New Economics Papers
on Efficiency and Productivity
Issue of 2006‒06‒17
nine papers chosen by

  1. Performance Measurement in the Australian Water Supply Industry By Tim Coelli; Shannon Walding
  2. Editing and multiply imputing German establishment panel data to estimate stochastic production frontier models By Kölling, Arnd; Rässler, Susanne
  3. Geographic and technological spillovers within the triad: micro evidence from US patents By Luigi Aldieri; Michele Cincera
  4. Innovativity: A Comparison Across Seven European Countries By Pierre Mohnen; Jacques Mairesse; Marcel Dagenais
  5. Effects of Foreign Presence in a Transition Economy : Regional and Industry-Wide Investments and Firm-Level Exports in Ukrainian Manufacturing By Stefan Lutz; Oleksandr Talavera; Sang-Min Park
  6. Measuring Efficiency externalities from Trade and Alternative Forms of Foreign Investment By Krishna G. Iyer; Alicia N. Rambaldi; Kam Ki Tang
  7. Are North-South Technological Spillovers Substantial? : A Dynamic Panel Data Model Estimation By Wamea, Watu
  8. Where have all the data gone? : stochastic production frontiers with multiply imputed German establishment data By Jensen, Uwe; Rässler, Susanne
  9. A Frontier Approach to Testing the Averch-Johnson Hypothesis By Donald F. Vitaliano; Gregory Stella

  1. By: Tim Coelli; Shannon Walding (CEPA - School of Economics, The University of Queensland)
    Abstract: Various government-owned businesses provide water supply services to Australian residents. With the advent of recent competition and regulatory reforms in infrastructure industries in Australia, more and more of these businesses are now facing new types of incentive-based regulatory regimes. This has led to a desire for more information on the performance of these businesses, both relative to each other and over time. In this study we use panel data on the 18 largest Australian water services businesses, observed over an eight-year period from 1995/6 to 2002/3, to measure the relative efficiency and productivity growth of these businesses. Data envelopment analysis (DEA) methods are used to obtain estimates of the multi-input, multi-output production technology. The potential use of these performance measures in price-cap regulation is discussed, where the effects of variable selection and data quality upon empirical results is emphasised.
    Date: 2005–06
  2. By: Kölling, Arnd; Rässler, Susanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "This paper illustrates the effects of item-nonresponse in surveys on the results of multivariate statistical analysis when estimation of productivity is the task. To multiply impute the missing data a data augmentation algorithm based on a normal/Wishart model is applied. Data of the German IAB Establishment Panel from waves 2000 and 2001 are used to estimate the establishment’s productivity. The processes of constructing, editing, and transforming the variables needed for the analyst’s as well as the imputer’s models are described. It is shown that standard multiple imputation techniques can be used to estimate sophisticated econometric models from large-scale panel data exposed to item-nonresponse. Basis of the empirical analysis is a stochastic production frontier model with labour and capital as input factors. The results show that a model of technical inefficiency is favoured compared to a case where we assume different production functions in East and West Germany. Also we see that the effect of regional setting on technical inefficiency increases when inference is based on multiply imputed data sets. This could have influence on the economic and regional policies in Germany in the future." (author's abstract, IAB-Doku) ((en))
    Keywords: IAB-Betriebspanel, multivariate Analyse, Datenanalyse, Befragung, Unternehmen, Antwortverhalten, statistische Methode, Schätzung, regionale Disparität, Ökonometrie - Modell, technischer Fortschritt, Produktivität, Markov-Ketten, Monte-Carlo-Methode, Ostdeutschland, Westdeutschland, Bundesrepublik Deutschland
    JEL: C15 C81 D24
    Date: 2004–10–07
  3. By: Luigi Aldieri (Università degli Studi di Napoli "Parthenope", Naples & DULBEA-CERT, Université libre de Bruxelles, Brussels.); Michele Cincera (DULBEA-CERT, Université libre de Bruxelles, Brussels, and CEPR)
    Abstract: This paper aims at assessing the magnitude of R&D spillover effects on large international R&D companies’ productivity growth. In particular, we investigate the extent to which R&D spillover effects are intensified by both geographic and technological proximities between spillover generating and receiving firms. We also control for the firm’s ability to identify, assimilate and absorb the external knowledge stock. The results estimated by means of panel data econometric methods (system GMM) indicate a positive and significant impact of both types of R&D spillovers and of absorptive capacity on productivity performance.
    Keywords: Geographic and technological R&D spillovers, absorptive capacity, firms’ productivity growth.
    JEL: O33 O47
    Date: 2006–05
  4. By: Pierre Mohnen; Jacques Mairesse; Marcel Dagenais
    Abstract: This paper proposes a framework to account for innovation similar to the usual accounting framework in production analysis and a measure of innovativity comparable to that of total factor productivity. This innovation accounting framework is illustrated using micro-aggregated firm data from the first Community Innovation Surveys (CIS1) for seven European countries: Belgium, Denmark, Ireland, Germany, the Netherlands, Norway and Italy for the year 1992. Based on the estimation of a generalized Tobit model and measuring innovation as the share of total sales due to improved or new products, it compares the propensity to innovate, and the innovation intensity conditional and unconditional on being innovative, across the seven countries and low- and high-tech manufacturing sectors. Even with relatively few explanatory variables our innovation framework already accounts for sizeable differences in country innovation intensity. It also shows that differences in innovativity across countries can be nonetheless very large.
    JEL: C35 L60 O31 O33
    Date: 2006–06
  5. By: Stefan Lutz; Oleksandr Talavera; Sang-Min Park
    Abstract: We investigate the effects of regional and industry-wide foreign presence and foreign direct investment (FDI) on export volumes of Ukrainian manufacturing firms using unpublished panel data from 1996-2000. Foreign presence through FDI may have negative competition effects on domestic firms' performance while, at the same time, domestic firms' productivity may be increased by technology transfer or through training and demonstration effects. From a Cournot competition model including negative competition and positive technology-spillover effects, we derive the hypotheses that foreign presence and foreign investment might positively affect domestic firms' output and exports. Our estimation results support these hy-potheses and suggest in particular that large firms and durable-goods producers benefit most from foreign presence and investments.
    Keywords: transition, foreign direct investment, spillovers, firm performance.
    JEL: F14 F23 L60
    Date: 2006
  6. By: Krishna G. Iyer; Alicia N. Rambaldi; Kam Ki Tang (CEPA - School of Economics, The University of Queensland)
    Abstract: The literature has concentrated on evaluating technological spillovers from trade and inflows of foreign direct investment (FDI). Little effort has been directed towards identifying efficiency externalities arising from international linkages. We evaluate these for a sample of 20 OECD countries between 1982 and 2000 using a stochastic frontier approach. The analysis includes trade, inflows and outflows of FDI, foreign portfolio investment (FPI), and other foreign investment (OFI), and a measure of the absorptive capacities of host economies. We find trade and all foreign investment inflows to lead to increased efficiency. Outflows of FDI are found to exacerbate inefficiency.
    Date: 2005–06
  7. By: Wamea, Watu (CEDERS, Faculté des Sciences Economique et Gestion, Université de la Méditerranée)
    Abstract: This paper argues that actual technological spillovers are not substantial in developing countries because of the absence of an absorptive capacity. We carry out a panel data analysis in an attempt to gain insight into the specific aspects that enable economies to benefit from the backlog of existing knowledge. Our findings indicate that low productivity effects of human capital coupled with weak or virtually inexistent systems of innovation are at the root of the observed ambiguity with regard to the spillovers gains that are expected to play a significant role in sparking growth.
    Keywords: absorptive capacity, spillovers, developing countries, systems of innovation
    JEL: C33 O47 O57
    Date: 2006
  8. By: Jensen, Uwe; Rässler, Susanne (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "In this paper, stochastic production frontier models are estimated with IAB establishment data from waves 2002 and 2003 to find important determinants of productivity and ineffciency. The data suffer from nonresponse in the most important variables (output, capital and labor) leading to the loss of 25 % of the observations and possibly imprecise estimates and invalid test statistics. Therefore, the missing values are multiply imputed. Analyzes of the estimation results show that, particularly in the ineffciency submodel, working with multiply imputed data reveals some interesting and plausible results which are not available when ignoring missing observations." (author's abstract, IAB-Doku) ((en))
    Keywords: IAB-Betriebspanel, Schätzung, Fehler, Datenaufbereitung, angewandte Statistik
    JEL: C15 C24 C81 D24
    Date: 2005–07–26
  9. By: Donald F. Vitaliano (Department of Economics, Rensselaer Polytechnic Institute, Troy NY 12180-3590, USA); Gregory Stella (New York State Public Service Commission)
    Abstract: Averch and Johnson hypothesized that regulated utilities would inefficiently overinvest in capital because regulators permitted them to earn a return greater than the cost of capital. This paper uses Data Envelopment Analysis (DEA) to test this hypothesis with data from 337 steam-electric generating plants. A best practice cost and production frontier using generating and structure capital, fuel and labor is constructed using DEA. The cost of capital is based on the Capital Asset pricing model. Inefficient overuse of capital is found. But there is no significant link between overuse of capital and the return earned by each utility.
    JEL: L94 C61 D61
    Date: 2006–06

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