New Economics Papers
on Efficiency and Productivity
Issue of 2006‒11‒18
25 papers chosen by

  1. Parametric Decomposition of the Input-Oriented Malmquist Productivity Index: With an Application to Greek Aquaculture By Christos Pantzios; Vangelis Tzouvelekas; Giannis Karagiannis
  2. The Structural Transformation and Aggregate Productivity in Portugal By Margarida Duarte; Diego Restuccia
  3. Technical and Allocative Efficiency in European Banking By Sophocles N. Brissimis; Matthaios D. Delis; Efthymios G. Tsionas
  4. Efficiency and Productivity of Italian Tourist Destinations: A Quantitative Estimation based on Data Envelopment Analysis and the Malmquist Method By Maria Francesca Cracolici; Peter Nijkamp
  5. Assessment of Tourist Competitiveness by analysing Destination Efficiency By Francesca Cracolici; Piet Rietveld; Peter Nijkamp
  6. PARAMETRIC DECOMPOSITION OF OUTPUT GROWTH By Giannis Karagiannis; Peter Midmore; Vangelis Tzouvelekas
  8. The Growing Allocative Inefficiency of the U.S. Higher Education Sector By James D. Adams; J. Roger Clemmons
  9. Efficiency in Damage Control Inputs: A Stochastic Production Frontier Approach By Giannis Karagiannis; Efthymios Tsionas; Vangelis Tzouvelekas
  10. Exploratory Spatial Data Analysis and Spatial Econometric Modeling for the study of Regional Productivity Differentials in European Union, from 1975 to 2000 By Yiannis Kamarianakis; Julie Le Gallo
  11. Agglomeration Economies in Japan: Technical Efficiency, Growth and Unemployment By Mitra, Arup; Sato, Hajime
  12. Explaining Output Growth of Sheep Farms in Greece: A Parametric Primal Approach By Giannis Karagiannis; Vangelis Tzouvelekas
  13. What drives productivity in Tanzanian manufacturing firms: technology or institutions? By Goedhuys, Micheline; Janz, Norbert; Mohnen, Pierre
  14. The stability of efficiency rankings when risk-preferences and objectives are different By Koetter, Michael
  15. The role of new technologies in the economic growth of Andalucia By Diego Martínez López; Jesús Rodríguez López
  16. A Flexible Time-Varying Specification of the Technical Inefficiency Effects Model By Giannis Karagiannis; Vangelis Tzouvelekas
  17. Human Resource Management Technology Diffusion Through Global Supply Chains: Productivity and Workplace Based Health Care By Drusilla K. Brown; Thomas Downes; Karen Eggleston; Ratna Kumari
  18. Evaluating the Impact of Public and Private Agricultural Extension on Farms Performance: A Non-neutral Stochastic Frontier Approach By Ariel Dinar; Giannis Karagiannis; Vangelis Tzouvelekas
  19. Regional Integration Challenges in South East Europe: Banking Sector Trends By George Stubos; Ioannis Tsikripis
  20. Efficiency and environmental regulation: a "complex situation" By Andrés J. Picazo-Tadeo; Diego Prior
  21. Corporate Ownership Structure and Firm Performance: Evidence from Greek Firms By Panayotis Kapopoulos; Sophia Lazaretou
  22. Corporate governance in banking: The role of Board of Directors By Pablo de Andres Alonso; Eleuterio Vallelado Gonzalez
  23. Does Corporate Ownership Structure Matter for Economic Growth? A Cross-Country Analysis By Panayotis Kapopoulos; Sophia Lazaretou
  24. Determinants of Bank Profitability in the South Eastern European Region By Panayiotis P. Athanasoglou; Matthaios D. Delis; Christos K. Staikouras
  25. Public infrastructure and growth : new channels and policy implications By Agenor, Pierre-Richard; Moreno-Dodson, Blanca

  1. By: Christos Pantzios; Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece); Giannis Karagiannis (Department of Economics, University of Macedonia, Greece)
    Abstract: Using a stochastic frontier approach and a tranlog input distance function, this paper implements the input-oriented Malmquist productivity index to a sample of Greek aquaculture farms. It is decomposed into the effects of technical efficiency change, scale efficiency change, input-mix and, technical change, which is further attributed to neutral, output- and input-induced shifts of the frontier. Implementable expressions for the aforementioned components are obtained using a discrete changes-approach that is consistent with the usual discrete-form data. Empirical findings indicate that the productivity of the farms in the sample increased during the period 1995-99 at a moderate rate of about two percent, and it was shaped up primarily by the input mix-effect and technical change.
    Keywords: Malmquist productivity index; stochastic input distance function; Greek aquaculture farms
    Date: 2005
  2. By: Margarida Duarte; Diego Restuccia
    Abstract: We document the substantial process of structural transformation -the reallocation of labor between agriculture, manufacturing, and services- and aggregate productivity growth undergone by Portugal between 1956 and 1995. In this paper, we assess the quantitative role of sectoral productivity in accounting for these processes. We calibrate a model of the structural transformation to data for the United States and use the model to gain insight into the factors driving the structural transformation and aggregate productivity growth in Portugal. The model implies that Portugal features low and roughly constant relative productivity in agriculture and services (around 22 percent) and a modest but growing relative productivity in manufacturing (from 44 to 110 percent). We find that productivity growth in manufacturing accounts for most of the reduction of the aggregate productivity gap with the United States and that further substantial improvements in relative aggregate productivity can only be accomplished via improvements in the relative productivity of the service sector.
    Keywords: productivity, structural transformation, relative sectoral productivity.
    JEL: O1 O4
    Date: 2006–11–13
  3. By: Sophocles N. Brissimis (Bank of Greece, Economic Research Department and University of Piraeus); Matthaios D. Delis (Athens University of Economics and Business); Efthymios G. Tsionas (Athens University of Economics and Business)
    Abstract: This paper specifies an empirical framework for estimating both technical and allocative efficiency, which is applied to a large panel of European banks over the years 1996 to 2003. Our methodology allows for self-consistent measurement of technical and allocative inefficiency, in an effort to address the issue known in the literature as the Greene problem. The results suggest that, on average, European banks exhibit constant returns to scale, that technical and allocative efficiency are close to 80% and 75% respectively, and that overall economic efficiency shows a clearly improving trend. We also show through the comparison of various estimators that models incorporating only technical efficiency tend to overestimate it.
    Keywords: Technical and allocative efficiency; Translog cost function; Maximum likelihood; European banking
    JEL: C13 G21 L2
    Date: 2006–09
  4. By: Maria Francesca Cracolici (University of Palermo, Italy); Peter Nijkamp (Vrije Universiteit Amsterdam)
    Abstract: This paper aims to provide a statistical analysis of the relative economic performance of Italian tourist areas. It uses two modelling approaches to estimate the competitiveness of these regions, viz. data envelopment analysis (DEA) and the Malmquist method. Our results show that the competitiveness position of several Italian regions has not improved over the years under consideration.
    Keywords: competitiveness; Italian tourist industry; envelopment analysis
    JEL: L83
    Date: 2006–10–30
  5. By: Francesca Cracolici (University of Palermo, Italy); Piet Rietveld (Vrije Universiteit Amsterdam); Peter Nijkamp (Vrije Universiteit Amsterdam)
    Abstract: Recently the notion and the measurement of destination competitiveness have received increasing attention in the economics literature on tourism. The reason for this interest emerges from both the increasing economic importance of the tourist sector and the increasing competition on the tourist market as a consequence of the transition from mass tourism to a new age of tourism that calls for a tailor-made approach to the specific attitudes and needs of tourists. The central subject of this paper – inspired by the conceptual competitiveness model developed earlier by Crouch and Ritchie – concerns the efficiency of tourist site destinations. Using a dataset of 103 Italian regions for the year 2001, an economic efficiency analysis based on a production frontier approach has been made in the present study. The study deploys a measure of tourist site competitiveness in terms of its technical efficiency using parametric and non-parametric methods, a stochastic production function and data envelopment analysis, respectively.
    Keywords: competitiveness; Italian tourist industry; envelopment analysis
    JEL: L83
    Date: 2006–10–30
  6. By: Giannis Karagiannis (Department of Economics, University of Macedonia, Greece); Peter Midmore (Institute of Rural Studies, The University of Wales, UK); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: This paper proposes a tractable approach for analyzing the sources of TFP changes (i.e., technical change, changes in technical and allocative inefficiency, and the scale effect) in a multi-output setting, while retaining the single-equation nature of the econometric procedure used to estimate the parameters of the underlying technology. The proposed approach relies on Bauer’s cost function based decomposition of TFP changes and the duality between input distance and cost functions. The empirical results are based on a sample of 121 UK livestock farms observed over the period 1983-92 and a translog input distance function. It is found that improvements in technical efficiency appear to provide greater potential for enhancing farm returns than that which may be obtained from shifting the production frontier itself. In addition, scale economies and allocative inefficiency are also important sources for TFP changes on UK livestock farms.
    Keywords: Cost function based decomposition of TFP, input distance function; UK livestock farms
  7. By: Giannis Karagiannis (Department of Economics, University of Macedonia, Greece); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: This paper extends the primal decomposition of TFP changes to the case of non-neutral production frontiers. Output growth is decomposed into input growth (size effect), changes in technical efficiency, technical change, and the effect of returns to scale. Within the proposed formulation, however, technical efficiency changes are attributed not only to autonomous changes (i.e., passage of time) but also to changes in input use and in the not-so-fixed farm characteristics. The empirical model is based on a heteroscedastic non-neutral production frontier and an unbalanced panel data set of sheep farms in Greece for the period 1989-92. The technical efficiency change effect is found to be the main source of TFP growth, followed by technical change and the scale effect, which has caused a 0.35% output slowdown The not-so-fixed farm characteristics have been the most important determinant of technical efficiency changes, followed by changes in input use.
  8. By: James D. Adams; J. Roger Clemmons
    Abstract: This paper presents new evidence on research and teaching productivity in universities using a panel of 102 top U.S. schools during 1981-1999. Faculty employment grows at 0.6 percent per year, compared with growth of 4.9 percent in industrial researchers. Productivity growth per researcher is 1.4-6.7 percent and is higher in private universities. Productivity growth per teacher is 0.8-1.1 percent and is higher in public universities. Growth in research productivity within universities exceeds overall growth, because the research share grows in universities where productivity growth is less. This finding suggests that allocative efficiency of U.S. higher education declined during the late 20th century. R&D stock, endowment, and post-docs increase research productivity in universities, the effect of nonfederal R&D is less, and the returns to research are diminishing. Since the nonfederal R&D share grows and is higher in public schools, this may explain the rising inefficiency. Decreasing returns in research but not teaching suggest that most differences in university size are due to teaching.
    JEL: J3 L3 O3
    Date: 2006–11
  9. By: Giannis Karagiannis (Department of Economics, University of Macedonia, Greece); Efthymios Tsionas (Department of Economics, Athens University of Economics and Business, Greece); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: The present paper extents the existing literature providing a theoretically consistent framework for measuring input-specific technical efficiency in damage control inputs (i.e., pesticides) within a stochastic production frontier model. The theoretical framework for modeling damage control agents is based on Fox and Weersink (1995) model specification that allows for increasing returns on damage control inputs. The empirical model is applied on a cross-section data set of 844 crop farms in Greece during the 2003 period obtained from FADN database. The results suggest that crop farms in Greece are using rather inefficiently pesticides in their fields as their average technical efficiency level was 73.9%. On the other hand, technical efficiency in conventional factors of production was found to be lower on the average, 70.8%. Finally, our results indicate that farms that are technical efficient in the use of conventional inputs are also technical efficient in the use of damage control agents.
    Keywords: words: output damage function, pesticide-specific technical efficiency, crop farms, Greece.
    Date: 2005
  10. By: Yiannis Kamarianakis (Regional Analysis Division, Institute of Applied and Computational Mathematics, Foundation for Research and Technology-Hellas, Greece); Julie Le Gallo (, France)
    Abstract: Economic processes are often characterized by spatial autocorrelation: the coincidence of value similarity to locational similarity. As a consequence of spatial autocorrelation, analysts observe spatial regional clusters. Recent advances in the areas of spatial statistics/econometrics offer tools for the investigation of the aforementioned issues. Following the exploratory spatial data analysis of Le Gallo and Ertur (2003) on European regional per capita GDP we use such tools to investigate the evolution of regional productivity disparities in the European Union and the extent to which the existing interregional inequalities in productivity can be attributed to differences in sectoral composition between regions and/or to uniform productivity gaps across sectors. At the exploratory stage we observe a core-periphery pattern similar to the one observed in the study of regional GDP. At the modeling stage the inclusion of spatial dependencies produces estimations significantly different from the ones presented at previous studies.
    Keywords: spatial autocorrelation, exploratory spatial data analysis, European regions, productivity dispariti
  11. By: Mitra, Arup; Sato, Hajime
    Abstract: This paper examines if the effects of agglomeration economies get manifested in technical efficiency and generate faster economic growth and higher (lower) levels of employment (unemployment). Using the prefecture level data for each of the two-digit groups of industries in Japan, the paper estimates region-specific technical efficiency index based on the stochastic frontier production function framework. The results of the factor analysis show that in most of the industry-groups (with a few exceptions) efficiency has a positive association with external scale variable(s). Though the relationship is not seen to be very strong, it would be equally erroneous to ignore the effect of agglomeration economies on efficiency. In the case of some of the light goods industries the agglomeration effect is relatively stronger. Further, economic growth varies positively with external scale variable(s) and unemployment rate tends to fall with respect to growth and concentration. All this tends to suggest that measures against industrial concentration may be counter-productive, particularly in the context of globalisation when countries are in dire need of raising productivity.
    Keywords: Agglomeration economies, Technical efficiency, Economic conditions, Economic growth, Manufacturing industries, Unemployment, Japan
    JEL: J60 L60 R12
    Date: 2006–02
  12. By: Giannis Karagiannis (Department of Economics, University of Macedonia, Greece); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: This paper provides a parametric decomposition of output growth of sheep farms in Greece using an integrated primal approach, in which output growth is attributed to input growth (size effect), changes in technical efficiency, technical change, and the scale effect. The empirical results indicate that the scale effect, which has not been taken into account by previous studies, has a significant role in explaining output growth and TFP changes. It was found that during the period 1989-92 it caused a 0.61% output slowdown and it was the second main source of TFP changes after technical progress. Consequently, there would have been significant biases in TFP measurement by not accounting for the scale effect.
  13. By: Goedhuys, Micheline (UNU-MERIT); Janz, Norbert (UNU-MERIT); Mohnen, Pierre (UNU-MERIT)
    Abstract: Using the rich micro data set of the World Bank Investment Climate Survey, this paper examines the determinants of productivity among manufacturing firms in the context of a least developed country, Tanzania. In particular it seeks to evaluate the importance of technological variables - such as R&D, education and training, innovation, foreign ownership, licensing and ISO certification - and institutional variables – such as access to credit, health of the workforce, regulation and business support services. Among the technological variables, R&D, and innovations in the form of new products or processes fail to produce any significant impact, and only foreign ownership, ISO certification and high education of the management appear to affect productivity. Some of the institutional variables on the contrary are highly significant and robust to different specifications of the model. As such, formal credit constraints, administrative burdens related to regulations and a lack of business support services seem to depress productivity, while membership of a business association produces the opposite effect. The results of a quantile regression further indicate that the educational level of the managers and access to formal credit are significant for the less productive firms only, whereas for the more productive firms it is having an ISO certification or being a member of a business association that are the significant determinants.
    Keywords: Development, Productivity, Innovation, Institutions
    JEL: O12 D24 C21
    Date: 2006
  14. By: Koetter, Michael
    Abstract: We analyze the stability of efficiency rankings of German universal banks between 1993 and 2004. First, we estimate traditional efficiency scores with stochastic cost and alternative profit frontier analysis. Then, we explicitly allow for different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal demand system, we estimate input and profit demand functions to obtain proxies for expected return and risk. Efficiency is then measured in this risk-return space. Mean risk-return efficiency is somewhat higher than cost and considerably higher than profit efficiency. More importantly, rankorder correlation between these measures are low or even negative. This suggests that best-practice institutes should not be identified on the basis of traditional efficiency measures alone. Apparently, low cost and/or profit efficiency may merely result from alternative yet efficiently chosen risk-return trade-offs.
    Keywords: Risk, efficiency, banks, Germany
    JEL: D21 G21 G33 L21
    Date: 2006
  15. By: Diego Martínez López (Centro de Estudios Andaluces); Jesús Rodríguez López (Universidad Pablo de Olavide)
    Abstract: This paper explores the contribution of Information and Communication Technologies (ICT) on economic growth and labor productivity growth of Andalucía during 1995-2004. We find that the contribution of ICT assets to total market GVA growth is quantitatively modest. Anyway the contribution to GVA growth and employment growth within the intensive ICT sectors has experienced a considerable increase in Andalucía. Although our analysis detects that intensive ICT sectors exhibit a high productivity level with respect to that of the non intensive ones, our main conclusion is that the advantages that might emerge from the use of ICT are nor yet observable in the economic dynamics of Andalucía, at least in a similar manner to that of the most developed.
    Keywords: Information and Communication Technologies, productivity growth, regional growth
    JEL: E13 O30 O40 O47
    Date: 2006
  16. By: Giannis Karagiannis (Department of Economics, University of Macedonia, Greece); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
    Abstract: The temporal pattern of technical efficiency in the technical inefficiency effects model, as initially modeled by Battese and Coelli (1995), is rather restrictive. Specifically, it a priori imposes a common pattern upon all firms in the sample, which in addition is monotonic over time. Obviously this is an undesirable implication of the model especially when there is evidence of strong firm heterogeneity and/or a long time span. To overcome this shortcoming, the present paper incorporates the Cornwell, Sickless and Schmidt (1990) flexible specification of the temporal pattern of technical efficiency into technical inefficiency effects model. The proposed formulation is then applied to the agricultural sector of the EU and US, during the period 1973-1993. The empirical result support the proposed formulation as quite different temporal patterns of technical efficiency have been found for the ten countries included in the analysis.
    Date: 2005
  17. By: Drusilla K. Brown; Thomas Downes; Karen Eggleston; Ratna Kumari
    Abstract: We examine the role that buyers play in helping vendors uncover productivity-enhancing labor management innovations. We report on a buyer-directed factory-based program targeting intestinal parasites and anemia in seven Bangalore apparel factories. Raw pre-post productivity comparisons were confounded by factory organizational changes that were implemented in anticipation of the termination of the MFA. Using a DDD estimator, treatment was found to increase individual productivity of anemic workers by 8 percent. The treatment program also reduced the probability that an anemic worker would leave the factory by 38 percent.
    Date: 2006
  18. By: Ariel Dinar (Rural Development Departent, World Bank, USA); Giannis Karagiannis (Department of Economics, University of Macedonia, Greece); Vangelis Tzouvelekas (Department of Economics, University of Crete, Greece)
  19. By: George Stubos (Bank of Greece); Ioannis Tsikripis (Bank of Greece)
    Abstract: This study reviews and evaluates a particular aspect of the institution building process in the transition countries of Southeast Europe. The focus is the development of the banking sector. It is argued that banking sector development plays an integral and pivotal role in the successful completion of the transition process. It functions as a very strong integrating force contributing to the broader institution building process and as a pillar of future growth and development in the new market environment of the Balkan economies. This study concentrates on three main issues. First, it undertakes a brief literature review of regional integration approaches in the Balkans. Second, it provides an overview of the most significant changes that have taken place in the banking sector. Third, it reviews some structural characteristics and performance indicators, all of which point to considerable advancements made in this sector in recent years. Empirical evidence is provided showing that a substantial harmonisation of ownership structures and performance indicators has been achieved in the banking sectors of these countries initiating a convergence process toward EU banking structures and functions. In this regard, this study complements the findings of other studies focusing on various sectors of economic activity, which clearly show that a de facto regional and, even more so, continental integration of the Southeast European countries is under way.
    Keywords: Balkan banking; foreign banks; regional integration; transition policies
    JEL: R10 P30 G21
    Date: 2005–06
  20. By: Andrés J. Picazo-Tadeo (Departamento de Economía Aplicada II, Universitat de Valencia); Diego Prior (Department of Business Economics, Universitat Autonoma de Barcelona)
    Abstract: Production of desirable outputs is often accompanied by undesirable by-products that have damaging effects on the environment, and whose disposal is frequently regulated by public authorities. In this paper, we compute directional technology distance functions under particular assumptions concerning disposability of bads in order to test for the existence of what we call ‘complex situations’, where the biggest producer is not the greatest polluter. Furthermore, we show that how in such situations, environmental regulation could achieve an effective reduction in the aggregate level of bad outputs without reducing the production of good outputs. Finally, we illustrate our methodology with an empirical application to a sample of Spanish tile ceramic producers.
    Keywords: environmental regulation, efficiency, disposability of bads
    JEL: C61 D21 L68
    Date: 2005–04
  21. By: Panayotis Kapopoulos (Emporiki Bank); Sophia Lazaretou (Bank of Greece, Economic Research Department)
    Abstract: The Berle-Means thesis (1932) implies that diffuse ownership adversely affects firm performance. This paper tries to investigate whether there is strong evidence to support the notion that variations across firms in observed ownership structures result in systematic variations in observed firm performance. We test this hypothesis by assessing the impact of the structure of ownership on corporate performance, measured by profitability, using data for 175 Greek listed firms. Following Demsetz and Villalonga (2001) we model ownership structure, first, as an endogenous variable and, second, we consider two different measures of ownership structure reflecting different groups of shareholders with conflicting interests. Empirical findings suggest that a more concentrated ownership structure positively relates to higher firm profitability. We also find that higher firm profitability requires a less diffused ownership.
    Keywords: Money demand; Ownership structure; Firm performance
    JEL: G32 G34
    Date: 2006–04
  22. By: Pablo de Andres Alonso (Department of Financial Economics and Accounting, University of Valladolid); Eleuterio Vallelado Gonzalez (Department of Financial Economics and Accounting, University of Valladolid)
    Abstract: We test hypotheses on the dual role of boards of directors for a sample of large international commercial banks. We find an inverted U shaped relation between bank performance and board size that justifies a large board and imposes an efficient limit to the board’s size; a positive relation between the proportion of non-executive directors and performance; and a proactive role in board meetings. Our results show that bank boards’ composition and functioning are related to directors’ incentives to monitor and advise management. All these relations hold after we control for bank business, institutional differences, size, market power in the banking industry, bank ownership and investors’ legal protection.
    Keywords: Corporate Governance, Board of Directors, Commercial Banks
    JEL: G32
    Date: 2006–06
  23. By: Panayotis Kapopoulos (Emporiki Bank, Division of Economic Analysis and Research); Sophia Lazaretou (Bank of Greece, Economic Research Department)
    Abstract: The role of corporations in allocating resources has been of great importance in the debate about the manner in which enterprises should be governed to enhance economic growth. Corporate governance features seem to be central to the dynamics by which successful firms and economies improve their performance over time as well as relative to each other. In this paper we try to clarify the relationship between corporate ownership structure and output growth by using the data of La Porta et al. (1999) on ownership structure of large- and medium-sized corporations in 27 wealthy economies. To search for empirical linkages, we use cross-country growth regressions. The evidence provided in the paper suggests that an environment with a higher percentage of directly and indirectly widely-held companies and a lower degree of state than private ownership is associated with a higher growth rate of per capita income. We also conclude that a higher degree of institutional investment does not seem to enhance the growth performance of an economy.
    Keywords: corporate ownership structure, cross section growth model
    JEL: G32 P43 P48 O16
    Date: 2005–03
  24. By: Panayiotis P. Athanasoglou (Bank of Greece); Matthaios D. Delis (Athens University of Economics and Business); Christos K. Staikouras (Athens University of Economics and Business)
    Abstract: The aim of this study is to examine the profitability behaviour of bank-specific, industryrelated and macroeconomic determinants, using an unbalanced panel dataset of South Eastern European (SEE) credit institutions over the period 1998-2002. The estimation results indicate that, with the exception of liquidity, all bank-specific determinants significantly affect bank profitability in the anticipated way. A key result is that the effect of concentration is positive, which provides evidence in support of the structure-conduct-performance hypothesis, while at the same time some relevance of the efficient-structure hypothesis cannot be rejected. In contrast, a positive relationship between banking reform and profitability was not identified, whilst the picture regarding the macroeconomic determinants is mixed. The paper concludes with some remarks on the practicality and implementability of the findings.
    Keywords: Bank profitability; South Eastern European banking sector; Random effects
    JEL: G21 C23 L2
    Date: 2006–09
  25. By: Agenor, Pierre-Richard; Moreno-Dodson, Blanca
    Abstract: This paper provides an overview of the various channels through which public infrastructure may affect growth. In addition to the conventional productivity, complementarity, and crowding-out effects typically emphasized in the literature, the impact of infrastructure on investment adjustment costs, the durability of private capital, and the production of health and education services are also highlighted. Effects on health and education are well documented in a number of microeconomic studies, but macroeconomists have only recently begun to study their implications for growth. Links between health, infrastructure, and growth are illustrated in an endogenous growth model with transitional dynamics, and the optimal allocation of public expenditure is discussed. The concluding section draws implications of the analysis for the design of strategies aimed at promoting growth and reducing poverty.
    Keywords: Transport Economics Policy & Planning,Health Monitoring & Evaluation,Economic Theory & Research,Public Sector Economics & Finance,Private Participation in Infrastructure
    Date: 2006–11–01

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