nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2009‒02‒07
eleven papers chosen by
Angelo Zago
University of Verona

  1. Impacts of Federal Government Programs and Specific Farm Variables on Technical Effiicency of Dairy Farms By Murova, Olga; Chidmi, Benaissa
  3. Total factor productivity, intangible assets and spatial dependence in the European regions By Barbara Dettori; Emanuela Marrocu; Raffaele Paci
  4. Partial Factor Productivity, Agronomic Efficiency, and Economic Analyses of Maize in Wheat-Maize Cropping System in Pakistan By Amanullah; Almas, Lal K.
  5. Schooling, Production Structure and Growth: An Empirical Analysis on Italian Regions By Carina Hirsch; Giovanni Sulis
  6. Cow-Calf Farm Management: Farm survey evidence from 2007 By Nehring, Richard F.; Peel, Derrell; Nulph, David
  7. Farm Level Nonparametric Analysis of Profit Maximization Behavior with Measurement Error By Zereyesus, Yacob; Featherstone, Allen; Langemeier, Michael
  8. Growth and Inequality: Dependence of the Time Path of Productivity Increases (and other Structural Changes) By Manoj Atolia; Santanu Chatterjee; Stephen J. Turnovsky
  9. The Impact of Labor Constraints on the Farm Performance By Santos, Florence Ivy M.; Park, Timothy A.; Escalante, Cesar L.
  10. Identifying the elasticity of substitution with biased technical change By Miguel A. León-Ledesma; Peter McAdam; Alpo Willman
  11. Gravity, Productivity and the Pattern of Production and Trade By James E. Anderson

  1. By: Murova, Olga; Chidmi, Benaissa
    Keywords: technical efficiency, federal government programs, SFA and DEA analyses, Production Economics, Productivity Analysis,
    Date: 2008
  2. By: Shaik, Saleem
    Abstract: The paper contributes by demonstrating the sensitivity of nonparametric programming productivity measures to the choice of model –time series versus panel models of Malmquist productivity, and to various levels of commodity aggregation compared to the traditional Tornqvist-Theil index approach employing U.S. state-level data from 1960-96. To illustrate the sensitive of nonparametric programming productivity measures, we compare the implicit shadow shares recovered from the dual values of the Malmquist productivity and total factor productivity methods to the observed shares of the Tornqvist-Theil index for U.S level data from 1948-1994.
    Keywords: Tornqvist-Theil Index, Time series, and Panel models, Malmquist productivity and Malmquist total factor productivity programming, Share-weights., Productivity Analysis, O3, C6, Q1,
    Date: 2009–01–12
  3. By: Barbara Dettori; Emanuela Marrocu; Raffaele Paci
    Abstract: In the last decade there has been an upsurge of studies on international comparisons of Total Factor Productivity (TFP). The empirical evidence suggests that countries and regions differ not only in traditional factor endowments (labour and physical capital) but mainly in productivity and technology. Therefore, a crucial issue is the analysis of the determinants of such differences in the efficiency levels across economies. In this paper we try to assess these issues by pursuing a twofold aim. First, we derive a regression based measure of regional TFP which have the nice advantage of not imposing a priori restrictions on the inputs elasticities; this is done by estimating a Cobb-Douglas production function relationship for 199 European regions over the period 1985-2006, which includes the traditional inputs as well as a measure of spatial interdependences across regions. Secondly, we investigate the determinants of the TFP levels by analyzing the role played by intangible factors: human capital, social capital and technological capital. It turns out that a large part of TFP differences across the European regions are explained by the disparities in the endowments of such assets. This outcome indicates the importance of policy strategies which aim at increasing the level of knowledge and social capital as stressed by the Lisbon agenda.
    Keywords: Total factor productivity; human capital; social capital; technology; Europe.
    JEL: R11 O47 O52 C31
    Date: 2008
  4. By: Amanullah; Almas, Lal K.
    Abstract: Getting maximum benefits from cereals do not lie in reducing N-rate and its number of splits but lowering cost per unit cereal production through higher yields. Field experiments were conducted on maize (Zea mays L.) at the New Developmental research Farm of NWFP (Northwest Frontier Province) Agricultural University Peshawar-Pakistan during 2002-03 and 2003-04 in order to investigate effects of variable rates of N and its time of application on the partial factor productivity (PFPN), agronomic efficiency (AEN), net returns (NR), value-cost ratio (VCR) and marginal returns (MR). The 2 x 3 x 6 factorial experiment was designed having two plant densities (D1 = 60,000 and D2 = 100,000 plants ha-1) and three N levels (N1 = 60, N2 = 120 and N3 = 180 kg N ha-1) applied to main plots, while six split application of N in different proportions were applied to subplots in two equal (T1), three equal (T2), three unequal (T3), four equal (T4), five equal (T5) and five unequal splits (T6) at sowing and with 1st, 2nd, 3rd and 4th irrigation at two wk intervals. Maize ranked first with maximum PFPN, AEN, NR, VCR and MR at higher than at lower plant density, and the increase in all these parameters studied in the experiments was more in 2003-04 as compared to 2002-03. Both PFPN and AEN showed negative relationship with increase in N rates and the cast that vary, but NR, VCR and MR showed positive relationship with increase in N rates and the cost that vary. Among time of N application, maximum PFPN, AEN, NR, VCR and MR were calculated when N was applied in five equal splits (T5) almost comparable with T4 and T6 but was more economical when compared with T1, T2, and T3. In conclusion, the findings suggest that growing maize at D2 applied with N3 in four to five splits is more economical in the wheat-maize cropping system of NWFP.
    Keywords: maize, Zea mays L., planting density, nitrogen, agronomic efficiency, economics, Crop Production/Industries, Farm Management, International Development, Production Economics, Productivity Analysis,
    Date: 2009
  5. By: Carina Hirsch; Giovanni Sulis
    Abstract: This paper analyses the growth effects of high levels of human capital at the industry level. By favouring technology adoption, human-capital-intensive industries grow faster compared to less human-capital-intensive industries in economies that have higher levels of human capital. Using data for nine macro sectors of manufacturing industries in the twenty Italian regions, the results show positive and significant effects of human capital levels and accumulation on value added growth. This result is robust to a series of sensitivity checks such as measures of productivity growth and different indicators of human capital. This finding is particularly important for Italy, as it has always had a model of industrial specialization focused on the traditional sectors which have a low content of technology and human capital.
    Keywords: Growth, Human Capital, Technology Adoption, Regions, Sectors, Italy.
    JEL: O47 R11
    Date: 2008
  6. By: Nehring, Richard F.; Peel, Derrell; Nulph, David
    Abstract: This study describes and compares cow-calf operations and assesses their relative competitiveness, developing performance measures for a sample of U.S. farms. We find that larger operations tend to be significantly more scale and technically efficient than smaller operations. However, we do not find significant differences in net farm returns by size except on medium large operations—showing virtually no net return on farm assets in 2007. While larger operations are clearly more scale and technically efficient and have lower variable costs per cow, off-farm income makes smaller operations competitive as reflected in higher household returns than all size groups--except for very large cow-calf operations.
    Keywords: Cow-calf, performance measures, technical efficiency, Farm Management, Production Economics, Research Methods/ Statistical Methods,
    Date: 2009–01–14
  7. By: Zereyesus, Yacob; Featherstone, Allen; Langemeier, Michael
    Abstract: This paper tests the farm level profit maximization hypothesis using a nonparametric production analysis approach allowing for measurement error in the input and output variables. All farms violated Varian’s deterministic Weak Axiom of Profit Maximization (WAPM). The magnitude of minimum critical standard errors required for consistency with profit maximization, convex technology production was smaller after allowing technological change during the sample period. Results indicate strong support for the presence of technological change during the sample period.
    Keywords: nonparametric analysis, profit maximization, measurement error, technological change, Production Economics, D24,
    Date: 2009
  8. By: Manoj Atolia (Department of Economics, Florida State University); Santanu Chatterjee (Department of Economics, Terry College of Business, University of Georgia); Stephen J. Turnovsky (Department of Economics, University of Washington)
    Abstract: This paper examines the significance of the time path of a given productivity increase on growth and inequality. We show that whereas the time path impacts only the transitional path of aggregate quantities and has no effect on their ultimate steady-state levels, it has both transitional and permanent consequences for wealth and income distribution. As a result, the growth-inequality trade-off generated by a given discrete increase in productivity contrasts sharply with that obtained when the same ultimate productivity increase is acquired gradually. This is true both in transition and across steady states. We show that a gradual productivity increase can generate a Kuznets-type inverted U-shaped relationship between inequality and per-capita income. The distance from the technology frontier is also shown to have important implications for both the magnitude and persistence of inequality. Finally, our results suggest that economies with similar aggregate structural characteristics may have very different outcomes for income and wealth inequality, depending on the intrinsic nature of the productivity growth path.
    Keywords: Reverse shooting, global saddle path, distance mapping
    JEL: C63 C61
    Date: 2009–01
  9. By: Santos, Florence Ivy M.; Park, Timothy A.; Escalante, Cesar L.
    Abstract: Stricter immigration policies that affect an estimated 12 million unauthorized immigrants, 40% of whom are hired as farm workers, can potentially leave the highly labor-dependent organic farms more economically vulnerable. The displacement of unauthorized immigrants will expectedly create labor shortages. This study analyzes the impact of hiring constraints and changes in farm labor market conditions (due to stricter immigration policies) on the technical efficiency and financial performance of organic and conventional farms. A production function approach is used to analyze survey data that has a mix of organic and conventional farms in the Southeast region. Adjustment strategies to deal with labor shortage and providing workers with nonwage incentives have been determined to be an important determinant of farm income. Among the strategies, adjustment of wage and nonwage benefits were found to be the most effective but a combination of strategies is the most preferred approach to deal with labor shortage. Furthermore, we found productivity difference between farmers with labor shortage adjustment strategies and those who do not.
    Keywords: Agricultural Finance, Production Economics, Productivity Analysis,
    Date: 2009
  10. By: Miguel A. León-Ledesma (Department of Economics, Keynes College, University of Kent, Canterbury, Kent CT2 7NP, United Kingdom.); Peter McAdam (Corresponding author: Research Department, European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main.); Alpo Willman (Research Department, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.)
    Abstract: Despite being critical parameters in many economic fields, the received wisdom, in theoretical and empirical literatures, states that joint identification of the elasticity of capital-labor substitution and technical bias is infeasible. This paper challenges that pessimistic interpretation. Putting the new approach of "normalized" production functions at the heart of a Monte Carlo analysis we identify the conditions under which identification is feasible and robust. The key result is that the jointly modeling the production function and first-order conditions is superior to single-equation approaches in terms of robustly capturing production and technical parameters, especially when merged with "normalization". Our results will have fundamental implications for production-function estimation under non-neutral technical change, for understanding the empirical relevance of normalization and the variability underlying past empirical studies. JEL Classification: C22, E23, O30, 051.
    Keywords: Constant Elasticity of Substitution, Factor-Augmenting Technical Change, Normalization, Factor Income share, Identification, Monte Carlo.
    Date: 2009–01
  11. By: James E. Anderson (Boston College)
    Abstract: The aggregated incidence of bilateral trade costs is derived from the gravity model. Incidence is equivalent to a TFP penalty. Sectoral and national differences in TFP have sharp implications for the equilibrium pattern of production and trade in a specific factors model of production. Unskilled labor is intersectorally mobile. Skilled labor acquires sector specific skills. Productivity shocks cause incidence shock that induce ex post inefficient allocation of skilled labor. Below (above) average TFP sectors produce less and have below (above) average skill premia. Ex ante efficient allocation is lower in sectors with riskier TFP incidence, despite risk neutrality.
    Keywords: gravity model, trade costs, total factor productivity
    JEL: F10 D24
    Date: 2008–12–01

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