nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2006‒12‒09
nine papers chosen by
Angelo Zago
Universita degli Studi di Verona

  1. Italy’s decline: getting the facts right By F. Daveri; C. Jona-Lasinio
  2. Does the shadow economy raise observed aggregate efficiency? A cross-country comparison By Pierre-Guillaume Méon; Friedrich G. Schneider; Laurent Weill; Axel Dreher
  3. Mesure de la productivité et pratique de benchmarking:Le cas d’un groupe bancaire français By Aude Hubrecht
  4. Productivity Growth and Convergence in Crop, Ruminant and Non-Ruminant Production: Measurement and Forecasts By Ludena, Carlos; Hertel, Thomas; Preckel, Paul; Foster, Kenneth; Nin Pratt, Alejandro
  5. Czech Bankruptcy Procedures: Ex-post Efficiency View By Ondřej Knot; Ondřej Vychodil
  6. The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries By Carree, M.A.; Thurik, A.R.
  7. Portfolio Manager Ownership and Fund Performance By Khorana, Ajay; Servaes, Henri; Wedge, Lei
  8. Can financial infrastructures foster economic<br />development? By Jean-Bernard Chatelain; Bruno Amable
  9. Does Labour Productivity Flow Across Industries?: Estimation Robust to Panel Heterogeneity and Cross Sectional Correlation By Ali Al-Eyd; Ray Barrell; Dawn Holland

  1. By: F. Daveri; C. Jona-Lasinio
    Abstract: The Italian economy is often said to be on a declining path. In this paper, we document that: (i) Italy’s current decline is a labor productivity problem (ii) the labor productivity slowdown stems from declining productivity growth in all industries but utilities (with manufacturing contributing for about one half of the reduction) and diminished interindustry reallocation of workers from agriculture to market services; (iii) the labor productivity slowdown has been mostly driven by declining TFP, with roughly unchanged capital deepening. The only mild decline of capital deepening is due to the rise in the value added share of capital that counteracted declining capital accumulation.
    Keywords: Productivity growth, Productivity slowdown, TFP, decline, Italy
    JEL: O3 O4 O5
    Date: 2006
  2. By: Pierre-Guillaume Méon (DULBEA, University of Brussels, Belgium); Friedrich G. Schneider (Department of Economics, Johannes Kepler University Linz, Austria); Laurent Weill (Institut d’Etudes Politiques, Université Robert Schuman, Strasbourg, France); Axel Dreher (Department of Management, Technology, and Economics, KOF, ETH Zürich (Swiss Federal Institute of Technology Zurich), CH-8092 Zürich, Switzerland)
    Abstract: We analyze how adding the shadow economy to official output figures affects technical efficiency. We find that this only slightly affects the ranking of efficiency scores, but increases average efficiency. Our results are robust to the functional form of the production technology and the adjustment of labor to account for years of schooling.
    Keywords: shadow economy; income; aggregate productivity; efficiency
    JEL: O11 O17 O47 O5
    Date: 2006–07
  3. By: Aude Hubrecht (Université de Bourgogne)
    Abstract: (VF)Une meilleure compréhension de la productivité des agences bancaires permet de résoudre des questions stratégiques au niveau du groupe bancaire. Pour évaluer toutes les facettes de la productivité, les mesures utilisées correspondent à de nombreux ratios avec au numérateur les dépôts rémunérés, les crédits aux particuliers ou encore l’épargne financière et au dénominateur le facteur capital, le facteur travail ou encore le nombre de comptes. Nous mesurons la productivité de 1611 agences réparties au sein de 16 groupes bancaires. Environ 30% des agences étudiées sont productive. A partir d’un diagnostic individuel des agences nous proposons un diagnostic « réseau » au niveau du groupe bancaire. Nous discutons les variations de la productivité à l’intérieur de chaque groupe bancaire et également entre chaque groupe bancaire à partir d’une approche DEA (« Data Envelopment Analysis »). Cette approche permet de développer un indicateur synthétique de la productivité et de pratiquer du benchmarking.(VA)An understanding of bank branch productivity allows solving strategic question at the group banking level. Branches productivity measurement has commonly used ratios of outputs such as interest-bearing deposit, personal loans or financial saving, and inputs factors like labour capital or number of accounts to measure different facets of productivity. We measure the productivity of 1611 branches divided in 16 banking group. We find that 30% of these branches are productive. From the individual branches diagnostic we propose a “network” diagnostic at the banking group level. We discuss the productivity variation inside each banking group and from a banking group to another by using a DEA (“Data Envelopment Analysis”) approach. This approach allows to develop a synthetic productivity index and to practice benchmarking.
    Keywords: productivité;benchmarking;réseaux d’agences bancaires;productivity;bank branches network
    JEL: G21 M11
    Date: 2006–11
  4. By: Ludena, Carlos; Hertel, Thomas; Preckel, Paul; Foster, Kenneth; Nin Pratt, Alejandro
    Abstract: There is considerable interest in projections of future productivity growth in agriculture. Whether one is interested in the outlook for global commodity markets, future patterns of international trade, or the interactions between land use, deforestation and ecological diversity, the rate of productivity growth in agriculture is an essential input. Yet solid projections for this variable have proven elusive - particularly on a global basis. This is due, in no small part, to the difficulty in measuring historical productivity growth. The purpose of this paper is to report the latest time series evidence on total factor productivity growth for crops, ruminants and non-ruminant livestock, on a global basis. We then follow with tests for convergence amongst regions, providing forecasts for farm productivity growth to the year 2040. The results suggest that most regions in the sample are likely to experience larger productivity gains in livestock than in crops. Within livestock, the non-ruminant sector is expected to continue to be more dynamic than the ruminant sector. Given the rapid rates of productivity growth observed recently, non-ruminant and crop productivity in developing countries may be converging to the productivity levels of developed countries. For ruminants, the results show that productivity levels may be diverging between developed and developing countries.
    Date: 2006
  5. By: Ondřej Knot (Center for Economic Research and Graduate Education-Economics Institute, Prague, Czech Republic); Ondřej Vychodil (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic; CERGE-EI, Prague, Czech Republic)
    Abstract: The paper presents facts on the ex-post efficiency of the Czech bankruptcy procedures. First, it briefly summarizes in what aspects bankruptcy systems differ across countries and introduces the main observations made about the Czech case so far. Second, international data are presented to assess the Czech standings in four aspects of bankruptcies' ex-post efficiency – duration, recovery rate, administrative costs, and continuation/liquidation decision. Third, the paper provides a summary of statistical observations on ex-post efficiency based on data on 903 Czech companies whose bankruptcies were completed during 2004 by the distribution of returns to the claim-holders. In the paper, understanding the ex-post efficiency is meant as an important prerequisite for an analysis from the ex-ante efficiency prospective.
    Keywords: bankruptcy; liquidation; ex-post efficiency
    JEL: G33 K39
    Date: 2006–01
  6. By: Carree, M.A.; Thurik, A.R. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper investigates the impact of changes in the number of business owners on three measures of economic performance, viz. employment growth, GDP growth and labor productivity growth. Particular attention is devoted to the lag structure. The analysis is performed at the country level for 21 OECD countries. Our results confirm earlier evidence on three stages in the impact of entry on economic performance: an initial direct positive effect, followed by a negative effect due to exiting capacities and finally a stage of positive supply-side effects. The net effect is positive for employment and GDP growth. Changes in the number of business owners have no effect on labor productivity.
    Keywords: Business Ownership;Entrepreneurship;Economic Growth;Lag Structure;
    Date: 2006–11–28
  7. By: Khorana, Ajay; Servaes, Henri; Wedge, Lei
    Abstract: This paper documents the range of portfolio manager ownership in the funds they manage and examines whether higher ownership is associated with improved future performance. Almost half of all managers have ownership stakes in their funds, though the absolute investment is modest. Future risk-adjusted performance is positively related to managerial ownership, with performance improving by about three basis points for each basis point of managerial ownership. These findings persist after controlling for various measures of fund board effectiveness. Fund manager ownership is higher in funds with better past performance, lower front-end loads, smaller size, longer managerial tenure, and funds affiliated with smaller families. It is also higher in funds with higher board member compensation and in equity funds relative to bond funds. Future performance is positively related to the component of ownership that can be predicted by other variables, as well as the unpredictable component. Our findings support the notion that managerial ownership has desirable incentive alignment attributes for mutual fund investors, and indicate that the disclosure of this information is useful in making portfolio allocation decisions.
    Keywords: fund performance; portfolio manager ownership
    JEL: G23 G30
    Date: 2006–11
  8. By: Jean-Bernard Chatelain (PSE - Paris-Jourdan Sciences Economiques - [CNRS : UMR8545] - [Ecole des Hautes Etudes en Sciences Sociales][Ecole Nationale des Ponts et Chaussées][Ecole Normale Supérieure de Paris], EconomiX - [CNRS : UMR7166] - [Université de Paris X - Nanterre]); Bruno Amable (PSE - Paris-Jourdan Sciences Economiques - [CNRS : UMR8545] - [Ecole des Hautes Etudes en Sciences Sociales][Ecole Nationale des Ponts et Chaussées][Ecole Normale Supérieure de Paris])
    Abstract: In this paper, financial infrastructures increase the efficiency of the banking sector: they decrease the market power due to horizontal differentiation of the financial intermediaries,<br />lower the cost of capital, increase the number of depositors and the amount of intermediated<br />savings, factors which in turn increase the growth rate and may help countries to take off<br />from a poverty trap. Taxation finances financial infrastructures and decreases the private<br />productivity of capital. Growth and welfare maximising levels of financial infrastructures<br />are computed.
    Keywords: Endogenous growth; Imperfect competition; Financial infrastructures
    Date: 2006–11–30
  9. By: Ali Al-Eyd; Ray Barrell; Dawn Holland
    Abstract: In this paper we report the results of a series of internal and external shocks on the Euro Area, using the National Institute’s Global Econometric Model, NiGEM. The differences in impacts across countries are discussed, stressing the role of openness to the rest of the world, the nature of investment finance, the importance of wealth in different economies, and the impact of liquidity constrained consumers on the transmission mechanism. The link between financial market integration and channels of policy transmission is closely studied.
    Date: 2006–04

This nep-eff issue is ©2006 by Angelo Zago. 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.
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