New Economics Papers
on Efficiency and Productivity
Issue of 2013‒01‒07
28 papers chosen by

  1. Combining farm simulation with frontier efficiency analysis By David Berre; Jonathan Vayssières; Jean-Philippe Boussemart; Hervé Leleu; Emmanuel Tillard
  2. The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data By Stephan Kampelmann; François Rycx
  4. The environmental efficiency of organic farming in developing countries: a case study from China By Huanxiu GUO; Sébastien Marchand
  5. TECHNICAL EFFICIENCY OF MACEDONIAN PIG FARMS By Petrovska, Marina; Martinovska-Stojcheska, Aleksandra; Ohlmer, Bo; Kotevska, Ana
  6. How Important is Total Factor Productivity for Growth in Central, Eastern and Southeastern European Countries? By Konstantins Benkovskis; Ludmila Fadejeva; Robert Stehrer; Julia Woerz
  7. Are Small Firms More Dependent on the Local Environment than Larger Firms? Evidence from Portuguese Manufacturing Firms By Carlos Carreira; Luís Peres Lopes
  8. Environmental and economic efficiencies in the Asia-Pacific region By Honma, Satoshi
  9. Current expenditure impact on the municipality management productivity of Nicaragua, 2007-2011 By Zuniga Gonzalez, Carlos Alberto
  10. The relationship between export status and productivity in services: A firm-level analysis for Spain By Minondo, Asier
  11. Integrating Soil Sciences into Agricultural Production Frontiers By Ekbom, Anders; Alem, Yonas; Sterner, Thomas
  12. ICT and occupation-based measures of organisational change: Firm and employee outcomes By Böckerman, Petri; Kauhanen, Antti; Maliranta, Mika
  13. Maximum Likelihood Estimator for Spatial Stochastic Frontier Models By Pavlyuk, Dmitry
  14. Cross-country difference in R&D productivity Comparison of 11 European economies By Lööf, Hans; Savin, Maxim
  15. A Tale of Two Fascisms: Labour Productivity Growth and Competition Policy in Italy, 1911-1951 By Claire Giordano; Ferdinando Giugliano
  16. Effect of Work-Life Balance Practices on Firm Productivity: Evidence from Japanese firm-level panel data By YAMAMOTO Isamu; MATSUURA Toshiyuki
  17. Micro data and macro technology By Ezra Oberfield; Devesh Raval
  18. Cyclical Variation in Labor Hours and Productivity Using the ATUS By Burda, Michael C.; Hamermesh, Daniel S.; Stewart, Jay
  19. CEO successions and firm performance in the US financial industry By Antonio Falato; Dalida Kadyrzhanova
  20. Empirical Analysis of Agglomeration Economies in Japanese Assembly-type Manufacturing Industry for 1985-2000: Using a flexible translog production function By TOKUNAGA Suminori; KAGEYAMA Masahiro; AKUNE Yuko; NAKAMURA Ryohei
  21. Bank efficiency, market concentration and economic growth in the European Union By Cândida Ferreira
  22. Modélisation non-linéaire de l'impact des TIC sur la productivité du travail By Benjamin David
  23. ECONOMIC PERFORMANCES OF DAIRY INDUSTRY IN BOSNIA AND HERZEGOVINA IN TRANSITION By Ognjenovic, Dragana; Bajramovic, Sabahudin; Nikolic, Aleksandra
  24. Airport Benchmarking and Spatial Competition: a Critical Review By Pavlyuk, Dmitry
  25. A New Converter for Establishments from Japan's Current Survey of Production and Census of Manufactures: 2005-2009 (Japanese) By KONISHI Yoko
  26. Drivers of health care expenditure: Does Baumol's cost disease loom large? By Colombier, Carsten
  27. Evaluating the Effect of Ownership Status on Hospital Quality: The Key Role of Innovative Procedures By Gobillon, Laurent; Milcent, Carine

  1. By: David Berre (IESEG School of Management (LEM-CNRS) and University of Lille, CIRAD, UMR SELMET, Lille); Jonathan Vayssières (CIRAD, UMR SELMET, Dakar, Sénégal); Jean-Philippe Boussemart (University of Lille 3 and IESEG School of Management (LEM-CNRS)); Hervé Leleu (CNRS-LEM and IESEG School of Management); Emmanuel Tillard (CIRAD, UMR SELMET, Saint-Pierre, La Réunion, France)
    Keywords: Simulation model, Optimization model, Data Envelopment Analysis, efficiency, dairy farming systems
    Date: 2012–12
  2. By: Stephan Kampelmann; François Rycx
    Abstract: We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: i) a higher level of required education exerts a significantly positive influence on firm productivity, ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and iii) additional years of under-education (among young workers) are detrimental for firm productivity.
    Keywords: Educational mismatch; Productivity; Linked panel data; GMM
    JEL: I21 J24
    Date: 2012–12–19
  3. By: Paolo Cosseddu (Cassa Depositi e Prestiti); Maria Cozzolino (Istat); Ernesto Lorenzo Felli (Università degli Studi di Roma Tre)
    Abstract: This paper concerns the potential outcome of a structural reform of Public Administration aimed at increasing efficiency in human and technological resources use. We analyze the Italian case after the reform introduced in 2009 and provide a tentative estimate of the potential increase in labor productivity stemming from the adoption of a comprehensive performance management cycle (productivity related pay, etc.) together with a widespread use of ICT. To this aim we devised both a logical scheme and a measurement procedure. A case study provides the heuristic background of our model. Specifically, we provide some measures of the "productivity gap" which emerges in our case study. Our results show that the scope for efficiency gains may be quite wide.
    JEL: H11 H83 J24 J45 J53 O31 O43
    Date: 2012
  4. By: Huanxiu GUO (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Sébastien Marchand (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: In this case study, we attempt to re-evaluate the performance of organic farming in developing countries using the indicator of Environmental Efficiency (EE) within the framework of Stochastic Frontier Analysis (SFA). A set of plot-season level panel data was collected from an NGO-led organic paddy rice project in southern China. This original dataset is used to calculate EE scores across both the organic and conventional plots. Our two-stage analysis reveals two essential points. First, in poor rural areas, organic farming doesn't systematically reduce the pure nitrogen input for paddy rice production. In order to maintain the yield, organic farmers may apply the same, or an even greater quantity of pure nitrogen than conventional farmers. Second, organic farming loses its environmental efficiency in the scaling up period due to the excessive pure nitrogen input. Therefore, we argue that beyond the simple substitution of chemical fertilizer by organic fertilizer, more sustainable organic farming necessitates additional e fforts on the control of nutrient input.
    Keywords: Organic farming;Environmental efficiency;Stochastic frontier analysis;China
    Date: 2012–12–11
  5. By: Petrovska, Marina; Martinovska-Stojcheska, Aleksandra; Ohlmer, Bo; Kotevska, Ana
    Abstract: The economic transition and market globalization processes has triggered structural changes in the Macedonian agriculture. Pig producers face challenges to meet the new market requirements and regulations which cause inefficient and less competitive production compared to foreign markets. This paper aims to identify the level of technical efficiency on pig farms in the Republic of Macedonia. Data Envelopment Analysis approach is used to measure the exact quantity of inputs used in the production in relation to a given quantity of output. Furthermore, the data are analysed by making comparative analyses of the managerial behaviour and other non-measurable variables that influence the efficiency. The results determine what managerial activities influence on the efficiency. They indicate the type and level of inputs that need to change and the quantity of output that need to increase for the farms to reach the same technical efficiency as the most successful farmers.
    Keywords: Data Envelopment Analysis, Technical efficiency, Macedonian pig farms, Farm Management, C81, D57, Q12,
    Date: 2012–10–25
  6. By: Konstantins Benkovskis; Ludmila Fadejeva; Robert Stehrer; Julia Woerz
    Abstract: The evolution of total factor productivity (TFP) is a key determinant of long-run economic growth of a country. In this paper we analyse the contributions from technological change at the industry level to an economy's aggregate growth performance. Our derivation of total TFP growth entails three major improvements over the traditional Solow residual approach. First, we allow for non-constant returns to scale as well as changes in the utilisation of input factors in our estimation of industry TFP growth. Second, we use a novel approach to aggregate TFP from industry level to macro level, which incorporates both direct and indirect effects through intermediate linkages within an economy. Third, we take account of open economy characteristics by assigning an explicit role to terms-of-trade shocks. Our calculations for the sample of 10 Eastern European EU Member States over the time period from 1995 to 2009 are based on the newly available World Input-Output Database (WIOD).
    Keywords: total factor productivity, terms of trade, utilisation, input-output table, Central, Eastern and Southeastern Europe
    JEL: C23 D24 E23 O47
    Date: 2012–12–20
  7. By: Carlos Carreira (Faculty of Ecobomics University of Coimbra and GEMF); Luís Peres Lopes (Faculty of Ecobomics University of Coimbra and GEMF)
    Abstract: This paper analyses the impact on firm-level total factor productivity of both agglomeration economies and regional knowledge, using an unbalanced panel of Portuguese manufacturing firms covering the period 1996–2004. Controlling for the endogeneity problem using the Arellano and Bond (1991) difference GMM estimator, we found that both localization and urbanization economies have a significant and positive effect on firms’ TFP, with the latter playing the most important role. Sectoral specialization economies are important for small and medium firms, but not for large firms. However, larger firms profit more from regional knowledge than smaller ones.
    Keywords: agglomeration economies, regional knowledge, total factor productivity, small firms.
    JEL: R11 R12 R15 O47
    Date: 2012–12
  8. By: Honma, Satoshi
    Abstract: This study computes and analyzes the environmental and economic efficiencies of 31 Asia-Pacific countries and regions in 2007, using the slack-based measurement (SBM) data envelopment analysis (DEA) approach. Four economies, Brunei, Macao, Samoa, and Singapore, are found to be environmentally efficient. Of this group, only Brunei and Samoa are found to be economically efficient. We subsequently examined an environmental Kuznets curve type relationship between the environmental efficiency and per capita income. The empirical results show that a U-shaped relationship exists and the turning point per capita income is 4,239 US dollar.
    Keywords: Data envelopment analysis; environmental efficiency; environmental Kuznets curve
    JEL: Q54 O4
    Date: 2012–11–30
  9. By: Zuniga Gonzalez, Carlos Alberto
    Keywords: Malmquist Index, Investment, Current expenditure, Budged, Social Impact, Population Growth, Productivity Analysis, Public Economics, F:18, Q:51, Q:56, O:13,
    Date: 2012–12–09
  10. By: Minondo, Asier
    Abstract: This paper analyzes the relationship between export status and productivity in a major service exporter, Spain, during 2001-2007. I find that exporters in the services sector are 37% more productive than non-exporters. This productivity premium is larger for firms that supply non-Internet-related services than for firms that supply Internet-related services. The results show that exporters were more productive than non-exporters before beginning to export. The results also show that exporting increases productivity growth; however, this positive shock vanishes quickly.
    Keywords: exports; services; firm-level evidence; Spain; productivity
    JEL: F23 F14 F19
    Date: 2012–12
  11. By: Ekbom, Anders (Department of Economics, School of Business, Economics and Law, Göteborg University); Alem, Yonas (Department of Economics, School of Business, Economics and Law, Göteborg University); Sterner, Thomas (Department of Economics, School of Business, Economics and Law, Göteborg University)
    Abstract: This paper integrates soil science variables into an economic analysis of agricultural output among small-scale farmers in Kenya’s highlands. The integration is valuable because farmers’ choice of inputs depends on both the status of the soil and socio-economic conditions. The study uses a stochastic production frontier in which the individual farm’s distance to the frontier depends systematically on individual factors. We show the importance of including key soil properties and find that phosphorus has a negative output elasticity, suggesting that farms may be using the wrong fertilizer mix. Hence, the central policy implication is that while fertilizers are generally beneficial, their application needs to be based on better soil information. This highlights the importance of strengthening agricultural extension, increased access to markets, and more diversified supply of production inputs.<p>
    Keywords: Soil analysis; stochastic production frontier; agricultural productivity
    JEL: Q02 Q12
    Date: 2012–12–19
  12. By: Böckerman, Petri; Kauhanen, Antti; Maliranta, Mika
    Abstract: To examine the productivity, employment and wage effects of ICT, we apply novel occupationbased measures of organisational change within firms. With these measures, we directly address the complementarities between ICT and organisational changes. Our results support the view that organisational change complements ICT investments in a productivity-enhancing manner. In particular, the ICT-driven productivity gains are associated with the destruction of routine and noninteractive tasks in an organisation. Furthermore, using longitudinal aspects of our linked employeremployee data, we find that whereas ICT does not affect the probability of an employee becoming unemployed, it has a positive impact on the wage growth of retained employees.
    Keywords: ICT; innovation; organisational change; restructuring; productivity; performance; wages
    JEL: J31 L23 J24 M51
    Date: 2012–12–17
  13. By: Pavlyuk, Dmitry
    Abstract: This research is devoted to analysis of efficiency estimation in presence of spatial relationships and spatial heterogeneity in data. We presented a general specification of the spatial stochastic frontier model, which includes spatial lags, spatial autoregressive disturbances and spatial autoregressive inefficiencies. Maximum likelihood estimators are derived for two special cases of the spatial stochastic frontier. Small-sample properties of these estimators and comparison with a standard non-spatial estimator were implemented using a set of Monte Carlo experiments. Finally, we tested our estimators on a real-world data set of European airports and discovered significant spatial components in data.
    Keywords: spatial stochastic frontier; maximum likelihood; efficiency; heterogeneity
    JEL: C51 L93 C15 C31
    Date: 2012
  14. By: Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Savin, Maxim (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper examines differences in R&D productivity across a group of geographically adjacent economies. By distributing close to 355,000 patents across 18 industries in 11 countries, we find clear and systematic country patterns when taking into account differences in industrial structure, institutional arrangements and R&D intensity. This finding supports the argument that innovation systems are important for an industry’s capacity to generate new patentable knowledge.
    Keywords: Patent; R&D; Innovation; international comparison; panel data
    JEL: L60 O33 O50
    Date: 2012–12–19
  15. By: Claire Giordano (Bank of Italy); Ferdinando Giugliano
    Abstract: This paper offers the first quantitative assessment of labour productivity dynamics within Italy's industrial sector over the period 1911-1951 and of their links with competition policy. By relying on a newly compiled dataset and on fresh labour productivity estimates, we find that the earlier period of the Fascist era was characterised by a productivity boom, which ended and was reversed following the switch to a more interventionist industrial policy. In the overall period 1911-1951, new industries did not perform any better than the old ones and labour productivity growth was explained largely by internal productivity growth within industrial sectors rather than from the contribution of structural change from old to new industries. Finally, we find that reductions in the level of competition, induced by specific policies, were associated with lower productivity growth. This paper thus casts a shadow on the optimist accounts of Fascist industrial policy and confirms the findings of a revisionist literature minimising the positive role played by the State in the earlier stages of Italian industrialization.
    Keywords: Labour productivity, competition, Great Depression
    JEL: L16 L52 N14
    Date: 2012–12
  16. By: YAMAMOTO Isamu; MATSUURA Toshiyuki
    Abstract: This paper examines how firm practices that could contribute to worker attainment of work-life balance (WLB) affect the total factor productivity (TFP) of a firm, by using panel data of Japanese firms from the 1990s. We observed a positive correlation between the WLB practices and TFP among sampled firms. However, that correlation vanished when we controlled for unobserved firm heterogeneity, and we found no general causal relationship in which WLB practices increase firm TFP in the medium or long run. For firms with the following characteristicsmdash;large, manufacturing, and have exhibited labor hoarding during recessionsmdash;we found positive and sizable effects. Since these firms are likely to incur large fixed employment costs, we infer that firms investing in firm-specific human skills or having large hiring/firing costs can benefit from WLB practices through a decrease in turnover or an increase in recruiting effectiveness.
    Date: 2012–12
  17. By: Ezra Oberfield; Devesh Raval
    Abstract: We study the implications of microeconomic heterogeneity for aggregate technology, showing that the aggregate elasticity of substitution between capital and labor can be expressed as a simple function of plant level structural parameters and sufficient statistics for plant heterogeneity. This allows for a new approach to estimating the aggregate elasticity using microeconomic data and allows us to examine how the aggregate elasticity varies over time or across countries. We then use plant level data from the Census of Manufactures to construct an aggregate elasticity of substitution for the manufacturing sector, and estimate an aggregate elasticity of approximately 0.72 in 1987. We find that the aggregate elasticity has risen over time in the US and is higher in less developed countries. These differences are quantitatively important; our estimates imply that a change in the interest rate has a 50 percent larger impact on India than the US. Finally, we measure the bias of aggregate technical change using our estimates of the aggregate elasticity, and find that the bias of technical change has increased in recent years.
    Date: 2012
  18. By: Burda, Michael C. (Humboldt University Berlin); Hamermesh, Daniel S. (University of Texas at Austin); Stewart, Jay (U.S. Bureau of Labor Statistics)
    Abstract: We examine monthly variation in weekly work hours using data for 2003-10 from the Current Population Survey (CPS) on hours/worker, from the Current Employment Survey (CES) on hours/job, and from the American Time Use Survey (ATUS) on both. The ATUS data minimize recall difficulties and constrain hours of work to accord with total available time. The ATUS hours/worker are less cyclical than the CPS series, but the hours/job are more cyclical than the CES series. We present alternative estimates of productivity based on ATUS data and find that it is more pro-cyclical than other productivity measures.
    Keywords: time use, macroeconomic fluctuations, work hours
    JEL: E23 J22
    Date: 2012–12
  19. By: Antonio Falato; Dalida Kadyrzhanova
    Abstract: This paper examines the labor market for CEOs in the financial sector from 1988 to 2007, using a new hand-collected sample of 1,655 CEO successions. We document that there is a significant role of outside successions, as about one out of two successions involves an outside hire. In addition, using difference-in-differences estimates, we study the link between the labor market for finance CEOs and firm performance. We document that (1) there is a large performance gap between inside and outside successions, as outside successions are followed by significantly larger improvements in firm performance; (2) the performance gap between outside and inside successions is larger for firms with an insider dominated board of directors; (3) the performance gap widened after an important deregulation event (the 1999 Gramm-Leach-Bliley Act). These results are robust to using a battery of firm performance measures (short-run and long-run stock market returns, and several long-run operating performance measures) and a matched sample approach to address selection issues. Overall, our findings suggest that managerial human capital is very valuable in the financial industry, and weak internal governance hurts firm performance by limiting the scope of labor market competition.
    Date: 2012
  20. By: TOKUNAGA Suminori; KAGEYAMA Masahiro; AKUNE Yuko; NAKAMURA Ryohei
    Abstract: For Japan's assembly-type manufacturing industry which is composed of general machinery, electrical machinery, equipment and suppliers, and transportation equipment for 1985-2000, we estimate flexible translog production function based on Kim (1992) and Tokunaga and Kageyama (2008) using four-digit standard industrial classification (SIC) industry panel data and Ellison and Glaeser's (1997) agglomeration and co-agglomeration indices (with different industry groups) panel data, and obtain theoretically appropriate and significant results without the homotheticity restriction. From these results, we find evidence of positive and weak agglomeration economies on production in Japanese assembly-type manufacturing industry for 1985-2000.
    Date: 2012–12
  21. By: Cândida Ferreira
    Abstract: Well-functioning financial markets and banking institutions are usually considered to be a condition favourable to economic growth. The importance of bank efficiency and bank market concentration has also been the object of discussion, with the general belief that while they are of particular relevance in the context of the European Union, there is no consensus on their specific roles. This paper aims to study the effects on economic growth of the efficiency of the banking institutions, measured through Data Envelopment Analysis (DEA), and also of the concentration of the bank markets, measured by the percentage share of the total assets held by the three largest banking institutions (C3) and the Herfindahl-Hirschman Index (HHI). Considering a panel of all 27 EU countries for the time period between 1996 and 2008, the study analyses the influence of these bank and market conditions not only on the Gross Domestic Product (GDP) but also on its components: the final consumption expenditure, the gross fixed capital formation, the export of goods and services and the import of goods and services. The main findings point to the generally positive influence of bank cost efficiency on economic growth. More precisely, this influence is statistically significant for GDP and particularly with respect to the gross fixed capital formation. With regard to the bank market concentration, a generally negative influence is revealed, not only on GDP, but also on its components and is statistically more significant for the gross fixed capital formation, as well as for the export and import of goods and services. JEL Classification: G21; F43; D4; L11
    Keywords: Bank efficiency, market concentration, economic growth, European Union.
    Date: 2012–10
  22. By: Benjamin David
    Abstract: This paper focuses on dynamic of diffusion of Information and Communications Technology (ICT) and their impact on labor productivity. Our contribution lies in taking into account the non-linearity of this relationship arguing successively integration time and a time when new productivity gains appear. The existence of this particular sequence is modeled using a Logistic Smooth Transition model (LSTR) which permits to verify the delayed effect assumed for nine of the twelve countries studied. Different values of the adjustment periods across them are related to the structural characteristics of economies considered.
    Keywords: ICT, Solow Paradox, Labor productivity, Delayed effect, LSTR model
    JEL: E22 J24 O33 O57
    Date: 2012
  23. By: Ognjenovic, Dragana; Bajramovic, Sabahudin; Nikolic, Aleksandra
    Abstract: Research within this paper was aimed to give picture of economic performance of the dairy industry based upon commonly used indicators calculated for each dairy plant in Bosnia and Herzegovina.In order to understand state of sector transition micro-level analysis was conducted on the basis of balance sheet and income statement, two main financial records, of all dairies in Bosnia and Herzegovina. Documents were obtained from agencies in charge of collecting annual financial reports of both entities in order to assure reliable data for analysis. Research was conducted for three years period (2009-2011). Analysis encompassed horizontal and vertical analysis of balance sheet and income statement. Indicators of financial stability (liquidity and indebtedness ration) and operating successfulness (efficiency, activity, productivity and profitability ratios) we calculated as well. All diaries were classified and analysed by entity and size. The analysis shown that BH dairies operate under very hard circumstances that negatively affects their operating performances. Low liquidity and profitability indicates both financial instability and poor business success. Situation is unsatisfactory in the whole countries, although slightly better in FBH than in RS. So, sector transition is far from completion, and its future characteristic will strongly depend on entrepreneurship (spirit and skills) as well as on ability to change and re-develop institutions both formal and informal (values, culture etc).
    Keywords: economic performance, dairy industry, Bosnia and Herzegovina, Agricultural Finance,
    Date: 2012–10–25
  24. By: Pavlyuk, Dmitry
    Abstract: During the last two decades the European airport industry is liberalised and turned to competitive market environment. This fact attracts an increasing scientific and practical interest to analysis of airport efficiency and its determinants, as well as different aspects of airport competition. This paper contains a critical review of existing researches in these two areas – airport efficiency and spatial competition among airports. We analysed modern approaches to airport benchmarking, their advantages and shortcomings, and systematised a wide range of related academic studies. We paid special attention to empirical researches of spatial competition as a factor affecting airport efficiency. Despite the fact of a well-developed theory of spatial competition and signs of its growing effects in the airport industry, we discovered a lack of studies devoted to the relationship between airport efficiency and spatial competition.
    Keywords: airport efficiency; benchmarking; spatial competition
    JEL: L93 D24
    Date: 2012
  25. By: KONISHI Yoko
    Abstract: In this paper, we construct a new converter that creates panel data based on all establishments subject to the Current Survey of Production (CSP) and the Census of Manufactures (CM) conducted by the Ministry of Economy, Trade and Industry during the period 2005 to 2009. We link establishments surveyed in the CSP to those in the CM via establishment codes and aggregation of names, addresses, and zip codes. The matching rate was about 89%, of which about 97% are matched on a one-to-one basis. The converter will enable us to combine detailed production data provided by the CSP with comprehensive, establishment-level production activity data for use in economic analysis including that of productivity. However, because CSP data are monthly and item-based while those of the CM are annual and plant-based, careful steps need to be taken in linking responses to the two surveys to create matched data for use in empirical research.
    Date: 2012–12
  26. By: Colombier, Carsten
    Abstract: According to Baumol (1993) health care epitomises Baumol's cost disease. Sectors that suffer from Baumol's cost disease are characterised by slow productivity growth due to a high labour coefficient. As a result, unit costs of these sectors rise inexorably if the respective wages increase with productivity growth of the progressive industries such as manufacturing. Thus, according to Baumol (1993) the secular rise in health-care expenditure has been unavoidable. This present paper demonstrates that health care is contracted by Baumol's cost disease, but only to a minor extent. Consequently, policy-makers have more leeway to curbever-increasing health-care expenditure than is suggested by Baumol (1993) and other authors. In addition, we test the implications of Baumol's cost disease for health care by avoiding the well-known flaws in constructing medical price indices. Therefore, the adjusted Baumol variable derived in this paper is also extremely appropriate to test the validity of Baumol's cost diseases of other service industries such as education or the live performing arts. Additionally, our analysis suggests that health care is rather a necessity than a luxury at the national level, which conflicts with macroeconomic evidence provided in the relevant literature. --
    Keywords: health-care expenditure,Baumol's cost disease,the macroeconomics of health care,the adjusted Baumol variable
    JEL: C23 H51 I10
    Date: 2012
  27. By: Gobillon, Laurent (INED, France); Milcent, Carine (Paris School of Economics)
    Abstract: Mortality differences between university, non-teaching public and for-profit hospitals are investigated using a French exhaustive administrative dataset on patients admitted for heart attack. Our results show that innovative procedures play a key role in explaining the effect of ownership status on hospital quality. When age, sex, diagnoses and co-morbidities are held constant, the mortality rates in for-profit and university hospitals are similar, but they are lower than in public non-teaching hospitals. When additionally controlling for innovative procedures, the mortality rate is higher in for-profit hospitals than in the two groups of public hospitals. This suggests that the quality of care in for-profit hospitals relies on innovative procedures and that, after controlling for case-mix and innovative treatments, there is a better quality of care in public hospitals.
    Keywords: hospital performance, innovative procedures, stratified duration model, hospital quality
    JEL: I12 I18
    Date: 2012–12
  28. By: Adamski, Marcin; Sobierajewska, Jolanta; Zielinski, Marek
    Abstract: The aim of this paper is the economic and financial condition of the test group of Agricultural Property Agency companies. We used horizontal and vertical analysis of profit and loss accounts and in-depth indicator analysis. We focus on the period 2001-2009, in view of the fact that it was a specific period for APA companies, mainly due to the implementation of a broad restructuring, including through substantial investments. In the analysed eight-year period (which covers the time before and after Polish accession to the EU), APA plant and animal breeding companies were characterised by a positive ratio of profitability of business activity. In respect of APA companies, an analysis of the return on equity showed that in the whole discussed period, it was characterised by a positive level. The animal breeding companies had the highest return on equity (ROE) (average of 6.1%), subsequently, plant companies had a 3.6% average, while the so-called ‘horse’ companies (horse and stallion studs) had a 0.7% average.
    Keywords: breeding companies, economic efficiency, Agribusiness, Agricultural Finance,
    Date: 2012

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