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on Efficiency and Productivity |
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Issue of 2009‒10‒24
eleven papers chosen by |
| By: | Muliaman D. Hadad (Bank Indonesia, Jakarta, Indonesia); Maximilian J. B. Hall (Dept of Economics, Loughborough University); Wimboh Santoso (Bank Indonesia, Jakarta, Indonesia); Karligash Kenjegalieva (Dept of Economics, Loughborough University); Richard Simper (Dept of Economics, Loughborough University) |
| Abstract: | In this study, we utilise a new, non-parametric efficiency measurement approach which combines the semi-oriented radial measure data envelopment analysis (SORM DEA) approach for dealing with negative data (Emrouznejad et al., 2010) with the slacks-based efficiency measure of Tone (2001, 2002), to analyse efficiency and productivity changes for Indonesian banks over the period Quarter I 2003 to Quarter IV 2007. Using quarterly data based on supervisory data provided by Bank Indonesia we find that, under the intermediation-based approach to efficiency estimation, average Indonesian bank efficiency somewhat declined during the sample period, from 73% to 63%, reaching a nadir of 53% at end-June 2007. With respect to the bank groupings, Indonesian ‘state-owned’ banks were the most efficient at the beginning of the sample period (with average efficiency of 92%) but, by the end of the sample period, they had been usurped by the ‘joint-venture’ and ‘non-foreign exchange private’ banks. The regional government-owned banks were found to be the least efficient throughout. Finally, Malmquist results for the Indonesian banking industry suggest that the main driver of productivity growth is technological progress. A strategy based on the gradual adoption of newer technology, according to our results, thus seems to have the highest potential for boosting the productivity of the financial intermediary operations of Indonesian banks. |
| Keywords: | Indonesian Finance and Banking; Productivity; Efficiency. |
| JEL: | C23 C52 G21 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2009_13&r=eff |
| By: | Pellervo Hamalainen (Department of Economics, University of Turku, FINLAND) |
| Abstract: | This paper summarizes previous results on the productivity of public capital. In recent literature, Aschauer's (1989) estimate for the productivity of public capital is often considered too high and the size of the effect is still open to debate. However, the positive effect of public capital on the productivity of the private sector is quite widely accepted. |
| Keywords: | Public capital, public investments, productivity |
| JEL: | H11 H54 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:tkk:dpaper:dp55&r=eff |
| By: | Paolo Buccirossi; Lorenzo Ciari; Tomaso Duso; Giancarlo Spagnolo; Cristiana Vitale |
| Abstract: | This paper empirically investigates the effectiveness of competition policy by estimating its impact on Total Factor Productivity (TFP) growth for 22 industries in 12 OECD countries over the period 1995-2005. We find a robust positive and significant effect of competition policy as measured by newly created indexes. We provide several arguments and results based on instrumental variables estimators as well as non-linearities, to support the claim that the established link can be interpreted in a causal way. At a disaggregated level, the effect on TFP growth is particularly strong for specific aspects of competition policy related to its institutional set up and antitrust activities (rather than merger control). The effect is strengthened by a good legal system, suggesting complementarities between competition policy and the efficiency of law enforcement institutions. <br> <br> <i>ZUSAMMENFASSUNG - (Wettbewerbspolitik und Produktivitätswachstum: Eine empirische Bewertung) <br>In diesem Beitrag untersuchen wir die Effektivität von Wettbewerbspolitik anhand der empirischen Schätzung ihrer Auswirkung auf das totale Faktorproduktivitätswachstum (TFP) für 22 Branchen in 12 OECD-Ländern über den Zeitraum 1995-2005. Wir finden eine robuste positive und statistisch signifikante Wirkung der Wettbewerbspolitik, welche von neu erstellten Indizes gemessen wird. Wir präsentieren unterschiedliche Argumente und Ergebnisse basierend auf Instrumental-Variablen Schätzern sowie Nichtlinearitäten, um den geschätzten Zusammenhang als kausal interpretieren zu können. Auf einer disaggregierten Ebene aufgeschlüsselt ist die Auswirkung auf das TFP-Wachstum besonders stark für spezifische Aspekte der Wettbewerbspolitik, welche eher mit deren institutionellen Aufbau und kartellrechtlichen Tätigkeiten in Zusammenhang stehen als mit der Fusionskontrolle. Wir zeigen, dass der gemessene Effekt durch gute Rechtssysteme gestärkt wird, was auf Komplementaritäten zwischen Wettbewerbspolitik und der Effizienz der Justiz hindeutet.<i> |
| Keywords: | Competition Policy, Productivity Growth, Institutions, Deterrence, OECD |
| JEL: | L4 K21 O4 C23 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:wzb:wzebiv:spii2009-12&r=eff |
| By: | Marin, Giovanni; Mazzanti, Massimiliano |
| Abstract: | This paper provides new empirical evidence on Environmental Kuznets Curves (EKC) for CO2 and air pollutants at sector level. A panel dataset based on the Italian NAMEA (National Accounting Matrix including Environmental Accounts) over 1990-2006 is analysed, focusing on both emissions efficiency (EKC model) and total emissions (IPAT model). Results show that, looking at sector evidence, both decoupling and also eventually re-coupling trends could emerge along the path of economic development. The overall performance on here CO2, is not compliant with Kyoto targets. SOx and NOx show decreasing patterns, though the shape is affected by some outlier sectors with regard to joint emission-productivity dynamics. Services tend to present stronger delinking patterns across emissions than manufacturing. Trade expansion validates the pollution haven in some cases, but also show negative signs when only EU15 trade is considered: this may due to technology spillovers and a positive ‘race to the top’ rather than the bottom among EU15 trade partners. General R&D expenditure show weak correlation with emissions efficiency. EKC and IPAT derived models provide similar conclusions overall. Finally, we used SUR estimators (Seemingly Unrelated Regressions) for EKC models on manufacturing to have more efficient panel estimates (constrained model) and to test for slope heterogeneity (unconstrained model): the empirical evidence for CO2 and SOx emissions suggests that of manufacturing the slope varies across sectors. Further research should be directed towards deeper investigation of trade relationship at sector level and increased research into and efforts to produce specific sectoral data on ‘environmental innovations’. |
| Keywords: | NAMEA; trade openness; labour productivity; STIRPAT; SURE |
| JEL: | Q55 C23 Q56 O40 |
| Date: | 2009–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17903&r=eff |
| By: | Massimo Filippini (Center for Energy Policy and Economics CEPE, Department of Managment, Technology and Economics, ETH Zurich, Switzerland); Lester Hunt (Surrey Energy Economics Centre (SEEC) and Research Group on Lifestyles Values and Environment (RESOLVE), Department of Economics, University of Surrey, UK) |
| Abstract: | This paper attempts to estimate a panel ‘frontier’ whole economy aggregate energy demand function for 29 countries over the period 1978 to 2006 using stochastic frontier analysis (SFA). Consequently, unlike standard energy demand econometric estimation, the energy efficiency of each country is also modelled and it is argued that this represents a measure of the underlying efficiency for each country over time, as well as the relative efficiency across the 29 OECD countries. This shows that energy intensity is not necessarily a good indicator of energy efficiency, whereas by controlling for a range of economic and other factors, the measure of energy efficiency obtained via this approach is. This is, as far as is known, the first attempt to model energy demand and efficiency in this way and it is arguably particularly relevant in a world dominated by environmental concerns with the subsequent need to conserve energy and/or use it as efficiently as possible. Moreover, the results show that although for a number of countries the change in energy intensity over time might give a reasonable indication of efficiency improvements; this is not always the case. Therefore, unless this analysis is undertaken, it is not possible to know whether the energy intensity of a country is a good proxy for energy efficiency or not. Hence, it is argued that this analysis should be undertaken to avoid potentially misleading advice to policy makers. |
| Keywords: | Energy demand; OECD; efficiency and frontier analysis; energy efficiency |
| JEL: | D D2 Q Q4 Q5 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:cee:wpcepe:09-68&r=eff |
| By: | Salvador Barrios; Holger Görg; Eric Strobl |
| Abstract: | We argue that the measures of backward linkages used in recent papers on spillovers from multinational companies are potentially problematic, as they depend on a number of restrictive assumptions, namely that (i) multinationals use domestically produced inputs in the same proportion as imported inputs, (ii) multinationals have the same input sourcing behaviour as domestic firms, irrespective of their country of origin, and (iii) the demand for locally produced inputs by multinationals is proportional to their share of locally produced output. We discuss why these assumptions are likely to be violated in practice, and provide alternative measures that overcome these drawbacks. Our results, using plant level data for Ireland, show clearly that the choice of backward linkage measure and thus, the assumptions behind them, matters greatly in order to draw possible conclusions regarding the existence of FDI-related spillovers. Using the standard measure employed in the literature we fail to find robust evidence for spillovers through backward linkages. However, when we use alternative measures of backward linkages that relax assumptions (i)-(iii), we find robust evidence for positive FDI backward spillover effects |
| Keywords: | multinationals, backward spillovers, productivity spillovers |
| JEL: | F23 L22 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1560&r=eff |
| By: | Rennings, Klaus; Rammer, Christian |
| Abstract: | Energy and resource efficiency innovations (EREIs) are often seen as win-win opportunities for both the economic and the environmental performance of firms. It is thus worth asking how the innovation activities and performance of firms with regard to energy and resource efficiency look like: Do EREI firms follow distinct innovation strategies? Do EREIs spur or limit innovation success? And what are the particular features of EREI firms compared to conventional innovators? Using German innovation data, we find that EREIs are determined by a larger set of technology-push and market-pull factors. On the supply side, R&D budgets, research infrastructure and networking with other firms are important factors of influence, while on the demand side increased productivity and cost reductions are decisive, as well as improved product quality. On the other hand, EREIs are complex activities which also need regulatory incentives. Although EREIs are not more successful compared to conventional innovations, they contribute substantially to the economic success of firms. |
| Keywords: | Resource efficiency,energy efficiency,environmental innovations,innovation surveys |
| JEL: | Q01 Q55 O31 O33 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:09056&r=eff |
| By: | Scorbureanu, Alexandrina Ioana |
| Abstract: | We propose the estimation of a log-log Cobb-Douglas aggregate production function for the Palestinian industry. We find that traditional OLS estimates are not reliable they are bad predictors), due to the fact that only limited is available (small samples), and variables are characterised by high variability across time. The oligopolistic structure of the manufacturing sector also contributes. We propose to use bootstrap least deviance technique and find that the estimated elasticities are both significant and robust. For time-saving purposes (being inefficient to set-up the panel dataset), we apply the model to three available cross-sections of 71 manufacturing aggregates: 2000, 2002 and 2006 and find increasing returns to scale, which are supposed to reflect the imperfect competition of the market and/or the existence of high set-up or sunk costs which are mandatory in order to produce at all. |
| Keywords: | estimation, least absolute deviance, bootstrap, production elasticities, robust coefficients |
| JEL: | N65 D24 O14 |
| Date: | 2009–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:17957&r=eff |
| By: | Judge, Lawrence J.; Lloyd, James W.; Bartlett, Paul C. |
| Abstract: | Bovine somatoropin (bST) alters total milk production and production patterns in dairy cows and understanding the economic benefits of bST for the dairy producer are critical. Holstein cows (n = 555) from four Michigan dairy farms were randomly assigned as untreated controls or to receive 500 mg of bovine somatotropin (PosilacR) administered every 14 days beginning at 63 to 69 days of lactation and continuing until approximately 21 days prior to the end of lactation or until the animal was removed from the herd. Average peak milk production was 50.8 kg / day and occurred at an average of 113 9 days of lactation for bST-treated cows while average peak production was 48.9 kg / day occurring at an average of 86.4 days of lactation for control cows; both parameters were significantly greater for bST-treated cows compared to controls. Study cows treated with bST were significantly more persistent in lactation (7% greater lactational persistency) compared to control cows. All DHIA estimates and actual milk produced were not significantly different between the study treatment groups for any of the four comparisons made (first, second, third monthly tests after bST treatment initiation and final (305-day) DHIA production estimates); however, the accuracy of DHIA production estimates was significantly affect by the amount of time elapsed since bST but became non-significant by the third DHIA test date. The use of bST changed NFI for each of the four study farms by $96.21, $3.57, $78.71 and ($7.15) per bST-treated cow, respectively during the trial period (from 63 to 305 days of lactation). The overall average change in NFI attributable to bST was $43.01 per bST-treated cow. 2 Profitability of bST use was observed to be quite variable between farms studied because many factors were found to affect the change in NFI per cow resulting from bST use; the level of production response and the price received for milk had the largest effects on the change in NFI associated with bST use; by contrast, price paid for bST itself and feed had only minimal effects on bST-associated profitability. Diseases that may be associated with bST may reduce the profitability of this product and need to be considered as a cost of bST use if present. |
| Keywords: | bovine somatotropin, dairy, net farm income, Farm Management, Livestock Production/Industries, Productivity Analysis, Research and Development/Tech Change/Emerging, |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:midasp:53966&r=eff |
| By: | Kevin Krizek; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | This paper urges that policy decisions be based on important and reliable performance measures. Robust measures that assess the performance of the transportation and land use dimensions of cities, however, are typically missing from such discussionsÑthey typically focus on congestion and mobility. The heart of approach suggested herein lies concept of accessibility: the ability of people to reach the destinations that they need to visit in order to meet their needs. By focusing on accessibilityÑrather than congestion or mobilityÑthis approach produces a more complete and meaningful picture of metropolitan transport and land use. We place accessibility in a position of prominence as a performance measure by (a) describing the use and measurement of accessibility for metropolitan areas, (b) identifying robust, concrete and practical issues about measurement of the concept, (c) and offering prescriptions for resolving measurement issues. |
| Keywords: | Accessibility, Performance Measures, Transportation, Land Use, Measures of Effectiveness. |
| JEL: | R12 R14 R41 R48 R52 R53 H11 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:accessforperformance&r=eff |
| By: | Marcus Neureiter; Peter Nunnenkamp |
| Abstract: | We draw on a recent survey of European companies to differentiate between alternative modes of international outsourcing as possible determinants of market, cost and knowledge-related aspects of the competitiveness of firms. We find that internalized modes are often superior to outside options, and using existing subsidiaries tends to be more (cost) effective than undertaking new greenfield FDI |
| Keywords: | international sourcing, FDI, competitiveness of firms, market access, cost reduction, core and support functions |
| JEL: | F23 L24 L25 |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1558&r=eff |