New Economics Papers
on Efficiency and Productivity
Issue of 2007‒11‒03
fourteen papers chosen by

  1. Market Disciplining Role of Crisis on the Restructuring of the Turkish Banking Sector By Aysan, Ahmet Faruk; Ceyhan, Sanli Pinar
  2. Analysis of factors affecting the technical efficiency of arabica coffee producers in Cameroon By Amadou Nchare
  3. What Determines the Banking Sector Performance in Globalized Financial Markets: The Case of Turkey? By Aysan, Ahmet Faruk; Ceyhan, Sanli Pinar
  4. Does taking the shadow economy into account matter to measure aggregate efficiency? By Pierre-Guillaume Méon; Friedrich Schneider; Laurent Weill
  5. On The Distribution of Estimated Technical Efficiency in Stochastic Frontier Models By Wei Siang Wang; Peter Schmidt
  6. The Effects of External and Internal Strikes on Total Factor Productivity By Pedro C. Ferreira; Antonio Galvao; Samuel Pessôa
  7. Consolidation of Banks in Japan: Causes and Consequences By HOSONO Kaoru; SAKAI Koji; TSURU Kotaro
  8. Concentration, Competition, Efficiency and Profitability of the Turkish Banking Sector in the Post-Crises Period By Abbasoğlu, Osman Furkan; Aysan, Ahmet Faruk; Gunes, Ali
  9. Talent Utilization, a Source of Bias in Measuring TFP By Hosny Zoabi
  10. Measuring Productivity Change without Neoclassical Assumptions: A Conceptual Analysis By Bert M. Balk
  11. Country Size, Productivity and Trade Share Convergence: An Analysis of Heterogenous Firms and Country Size Dependent Beachhead Costs By Akerman, Anders; Forslid, Rikard
  12. Health Econometric: Uncovering the Anthropometric Behavior on Women's Labor Market By Lopez-Pablos, Rodrigo A.
  13. Trying to Assess the Quality of Macroeconomic Data – the Case of Swiss Labour Productivity Growth as an Example By Jochen Hartwig
  14. Banking Competition and Capital Ratios By Martin Cihák; Klaus Schaeck

  1. By: Aysan, Ahmet Faruk; Ceyhan, Sanli Pinar
    Abstract: This paper aims to find the productivity change in the banking sector between 1990 and 2006, with an emphasis to the period after 2001 crisis during which the Turkish banking system experienced a structural change. Using DEA, we find the Malmquist TFP Change Index and its mutually exclusive and exhaustive components of efficiency and technological changes over time. Additionally, we further decompose the technical efficiency change into pure technical and scale efficiency changes. The productivity of the banking sector is found out to have increased, the main reason being technological improvement rather than efficiency increase. For the cases of productivity decline, however, the changes come from the efficiency side rather than technology. An analysis with respect to the ownership status revealed that foreign banks were the most efficient group until 2001 after which state banks captured the first place. We attribute this change to the inflation accounting practice as well as better management of state banks with less political intrusion. The analysis with respect to bank size reveals that before 2000, the most efficient bank group was the medium-scale banks (the banks mainly purchased by foreign banks) followed by small banks while the efficiency scores converged after 2001.
    Keywords: Turkish Banking Sector; Data Envelopment Analysis; Efficiency; Productivity; Post-Crises Period
    JEL: E32 G20 G21
    Date: 2007
  2. By: Amadou Nchare
    Abstract: This study analyses the factors influencing the technical efficiency of arabica coffee farmers in Cameroon. To carry out this analysis, a translog stochastic production frontier function, in which technical inefficiency effects are specified to be functions of socioeconomic variables, is estimated using the maximum-likelihood method. The data used were collected from a sample of 140 farmers during the 2004 crop year. The results obtained show some increasing returns to scale in coffee production. The mean technical efficiency index is estimated at 0.896, and 32% of the farmers surveyed have technical efficiency indexes of less than 0.91. The analysis also reveals that the educational level of the farmer and access to credit are the major socioeconomic variables influencing the farmers’ technical efficiency. Finally, the findings prove that further productivity gains linked to the improvement of technical efficiency may still be realized in coffee production in Cameroon.
    Keywords: Technical efficiency, stochastic production frontier, arabica coffee, Cameroon
    JEL: O13 Q18 C21 R30
    Date: 2007–01
  3. By: Aysan, Ahmet Faruk; Ceyhan, Sanli Pinar
    Abstract: This study attempts to give an insight about the trend in the performance of the Turkish banking sector by conducting a panel data fixed effects regression analysis. The results reveal that efficiency change is negatively related to the number of branches. We find a positive relationship between loan ratio and the performance indices efficiency and efficiency change. Furthermore, bank capitalization is positively related to efficiency change. Interestingly however, return on equity is not statistically significant in explaining any of the efficiency measures. There is also no robust relationship between foreign ownership and efficiency. Finally, restructuring attempts in post-crises epoch robustly account for the improvement in efficiency scores in recent years.
    Keywords: Panel Data Analysis; Efficiency; Productivity; Turkish Commercial Banks; Foreign Ownership
    JEL: C23 E44 O11
    Date: 2007
  4. By: Pierre-Guillaume Méon (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and DULBEA, Université Libre de Bruxelles, Brussels.); Friedrich Schneider (Department of Economics, Johannes Kepler University of Linz, Austria); Laurent Weill (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and LARGE, Université Robert Schuman, Institut d'Etudes Politiques, France)
    Abstract: We analyze how adding the shadow economy to official output figures affects estimated technical efficiency at the country level. We find that this only slightly affects the ranking of efficiency scores, but increases average efficiency in a sample of 87 to 97 countries, both developed and developing. Our results are robust to the functional form of the production technology and the adjustment of labour to account for years of schooling.
    Keywords: shadow economy, income, aggregate productivity, efficiency.
    JEL: O11 O17 O47 O5
    Date: 2007–10
  5. By: Wei Siang Wang; Peter Schmidt (CEPA - School of Economics, The University of Queensland)
    Date: 2007
  6. By: Pedro C. Ferreira; Antonio Galvao; Samuel Pessôa (EPGE/FGV)
    Date: 2007–10
  7. By: HOSONO Kaoru; SAKAI Koji; TSURU Kotaro
    Abstract: We investigate the motives and consequences of the consolidation of banks in Japan during the period of fiscal year 1990-2004 using a comprehensive dataset. Our analysis suggests that the government's too-big-to-fail policy played an important role in the mergers and acquisitions (M&As), though its attempt does not seem to have been successful. The efficiency-improving motive also seems to have driven the M&As conducted by major banks and regional banks in the post-crisis period, while the market-power motive seems to have driven the M&As conducted by regional banks and corporative (shinkin) banks. We obtain no evidence that supports managerial motives for empire building.
    Date: 2007–10
  8. By: Abbasoğlu, Osman Furkan; Aysan, Ahmet Faruk; Gunes, Ali
    Abstract: After 2001 crisis, the macroeconomic environment led to important changes in Turkish banking sector which has experienced a process of concentration by involving in merger and acquisition activities and liquidation of some insolvent banks. Using the data from the detailed balance sheets of the banks that operated in the years from 2001 to 2005, we examine the degree of concentration and degree of competition in the market by applying Panzar and Rosse’s approach. We also explore the existence of relationship between efficiency and profitability of the banks taking into account the internationalization of banking. Our results do not suggest the existence of relationship between concentration and competition. There is also no robust relationship between efficiency and profitability.
    Keywords: Concentration; Competition; Efficiency; Profitability of the Turkish Banking Sector
    JEL: G15 G20
    Date: 2007
  9. By: Hosny Zoabi
    Abstract: This paper analyzes a model of economic growth that explains differences in economic structure across countries. It highlights the interplay between productivity, talents utilization and entrepreneurship incentives. The paper has two main results. First, it argues that when measuring human capital we ignore one dimension, which is \talents utilization". It is suggested then that, in development accounting, human capital is inaccurately measured. Second, it shows that the magnitude of talents utilization increases with the level of development. Thus, the paper suggests that talents utilization amplifies differences in productivity and contributes to the explanation of large observed international differences in per capita income.
    Keywords: Total factor productivity, talent utilization, human capital, factor accumulation
    JEL: L16 O11 O14 O33 O47
    Date: 2007
  10. By: Bert M. Balk (CEPA - School of Economics, The University of Queensland)
    Abstract: The measurement of productivity change (or difference) is usually based on models that make use of strong assumptions such as competitive behaviour and constant returns to scale. This survey discusses the basics of productivity measurement and shows that one can dispense with most if not all the usual, neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.
    Date: 2007
  11. By: Akerman, Anders; Forslid, Rikard
    Abstract: This paper modifies the heterogenous firms and trade model by Melitz (2003) by explicitly modelling the entry cost of a firm in a new market as a function of market size. This leads to several new predictions compared to the standard model: The productivity of non exporters and exporters depends on market size. Moreover, manufacturing export shares vary inversely with country size. However, export shares converge (upwards) as markets are integrated. The empirical part of the paper offers support for our model specification.
    Keywords: beachhead costs; heterogenous firms; market size
    JEL: D21 F12 F15
    Date: 2007–10
  12. By: Lopez-Pablos, Rodrigo A.
    Abstract: Exploring current literature which assess relations between cognitive ability and height, obesity, and its productivity-employability effect on women's labor market; we appraised the Argentine case to find these social-physical relations that involve anthropometric and traditional economic variables. Adapting an anthropometric Mincer approach by using probabilistic and censured econometric models which were developed for it. Have been found evidence that could be understood as existence of discriminative behavior on obese women to market entrance; besides, a good performance of women height as an unobserved approximation of cognitive ability measure to explain feminine productivity.
    Keywords: Height; Obesity; Anthropometric Mincer; Discrimination.
    JEL: I12 J24 C34
    Date: 2007–08–30
  13. By: Jochen Hartwig (KOF Swiss Economic Institute, ETH Zurich)
    Abstract: Macroeconomic data are indispensable for modern governance, yet it is often unclear how reliable these data are. The production process of macroeconomic data inside the statistical offices is often not very transparent for the general public. Bystanders usually have no choice but to take for granted the published data because criteria by which to judge data quality are wanting. Hoping to contribute to a better understanding of the quality of macroeconomic data, this paper proposes several plausibility checks and applies them to recently published Swiss labour productivity growth figures. Although the proposed checks cannot ‘prove’ or ‘disprove’ the official data, they are capable of either strengthening our confidence in the official data or, alternatively, of casting them into doubt. Policy debates drawing on official data will hardly be able to ignore differences in the degree of confidence with which these data are held to be accurate.
    Keywords: Accuracy of macroeconomic observations, statistical artefacts, labour productivity
    JEL: C82 O47
    Date: 2007–09
  14. By: Martin Cihák; Klaus Schaeck
    Abstract: We use data for more than 2,600 European banks to test whether increased competition causes banks to hold higher capital ratios. Employing panel data techniques, and distinguishing between the competitive conduct of small and large banks, we show that banks tend to hold higher capital ratios when operating in a more competitive environment. This result holds when controlling for the degree of concentration in banking systems, inter-industry competition, characteristics of the wider financial system, and the regulatory and institutional environment.
    Keywords: Working Paper , Banks , Capital , Competition , Bank supervision , Industrial structure ,
    Date: 2007–09–17

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