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on Efficiency and Productivity |
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Issue of 2013‒02‒16
24 papers chosen by |
| By: | Qushim, Berdikul; Gillespie, Jeffrey M.; Nehring, Richard F. |
| Abstract: | The objective of this study is to assess the scale and technical efficiencies and other economic performance measures of southeastern U.S. cow-calf farms. We describe and compare cow-calf operations by size and farm resource region and measure their relative competitiveness. We estimate an input distance function using stochastic production frontier techniques (SPF). |
| Keywords: | Cow-calf, performance measures, scale efficiency, technical efficiency, Farm Management, Livestock Production/Industries, Production Economics, Productivity Analysis, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143009&r=eff |
| By: | PINTO, Claudio (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy) |
| Abstract: | Background: Data envelopment analysis (DEA) and the Malmquist index are frequently used in the hospital sector to measure efficiency. However, very few works are published for Italian hospitals, despite the fact that efficiency was the main driver guiding healthcare reform in the 1990s. Objectives: The objective of this study is derive technical efficiency and change in productivity of the Local Health Trust (LHT) in directly managed Italian hospitals. We will also explore whether the complexity of treated hospitals cases influences technical efficiency. Methods/approaches: The DEA technique and DEA-Malmquist index are used to derive technical efficiency, and changes in productivity and efficiency, for directly managed hospitals in Italy's public healthcare system. To control for the influence of the complexity of the treated cases on the technical efficiency, two DEA input models are examined. One of these models, weighs outputs with a case mix index (CMI) as a measure of the complexity of hospital treatment. Results: The results show that efficiency in the model not adjusted is on average 79,52% compared to 81,55 % efficiency in Model B (output adjusted with CMI), in efficiency level. In mean complexity of treatment, as measured with CMI, influence technical efficiency, as indicate in Table 5 and 6. Statistics tests reveal differences in the efficiency score distribution for Model A and Model B (adjusted). The influence of complexity of treatment on technical efficiency analysis, has hospital individual relevance. The Malmquist index reveals productivity improvement for 7 out of the 8 periods measured. Technical efficiency change is positive (improvement) between 2000 and 2005, and fall in 2006 and 2007. Technological change is positive in 1999-2000, 2000-2001, 2002-2003, 2005-2006, 2006-2007. Scale efficiency improves in 2000-2001, 2001-2002,2003-2004, 2004-2005. Practical implications: Between 1999 and 2007, for the sample, improved productivity was examined and attributed to an input reduction of the same output. This could mean that the reforms that took place in the 1990s were successful and that this direction is worth further pursuit. In light of these findings, one must make policy recommendations with caution, despite the fact, the complexity of treatments influence technical efficiency, hence the proportional reduction of the inputs vector. |
| Keywords: | Technical Efficiency; Productivity; Data Envelopment Analysis; DEA-Malmquist Index; Case Mix Index; Directly Managed Hospitals; |
| JEL: | C14 C33 D22 I12 |
| Date: | 2013–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0124&r=eff |
| By: | Mendali, Rebati; Ames, Glenn C.W.; Gunter, Lewell F. |
| Abstract: | We measure Malmquist index of total factor productivity (TFP) changes in the agricultural sector of Brazil and Argentina during 1971-2002. The TFP change index is further decomposed into efficiency change and technical change. We then compare the cumulative TFP growth and its components in both countries. Results show that agricultural TFP change as well as efficiency and technical change accelerated in Brazilian agriculture, where as Argentinean agriculture experienced a negative trend in TFP growth over the sample period. Efficiency change in Argentina’s agriculture was found to be stagnant over time. The increasing productivity in Brazil is due to strong policy reform in 1980s. Argentina’s imbalanced economy, including biased reforms explains the negative TFP growth and technical regress during this period. |
| Keywords: | Total Factor Productivity, Data Envelopment Analysis, Agriculture in Brazil and Argentina, Policy Reform, Agricultural and Food Policy, International Development, Productivity Analysis, C61, O47, O57, Q16, Q18, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143036&r=eff |
| By: | Langemeier, Michael R.; Yeager, Elizabeth A.; O'Brien, Daniel M. |
| Abstract: | This paper examined the relationship between cost efficiency and feed grain production in Kansas. Using data from 2002 to 2011, corn production was significantly and positively related to cost efficiency in eastern and western Kansas, while grain sorghum production was significant and positively related to cost efficiency in central Kansas. |
| Keywords: | efficiency, corn, grain sorghum, Farm Management, Production Economics, Productivity Analysis, D24, Q12, |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142394&r=eff |
| By: | Dutz, Mark A.; O'Connell, Stephen D. |
| Abstract: | This study investigates the impact of key business environment indicators on productivity, innovation, and growth in Sri Lanka through a cluster-level productivity analysis, a firm-level total factor productivity analysis, and a firm-level innovation analysis. For the cluster-level productivity analysis (as measured by output and value added per worker), it combines two established data sources in a novel way by importing average'industry-size-location'cluster-level business environment variables from the World Bank Enterprise Survey to the comprehensive Sri Lanka Census of Industry productivity data available for similar clusters of enterprises. For the firm-level total factor productivity analysis, it compares data from the 2011 World Bank Enterprise Survey with those from 2004. For the firm-level innovation analysis, it compares findings from the 2011 World Bank Enterprise Survey with a representative sample of enterprises collected as part of the Sri Lanka Longitudinal Survey of Enterprises. The empirical findings highlight the importance -- for cluster-level productivity, firm-level total factor productivity, and innovation -- of connectivity to global knowledge (reflected by one or more of export participation, directly imported inputs, foreign ownership, and use of the internet), availability of skills, access to finance, and competition. The paper also presents evidence, under the assumption that the samples are statistically representative, that both allocative and average technical efficiency have improved, with allocative efficiency increasing roughly four-fold between 2003 and 2010, and accounting for the overwhelming share of the aggregate increase in total factor productivity over this time period. Most of the improvement in allocative efficiency has occurred among larger firms, and in large rather than small cities. |
| Keywords: | Environmental Economics&Policies,E-Business,Labor Policies,Economic Theory&Research,Knowledge for Development |
| Date: | 2013–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6354&r=eff |
| By: | Mekonnen, Dawit Kelemework; Dorfman, Jeffrey; Fonsah, Esendugue Greg |
| Abstract: | We estimate a distance function of grains production using generalized method of moments that enables us to accommodate multiple outputs of farmers as well as address the endogeneity issues that are related with the use of distance functions for multi-output production. Using a panel data set of Ethiopian subsistence farmers, we find that the most important factors determining farmers' efficiency in Ethiopia are having access to the public extension system, participation in off-farm activities, participation in labor sharing arrangements, gender of the household head, and the extent to which farmers are forced to produce on marginal and steeply sloped plots. Average farmers in Ethiopia are producing less than 60% of the most efficient farmers. Annual technical change between 1999 and 2004 is about one percent while annual efficiency change during the same period is insignificant. |
| Keywords: | Distance Function, Productivity, Efficiency, GMM, Ethiopia, Agricultural and Food Policy, Crop Production/Industries, Farm Management, Food Security and Poverty, International Development, Production Economics, Productivity Analysis, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143038&r=eff |
| By: | Halkos, George; Tzeremes, Nickolaos |
| Abstract: | In this paper we apply an additive two-stage data envelopment analysis (DEA) estimator on a panel of 27 Annex I countries for the time period 2006-2010 in order to create sustainability efficiency indexes. The sustainability efficiency indexes are decomposed into economic and eco-efficiency indicators. The results reveal inequalities among the examined countries between the two stages. The eco-efficiency stage is characterized by large inequalities among countries and significantly lower efficiency scores than the overall or/and the economic efficiency stages. Finally, it is reported that a country’s high economic efficiency level does not ensure a high eco-efficiency performance. |
| Keywords: | Additive two-stage DEA; Sustainability efficiency index; Annex I countries |
| JEL: | Q50 C14 O44 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:44231&r=eff |
| By: | Giulio Bottazzi; Marco Grazzi |
| Abstract: | This paper studies the impact of size on labor cost and productivity for Italian man- ufacturing firms. The distributions of both labor cost and productivity display a wide support, even when disaggregated by sector of industrial activity. Further, both labor cost and productivity, when considered alone, are growing with the size of the firm. We investigate this relationship on a new set of data and we are able to show that once ac- counted for productivity differences among firms, size still retains a positive effect on cost of labor in most of the sectors considered. |
| Keywords: | Size-wage effect; Labor productivity |
| Date: | 2013–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2013/02&r=eff |
| By: | Li, Xiaofei; Yu, Yingzhuo; Escalante, Cesar L.; Deng, Xiaohui; Epperson, James E. |
| Abstract: | Stochastic frontier analysis is used to evaluate the technical and allocative efficiencies for banks classified based on industry specialization (agricultural and non-agricultural banks) and solvency condition (non-critical and critical banks). The analytical framework allows for comparisons of input utilization decisions that could translate to cost savings and enhanced operating efficiencies. |
| Keywords: | Input Distance Function, Technical Efficiency, Allocative Efficiency, Recession, Agricultural Finance, Q14, R15, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142989&r=eff |
| By: | Sujarwo; Saghaian, Sayed H. |
| Abstract: | This study attempts to contribute to poverty alleviation through increasing efficiency of input allocation which can raise profit of the small scale farmers without changing the technology they use. Accordingly, this study addresses the problem of allocative inefficiency and profit gap of the farmer’s shallot production. Double-log production function and polynomial cost function are applied to measure the profit gap analysis. The empirical results from double-log production function confirm that land, labor, fertilizer, and pesticide are allocated by farmers inefficiently. Furthermore, three simulations for efficient inputs allocation and profit gap analysis are taken into account based on the costs level spent by the farmers. The result shows that profit gaps are 4.72 percent, 13.96 percent and 17.92 percent for low, middle, and high input costs level, respectively. |
| Keywords: | Shallot production, double-log production, polynomial cost function, efficient input allocation, profit gap, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142550&r=eff |
| By: | TANAKA Ayumu |
| Abstract: | Recent works show that wholesale exporters play a large role in international trade. Wholesalers provide intermediate services for manufacturers and account for a substantial portion of total export values for Italy, Japan, and the United States. This study seeks to provide the first evidence on the link between firm productivity and exports by wholesalers, using Japanese firm-level data. Empirical analysis reveals that wholesale firms are heterogeneous and that exporters are more productive than non-exporters in the wholesale sector, as is seen in the manufacturing sector. In addition, the analysis provides the evidence that exporters with foreign subsidiaries tend to be more productive than those without and that they outperform the latter in terms of other measures such as average exports, export-sales ratio, and the extensive margin of exports. These results are in line with the firm heterogeneity model of exports and are similar with the previous empirical studies on manufacturing. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13007&r=eff |
| By: | Oswald, Andrew (University of Warwick); Proto, Eugenio (University of Warwick); Sgroi, Daniel (University of Warwick) |
| Abstract: | Some firms say they care about the happiness and ‘well-being’ of their employees. But are such claims hype? Or might they be scientific good sense? This study provides evidence that happiness makes people more productive. First, we examine fundamental real-world shocks (bereavement and family illness) imposed by Nature. We show that lower happiness is associated with lower productivity. Second, within the laboratory, we design two randomized controlled trials. Some individuals are deliberately made happier, while those in a control group are not. The treated individuals have 10-12% greater productivity than those in the control group. These complementary kinds of evidence, with their different strengths and weaknesses, point to a consistent pattern. They suggest that happiness raises human performance. |
| Keywords: | Happiness; well-being; productivity; personnel economics. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:107&r=eff |
| By: | Brown, W. Mark<br /> Rigby, David |
| Abstract: | There is abundant evidence that many firms cluster together in space and that there is an association between clustering and productivity. This paper moves beyond identifying the broad effects of clustering and explores how different types of firms benefit from agglomeration. It advances research on agglomeration by showing, first, that not all firms gain to the same degree from co-location and, second, that businesses with different internal capabilities capture different forms of geographical externalities. The empirical analysis focuses on Canadian manufacturing establishments operating over the period from 1989 to 1999. |
| Keywords: | Manufacturing, Business performance and ownership, Economic accounts, Business ownership, Productivity accounts |
| Date: | 2013–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp5e:2013084e&r=eff |
| By: | Nehring, Richard F.; Gillespie, Jeffrey M.; Harris, Michael; Hallahan, Charles B.; Erickson, Kenneth W.; Leibold, Kelvin |
| Abstract: | US swine production has undergone significant structural change in the last two decades, reflecting increasing size and specialization (Key and McBride; Key). In particular, the widespread use of contracting has enabled individual producers to grow by specializing in a single phase of production. Once dominated by small operations that practiced crop and hog farming along with other livestock enterprises, the industry has increasingly concentrated among large operations in most regions that produce hogs on several different sites (especially in North Carolina). Survey results for 2008-2011 indicate that some independent hog producers remain competitive, suggesting the rate of sharp decline in independent hog production that took place between 1992 and 2004 may have slowed. In future research we will sort on DuPont results more thoroughly to account for differences in organizational arrangement—whether farrowing or not---as production contracts tend to be much more prevalent on finish operations. |
| Keywords: | hogs, contract, DuPont, Farm Management, Financial Economics, Productivity Analysis, |
| Date: | 2013–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142982&r=eff |
| By: | ITO Banri; TANAKA Ayumu |
| Abstract: | This paper empirically examines the relation between a firm's productivity and its joint decision of research and development (R&D) strategy and exporting, based on Japanese firm-level data and the simple theoretical framework that extends the firm heterogeneity model so that both internal and external (outsourcing or technology purchase) R&D strategies are taken into account. The empirical results from nonparametric and semiparametric methods show that exporting firms engaged in R&D activities are more productive than non-exporters and exporters with no R&D, regardless of whether internal or external R&D strategy is adopted, and that exporters which employ both R&D strategies are the most productive. The results suggest that an open innovation strategy is complementary to an in-house R&D strategy and is crucial for further promoting innovation for internationalized firms. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13006&r=eff |
| By: | Hristovska, Tatjana; Watkins, K. Bradley; Mazzanti, Ralph; Wilson, Charles E., Jr. |
| Abstract: | Arkansas is the top domestic rice producer, representing nearly half of total U.S. rice production. Rice is a high-cost crop relative to other field crops in Arkansas, and production costs for rice have increased significantly since the mid 2000s due to rapidly increasing fuel and fertilizer prices. More efficient rice production management is pertinent to maintaining long term profitability. This study assesses the important factors leading to higher technical, allocative, and economic (cost) efficiency in rice production using a Tobit model. The data is obtained from the 2005-2011 Rice Research and Verification Program (RRVP). Using a Clearfield hybrid seed was found to have positive statistically significant effect, as well as relatively large marginal effect on all three efficiencies. |
| Keywords: | Efficiency, rice, factors, clearfield, multiple inlet, Arkansas, Farm Management, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143042&r=eff |
| By: | Godart, Olivier (Kiel Institute for the World Economy); Görg, Holger (Kiel Institute for the World Economy) |
| Abstract: | Using information on more than 1000 firms in a number of emerging countries, we find quantitative evidence that suppliers of multinationals that are pressured by their customers to reduce production costs or develop new products have higher productivity growth than other firms, including other host country suppliers of multinationals. These findings provide first empirical support for a "forced linkage effect" from supplying multinational companies. Our findings hold controlling for other factors within and outside the supplier-customer relationship and when endogeneity concerns are taken into consideration. |
| Keywords: | backward linkages, multinational customers, suppliers, forced linkage, productivity spillovers |
| JEL: | F23 O12 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7173&r=eff |
| By: | Carlos Sánchez-González (Department of Accounting and Finance, Faculty of Economics and Business Studies, Universidad de Zaragoza); José Luis Sarto (Department of Accounting and Finance, Faculty of Economics and Business Studies, Universidad de Zaragoza); Luis Vicente (Department of Accounting and Finance, Faculty of Economics and Business Studies, Universidad de Zaragoza) |
| Abstract: | This paper is the first analysis of the efficiency of Mutual Funds companies in Europe. Based on the recent approach of Holod and Lewis (2011), our paper overcomes some of the potential limitations of the DEA methodology by applying the variations to the slacks-based measure (Tone, 2010). Our fund-company model questions the significant role of the portfolio management activities of the company in the distribution results and therefore in the final profits obtained by the company shareholders. Finally, the application of SBM Variation III finds several globally inefficient but locally efficient companies according to standardized size of competitors. |
| Keywords: | Mutual funds companies, Efficiency, DEA, SBM, Sub-Stages approach |
| JEL: | G20 G23 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:zar:wpaper:dt2013-01&r=eff |
| By: | Gao, Zhifeng; Moss, Charles B. |
| Abstract: | The dual relationship between parameters of normalized quadratic cost and profit functions is determined when firms can implement market power on the output market. An approach is developed to test the market power by comparing the profits of a firm with and without market power. Simulations demonstrate the efficiency of this approach. |
| Keywords: | Normalized quadratic cost function, Normalized quadratic profit functions, Duality, Market power, Production Economics, |
| Date: | 2013–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143105&r=eff |
| By: | Ivo Bischoff; Peter Bönisch; Peter Haug; A. Illy |
| Abstract: | This paper analyses the impact of vertical grants on local public sector efficiency. First, we develop a theoretical model in which the bureaucrat sets the tax price while voters choose the quantity of public services. In this model, grants reduce efficiency if voters do not misinterpret the amount of vertical grants the local bureaucrats receive. If voters suffer from fiscal illusion, i.e. overestimate the amount of grants, our model yields an ambiguous effect of grants on efficiency. Second, we use the model to launch a note of caution concerning the inference that can be drawn from the existing cross-sectional studies in this field: Taking into account vertical financial equalization systems that reduce differences in fiscal capacity, empirical studies based on cross-sectional data may yield a positive relationship between grants and efficiency even when the underlying causal effect is negative. Third, we perform an empirical analysis for the German state of Saxony-Anhalt, which has implemented such a fiscal equalization system. We find a positive relationship between grants and efficiency. Our analysis shows that a careful reassessment of existing empirical evidence with regard to this issue seems necessary. |
| Keywords: | vertical grants, local public finance, efficiency, DEA, bureaucracy |
| JEL: | H11 H72 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:1-13&r=eff |
| By: | Henrik Braconier; Mauro Pisu; Debra Bloch |
| Abstract: | Despite the economic importance of the road transport sector, there is no systematic cross-country evidence on the sector’s efficiency. This paper develops a conceptual framework for analysing the social efficiency of the road transport sector, including non-market inputs – such as travel time – and negative outputs – such as accidents and emissions. This framework is then used to analyse efficiency in 32 OECD countries. Data issues in terms of availability, quality and comparability are significant, and the empirical results have to be interpreted with caution. Nevertheless, there is fairly robust evidence that social efficiency is low in a number of OECD countries. The low efficiency suggests that substantial room for input savings exists in these countries. A framework for analysing how road transport policies may impact performance is developed, but a scarcity of data on policy settings currently limits the scope for empirically connecting the two.<P>Infrastructures de transport routier : performance et politiques économiques<BR>Malgré l’importance économique des transports routiers, les données sur l’efficience du secteur ne font l’objet d’aucune comparaison systématique entre les pays. Dans ce document, il est présenté un cadre conceptuel pour l’analyse de l’efficacité sociale du secteur des transports routiers, englobant des intrants non marchands (comme les temps de trajet) et des extrants négatifs (comme les accidents et les émissions). Il est ensuite recouru à ce cadre pour comparer la situation dans 32 pays de l’OCDE. D’importants problèmes se posent en termes de disponibilité, de qualité et de comparabilité des données et les résultats empiriques doivent être interprétés avec circonspection. Néanmoins, des éléments assez convaincants attestent la faiblesse de l’efficacité sociale dans un certain nombre de pays de l’OCDE, ce qui donne à penser qu’il y existe de grandes possibilités d’économies d’intrants. Il a été entrepris de définir des principes de base à suivre pour analyser les conséquences que les politiques des transports routiers peuvent avoir sur la performance, mais, faute de données suffisantes sur les cadres d’action, il n’est actuellement guère possible d’établir un lien empirique entre les deux analyses. |
| Keywords: | efficiency, infrastructure, road, benchmarking, DEA, transport policy, infrastructure, efficacité, politiques de transport, comparaison, analyse DEA, routes |
| JEL: | D61 D62 H41 H54 |
| Date: | 2013–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1016-en&r=eff |
| By: | Garcia Suarez, Federico |
| Abstract: | The objective of the paper is to provide an estimate of the use value of the High Plains aquifer in agriculture. A region-wide production function for the crop sector is estimated. Using the production response to irrigation we estimate the value of groundwater for agriculture in $231/acre at 2007 prices. |
| Keywords: | Production function, water, use value., Production Economics, Q15, Q25, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:142696&r=eff |
| By: | Wignaraja, Ganeshan (Asian Development Bank Institute); Krüger, Jens (Asian Development Bank Institute); Tuazon, Anna Mae (Asian Development Bank Institute) |
| Abstract: | Cross-border production networks have been playing an increasingly important role in the Association of Southeast Asian Nations (ASEAN) countries’ trade in recent years, but micro-level studies are rare. This paper uses firm-level data from the two most active ASEAN countries in production networks (Thailand and Malaysia) and examines the effect of participating in production networks on profits and technological capabilities of firms. The empirical results show that participating in production networks raises profits. The evidence further suggests that participation in production networks is also positively correlated with technology upgrading, measured by a technological capabilities index. |
| Keywords: | production networks; regional integration; material outsourcing; technology upgrading; malaysia; thailand |
| JEL: | F10 F23 O14 |
| Date: | 2013–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0406&r=eff |
| By: | Jones, Kelly J.; Lust, David G.; Brooks, Kathleen R.; Vestal, Mallory K. |
| Abstract: | During extreme drought, grazing is unavailable and hay is expensive. Feed and labor costs in confinement cow-calf systems using concentrate diets are not well established. Cows were wintered in semi-confinement and costs determined. Results indicate that high concentrate confinement systems diets may provide alternatives to forage based cow-calf systems. |
| Keywords: | Confinement cow-calf systems, cow cost, drought management, Farm Management, Livestock Production/Industries, Production Economics, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saea13:143089&r=eff |