low unemployment. However, some economists criticise the policy emphasis on wage moderation, claiming that high wages are needed to maintain structural labour productivity growth. This paper analyses the effects of a wage push on labour productivity within the framework of endogenous technological progress, endogenous technology adoption and insufficient competition. <P> The conclusion is that a wage push raises labour productivity in the short run. However, this rise in labour productivity is temporary and inefficient. In the long run, a wage push may well harm labour productivity. <P> The main message of the paper is that it is probably best not to use wage policy at all as a tool to influence productivity. As a tool against unemployment, however, it is very effective. These insights are applied in a review of the Dutch post-war productivity growth. |
| Keywords: | wage moderation; productivity; technological progress; creative destruction |
| JEL: | J23 J24 O33 |
| Date: | 2004–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:28&r=eff |
| By: | Jacob Bikker; Jaap Bos |
| Abstract: | This paper brings to the forefront the assumptions that we make when focussingon a particular type of explanation for bank profitability. We evaluate a broad field of research by introducing a general framework for a profit maximizing bank and demonstrate how different types of models can be fitted into this framework. Next, we present an overview of the current major trends in European banking and relate them to each model's assumptions, thereby shedding light on the relevance, timeliness and shelf life of the different models. This way, we arrive at a set of recommendations for a future research agenda. We advocate a more prominent role for output prices, and suggest a modification of the intermediation approach. We also suggest ways to more clearly distinguish between market power and effciency, and explain why we need time-dependent models. Finally, we propose the application of existing models to different size classes and sub-markets. Throughout we emphasize the benefits from applying several, complementary models to overcome the identification problems that we observe in individual models. |
| JEL: | G21 L11 L22 L23 |
| Date: | 2004–11 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:018&r=eff |
| By: | Toshiyuki Matsuura; Kazuyuki Motohashi |
| Abstract: | This study is a first attempt of shedding a light on market dynamics in Japanese retail industry at establishment level using micro dataset from census survey. Entry and exit of establishment and its impact on productivity is investigated by using Retail and Wholesale Census by METI in 1997 and 2002. It is found that a substantial number of gross turn over of establishments, as well as employment reallocation associated with it. This market dynamics of retail industry contributes to aggregated productivity growth. |
| Date: | 2005–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:05001&r=eff |