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on Efficiency and Productivity |
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Issue of 2007‒05‒04
five papers chosen by |
| By: | Modén, Karl-Markus (Södertörn University College); Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)) |
| Abstract: | We examine the effects of foreign entry on productive efficiency during the Polish investment liberalization. The performance of foreign acquisitions is compared to foreign firms entering the market through greenfield entry, as well as domestic acquisitions of privatized firms, domestic greenfields and remaining state-owned (non-privatized) firms during the period 1995-2000. We find that foreign privatized firms have realized larger productivity gains than all types of domestic firms and that this is not due to higher price-cost margins, which is consistent with the idea that foreign firms bring in firm-specific knowledge. Foreign greenfields have the highest average labour productivity, while foreign privatizations show the largest productivity increase. |
| Keywords: | Privatizations; M As; FDI; Foreign Ownership; Productivity |
| JEL: | F23 J31 |
| Date: | 2007–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0703&r=eff |
| By: | Bernd Frick (Witten/Herdecke University); Robert Simmons (Lancaster University) |
| Abstract: | Although a considerable literature exists on determinants of managerial compensation, much of it focussing on the role of incentives, there is much less known about the im-pact of managerial remuneration and quality upon attainment of organizational goals. In this paper we use a novel panel data set from the German premier soccer league (Bundesliga) as a case to show how variations in managerial compensation impact posi-tively upon organizational (team) success. This positive impact is revealed using sto-chastic frontier production function estimation. Given a particular amount of spending on players relative to the rest of the Bundesliga, a team that hires a better quality coach can expect to achieve a higher points score by reducing technical inefficiency. However, our results also suggest that the market for head coaches may be allocatively inefficient in that coaches are paid below their marginal revenue products. |
| Keywords: | head coaches, soccer, efficiency, stochastic frontier analysis |
| JEL: | J44 L83 M50 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:spe:wpaper:0708&r=eff |
| By: | Herrendorf, Berthold; Valentinyi, Akos |
| Abstract: | Many applications in economics use multi-sector versions of the growth model with Cobb--Douglas production functions at the sector level. In this paper, we measure the U.S. income shares of capital and labour for five sectors that encompass the typical sectors used in the literature. We also split the capital shares of these five sectors into the sector income shares of land and of structures and equipment. We find that the factor income shares differ widely across sectors. For example the capital share in agriculture is about twice that in construction. Moreover, the land shares in agriculture and in services are sizeable whereas the land shares in all other sectors are small. Our findings suggest that the general practice of using the economy-wide factor income shares also at the sector level is not a good practice. |
| Keywords: | industry-by-commodity total requirement matrix; input-output tables; sector factor shares |
| JEL: | O41 O47 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6271&r=eff |
| By: | Adegbesan, Tunji (IESE Business School); Ricart, Joan E. (IESE Business School) |
| Abstract: | Most approaches to innovation bear the implicit assumption that increased innovativeness leads to improved organizational performance. Thus, more attention has been focused on innovativeness than on innovation performance; on novelty than on value. However, recent empirical evidence calls into question the unqualified optimism surrounding innovation, and leads us to ask what we really know about when technological innovation improves performance. In this paper, we seek to make a contribution by presenting the results of an exhaustive review of extant knowledge on the outcomes of technological innovation. Our synthesis of the literature allows us to relate in one parsimonious model the drivers and moderators of the antecedents, technical outcomes, and performance outcomes of technological innovation and technological change. We also make sense of the proliferation of terms, and consequent terminological ambiguity, which characterizes a lot of work on technological innovation. Finally, in the light of the model presented and recent developments in work on firm capabilities, we indicate possible avenues for further development of this critical area of research. |
| Keywords: | Technological innovation; organizational performance; innovation and innovativeness; |
| Date: | 2007–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0668&r=eff |
| By: | Gianni De Nicoló; John H. Boyd; Abu M. Jalal |
| Abstract: | This paper studies two new models in which banks face a non-trivial asset allocation decision. The first model (CVH) predicts a negative relationship between banks' risk of failure and concentration, indicating a trade-off between competition and stability. The second model (BDN) predicts a positive relationship, suggesting no such trade-off exists. Both models can predict a negative relationship between concentration and bank loan-to-asset ratios, and a nonmonotonic relationship between bank concentration and profitability. We explore these predictions empirically using a cross-sectional sample of about 2,500 U.S. banks in 2003 and a panel data set of about 2,600 banks in 134 nonindustrialized countries for 1993-2004. In both these samples, we find that banks' probability of failure is positively and significantly related to concentration, loan-to-asset ratios are negatively and significantly related to concentration, and bank profits are positively and significantly related to concentration. Thus, the risk predictions of the CVH model are rejected, those of the BDN model are not, there is no trade-off between bank competition and stability, and bank competition fosters the willingness of banks to lend. |
| Keywords: | Bank competition , concentration , risk , asset allocations , Bank soundness , Competition , Profits , Asset management , Resource allocation , Risk management , Economic models , |
| Date: | 2007–01–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:06/297&r=eff |