New Economics Papers
on Efficiency and Productivity
Issue of 2006‒03‒05
eleven papers chosen by

  1. Australian Banking Efficiency and its Relation to Stock Returns By Joshua Kirkwood; Daehoon Nahm
  2. Long-Run Productivity Shifts and Cyclical Fluctuations: Evidence for Italy By Silvia Sgherri
  3. Service Offshoring, Productivity, and Employment: Evidence from the United States By Mary Amiti; Shang-Jin Wei
  4. Estimation of Cost Efficiency of Australian Universities By Jocelyn Horne; Baiding Hu
  5. Sustaining Growth Accelerations and Pro-Poor Growth in Africa By Kevin Joseph Carey; Sanjeev Gupta; Catherine A. Pattillo
  6. Determinants of profitability of domestic UK commercial banks: panel evidence from the period 1995-2002 By Sailesh Tanna; Kyriaki Kosmidou; Fotios Pasiouras
  7. Input Specificity and Global Sourcing By Galina A. Schwartz; Ari Van Assche
  8. Efficiency of European Banking - Inequality and Integration By Marina Tomova
  9. Bank Ownership and Performance Does Politics Matter? By Micco, Alejandro; Panizza, Ugo; Yañez, Monica
  10. Identifying "Problem Banks" in the German Co-operative and Savings Bank Sector: An Econometric Analysis By Klaus Schaeck; Simon Wolfe
  11. Bank Efficiency and Competition in Low-Income Countries: The Case of Uganda By David Hauner; Shanaka J. Peiris

  1. By: Joshua Kirkwood (Reserve Bank of Australia); Daehoon Nahm (Department of Economics, Macquarie University)
    Abstract: This paper considers cost and profit efficiency for Australian banks between 1995 and 2002. Data Envelopment Analysis (DEA) is used to construct an efficient frontier for ten banks listed on the Australian Stock Exchange. Empirical results indicate the major banks have improved their cost and profit efficiency, while the regional banks have experienced little change in cost efficiency, and a decline in profit efficiency. This result provides interesting insights into the structure of the Australian banking industry. Malmquist indices indicate technological change is the dominant source of improvements in total factor productivity over the period. An attempt is made to relate the changes in efficiency to stock returns, using a method superior to that previously adopted. Results indicate that for our sample changes in firm efficiency are reflected in stock returns.
    Keywords: DEA, Banks, Profit Efficiency, Cost Efficiency
    JEL: G14 G21 D24
    Date: 2005–05
  2. By: Silvia Sgherri
    Keywords: Productivity , Italy , Business cycles , Economic models ,
    Date: 2005–12–21
  3. By: Mary Amiti; Shang-Jin Wei
    Keywords: Productivity , United States , Employment , Labor , Manufacturing sector , Economic models ,
    Date: 2005–12–30
  4. By: Jocelyn Horne (Department of Economics, Macquarie University); Baiding Hu (Department of Economics, Macquarie University)
    Abstract: The purpose of this paper is to quantify the efficiency with which Australian universities utilise their teaching resources. The study estimates the cost efficiency of 36 universities over the period 1995-2002 using stochastic frontier analysis. The present study differs from previous cost and efficiency studies of Australian universities in two respects. First, it employs stochastic frontier analysis for the specification of a cost function for Australian universities which allows for the estimation of cost efficiency for each university under study. Second, a panel data set is utilised in the estimation of the cost function which enables not only comparisons of cost efficiency between universities but also an econometric testing of the assumption of an identical cost function for every university. The main finding is that universities are not operating efficiently as measured by cost efficiency and in relative terms. An efficiency ranking is derived and policy inferences are discussed.
    Keywords: Cost efficiency, stochastic frontier analysis, higher education
    JEL: C23 I20
    Date: 2005–03
  5. By: Kevin Joseph Carey; Sanjeev Gupta; Catherine A. Pattillo
    Keywords: Poverty reduction , Sub-Saharan Africa , Economic growth , Productivity , Trade ,
    Date: 2005–10–19
  6. By: Sailesh Tanna (Coventry Business School); Kyriaki Kosmidou (Technical University of Crete and University of Crete); Fotios Pasiouras (Technical University of Crete and Coventry Business School)
    Date: 2005–09–03
  7. By: Galina A. Schwartz; Ari Van Assche
    Abstract: This paper investigates the role of productivity on a firm’s organizational choice. We expand Antràs and Helpman (2004) by allowing heterogeneous firms to choose between adopting specific and generic inputs. In input-intensive industries, firms face a trade-off between the lower productivity of generic inputs and the reduced hold-up friction of generic outsourcing. We demonstrate that the hold-up friction under generic outsourcing increases with a firm’s productivity. This implies that: (i) high productivity firms choose ideal outsourcing to the South, (ii) medium productivity firms choose generic outsourcing to the South, (iii) low productivity firms choose generic outsourcing to the North. <P>Cet article étudie le rôle de la productivité sur les choix organisationnels des entreprises. Nous élargissons l’étude d’Antràs et Helpman (2004) en permettant aux entreprises hétérogènes de choisir entre l’adoption d’intrants spécifiques ou génériques. Au sein des industries caractérisées par une forte utilisation d’intrants, les entreprises font face à un compromis entre une productivité réduite liée aux intrants génériques et un problème de hold-up moindre découlant de l’impartition générique. Nous démontrons que le problème de hold-up lié à l’impartition générique augmente selon la productivité d’une entreprise. Ce qui implique que : les entreprises dont le taux de productivité est élevé choisissent l’impartition optimale au Sud, (ii) les entreprises dont le taux de productivité est moyen choisissent l’impartition générique au Sud, (iii) les entreprises dont le taux de productivité est bas choisissent l’impartition générique au Nord.
    Keywords: input specificity, outsourcing, firm heterogeneity, incomplete contracts, hold-up problem, spécificité des intrants, impartition, hétérogénéité des entreprises, incomplétude des contrats, problèmes de hold-up.
    JEL: F23 F12
    Date: 2006–02–01
  8. By: Marina Tomova (University of National and World Economy)
    Date: 2005–09–03
  9. By: Micco, Alejandro; Panizza, Ugo; Yañez, Monica
    Abstract: This paper uses a new dataset to reassess the relationship between bank ownership and bank performance, providing separate estimations for developing and industrial countries. It finds that state-owned banks located in developing countries tend to have lower profitability and higher costs than their private counterparts, and that the opposite is true for foreign-owned banks. The paper finds no strong correlation between ownership and performance for banks located in industrial countries. Next, in order to test whether the differential in performance between public and private banks is driven by political considerations, the paper checks whether this differential widens during election years; it finds strong support for this hypothesis.
    Keywords: Banking; Privatization; Ownership; Performance
    JEL: G21 D21
    Date: 2006–02
  10. By: Klaus Schaeck (University of Southampton); Simon Wolfe
    Date: 2005–09–03
  11. By: David Hauner; Shanaka J. Peiris
    Date: 2006–01–09

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