New Economics Papers
on Efficiency and Productivity
Issue of 2013‒03‒16
24 papers chosen by

  1. Parametric decomposition of the malmquist index in an output-oriented distance function: Productivity in Chinese agriculture By Yu, Bingxin; Liao, Xiyuan; Shen, Hongfang
  2. Economic Reforms and Total Factor Productivity Growth of Indian Manufacturing: An Inter-State Analysis By Arnab K. Deb; Subhash C. Ray
  3. Are large innovative firms more efficient? By Sánchez, Rosario/R; Diaz, M. Angeles
  4. Measurement of Environmentally Sensitive Productivity Growth in Korean Industries By Chung, Yeimin; Heshmati, Almas
  5. Measuring Productivity Gains from Deregulation of the Japanese Urban Gas Industry By Tanaka, Kenta; Managi, Shunsuke
  6. The StoNED Age: The Departure Into a New Era of Efficiency Analysis? – A Monte Carlo Comparison of StoNED and the “Oldies” (SFA and DEA) By Mark Andor; Frederik Hesse
  7. Innovation and productivity: evidence for 4 Latin American countries manufacturing industry By M. Constanza Demmel; Juan A. Máñez; María E. Rochina-Barrachina; Juan A. Sanchis-Llopis
  8. The role of trade in intra-industry productivity growth - the case of old and new European Union countries (1995-2007) By Aleksandra Parteka; ; ;
  9. Institutional Change and Productivity Growth in China's Manufacturing 1998-2007: the Microeconomics of Creative Restructuring By Giovanni Dosi; Jiasu Lei; Xiaodan Yu
  10. International Productivity Gaps and the Export Status of Firms: Evidence from France and Japan By Flora BELLONE; KIYOTA Kozo; MATSUURA Toshiyuki; Patrick MUSSO; Lionel NESTA
  11. A Methodology to Propose the X-Factor in the Regulated English and Welsh Water and Sewerage Companies By Alexandros Maziotis; David S. Saal; Emmanuel Thanassoulis
  12. Unobserved heterogeneous effects in the cost efficiency analysis of electricity distribution systems By Per J. Agrell; Mehdi Farsi; Massimo Filippini; Martin Koller
  13. Are low-productive exporters marginal exporters? Evidence from Germany By Wagner, Joachim
  14. The dynamic linkages among exports, R&D and productivity By Juan A. Máñez; María E. Rochina-Barrachina; Juan A. Sanchis-Llopis
  15. International R&D Spillovers: Technology Transfer vs. R&D Synergies By Alistair Dieppe; Jan Mutl
  16. The Size Distribution of Farms and International Productivity Differences By Tasso Adamopoulos; Diego Restuccia
  17. Infrastructure, Industrial Productivity and Regional Specialization in China By Jie Zhang
  18. Determinants of the Adoption of System of Rice Intesification in Tasikmalaya District, West Java Indonesia By Satya Laksana; Arie Damayanti
  19. Crime and regional growth in Italy By Lanzafame, Matteo
  20. Profit, Productivity, Price and Quality Performance Changes in the English and Welsh Water and Sewerage Companies By Alexandros Maziotis; David S. Saal; Emmanuel Thanassoulis
  21. Firm Size Distortions and the Productivity Distribution: Evidence from France By Luis Garicano; Claire LeLarge; John Van Reenen
  22. Scale Efficiency and Homotheticity: Equivalence of Primal and Dual Measures By Rolf Fare; Valentin Zelenyuk
  23. An Econometric Analysis of Agricultural Production, Focusing on the Shadow Price of Groundwater: Policies Towards Socio-Economic Sustainability. By Phoebe Koundouri; Osiel Davila; Yannis Anastasiou; Antonios Antypas; Theodoros Mavrogiorgis; Aris Mousoulides; Marianna Mousoulidou; Katerina Vasiliou
  24. Corporate governance, value and performance of firms: New empirical results on convergence from a large international database By Jackie Krafft; Yiping Qu; Francesco Quatraro; Jacques-Laurent Ravix

  1. By: Yu, Bingxin; Liao, Xiyuan; Shen, Hongfang
    Keywords: Agriculture, bias, Malmquist index, output distance function, scale efficiency, translog,
    Date: 2013
  2. By: Arnab K. Deb (University of Connecticut); Subhash C. Ray (University of Connecticut)
    Abstract: The extent to which Indian organized manufacturing performance changed after the Economic Reform of 1991 has been an important question among empirical analysts. Using input-output data from the Annual Survey of Industries for the period 1970-71 through 2007-08, this paper compares the pre- and post-reform performances of Indian manufacturing in terms of total factor productivity growth. We use the non-parametric method of Data Envelopment Analysis to construct the Biennial Malmquist Index of total factor productivity for Indian states to determine if the states have experienced improvement in manufacturing productivity during the post-reform years. Results show that at the all-India level, total factor productivity growth rate in manufacturing is higher during the post-reform period. Although the majority of states experienced accelerated productivity growth, some states experienced declines in productivity after the reforms. However, the regional variation in the rates of productivity change diminished during the post-reform years. A non-parametric decomposition of the Malmquist productivity index into its components shows that both before and after the reforms technological progress was the most important component of the manufacturing growth process.
    Keywords: Economic Reform, Total Factor Productivity, Data Envelopment Analysis, Biennial Malmquist Index
    JEL: C14 C61 D24 L60 O53
    Date: 2013–02
  3. By: Sánchez, Rosario/R; Diaz, M. Angeles
    Abstract: One of the characteristics of the Spanish economy is the high percentage of small and medium-sized firms. Size is one of the factors that condition the managerial organization of the firms and their efficiency and productivity. Moreover size has been found a highly significant variable in explaining differences in firm’s innovative activities and the returns of R&D expenditures, and it is a well-established connection between productivity and innovative activities. This paper analyses the relationship between innovative activities and size and their effect over firms’ technical efficiency and then over their productivity. We also take into account other variables that could affect the relationship between productivity and innovative activities: industrial sector, market structure, or firms’ financial conditions. The analysis could help to design political economic measures to encourage small firms’ innovation and then contribute to improve their competitiveness. We use a micro panel data set of Spanish manufacturing firms, during the period 2004–2009, to simultaneously estimate a stochastic frontier production function and the inefficiency determinants. The data source is published in the Spanish Industrial Survey on Business Strategies (Encuesta sobre Estrategias Empresariales, ESEE), collected by the Fundación SEPI. Our preliminary results show that innovative firms are more efficient than non-innovative firms; and that small and medium-sized firms’ tent to be more efficient than large firms are.
    Keywords: small firms, technical efficiency, innovative activities.
    JEL: C23 J21 L60
    Date: 2013–02–25
  4. By: Chung, Yeimin (Korea University); Heshmati, Almas (Sogang University)
    Abstract: This study measures productivity growth using the Metafrontier Malmquist-Luenberger productivity growth index (MML index) method and decomposes the index. The results are compared with those obtained from the conventional Malmquist-Luenberger (ML) productivity growth index. MML has two advantages compared with the ML index. The former is able to consider undesirable output as a by-product of production which accounts for producer group heterogeneities. As a result, it enables separation and estimation of changes in the technological gap between regional and global frontier technologies. The proposed index is employed to measure productivity growth and decompose its components in 14 Korean industrial sectors during the period between 1981 and 2007. For the purpose of detailed analysis of policy effects, the study period was divided into three decades. The results show that technology innovation can be regarded as a more important factor of productivity growth, rather than efficiency change. The chemical and Petrochemical, Machinery and Transport equipment industries are treated as global innovators in the whole period. However, the result differs according to decades. It is found that the groups with higher energy efficient technology and profitability obtain a higher productivity growth rate in comparison with their low energy efficient technology industry counterparts. Policy implications of the empirical results are discussed.
    Keywords: CO2 emission, undesirable output, DEA, Malmquist-Luenberger productivity (ML) index, Metafrontier Malmquist-Luenberger productivity (MML) index, productivity change
    JEL: D24 C61 O31 O44
    Date: 2013–02
  5. By: Tanaka, Kenta; Managi, Shunsuke
    Abstract: The Japanese government initiated a series of regulatory reforms in the mid-1990s. The Japanese urban gas industry consists of various sized private and non-private firms. Numerous previous studies find that deregulation leads to productivity improvements. We extend the literature by analyzing deregulation, privatization, and other aspects of a regulated industry using unique firm level data. This study measures productivity to evaluate the effect of the deregulation reform. Using data from 205 firms from 1993 to 2004, we find that the deregulation effect differs depending on firm size. Competitive pressure contributes to advanced productivity. The deregulation of gas sales to commercial customers is the most important factor for advancing productivity.
    Keywords: Productivity analysis, Deregulation reform, Gas industry, Proportional distance function, Natural gas
    JEL: C51 L51 L95
    Date: 2013–02
  6. By: Mark Andor; Frederik Hesse
    Abstract: Based on the seminal paper of Farrell (1957), researchers have developed several methods for measuring efficiency. Nowadays, the most prominent representatives are nonparametric data envelopment analysis (DEA) and parametric stochastic frontier analysis (SFA), both introduced in the late 1970s. Researchers have been attempting to develop a method which combines the virtues – both nonparametric and stochastic – of these “oldies”. The recently introduced Stochastic non-smooth envelopment of data (StoNED) by Kuosmanen and Kortelainen (2010) is such a promising method. This paper compares the StoNED method with the two “oldies” DEA and SFA and extends the initial Monte Carlo simulation of Kuosmanen and Kortelainen (2010) in several directions. We show, among others, that, in scenarios without noise, the rivalry is still between the “oldies”, while in noisy scenarios, the nonparametric StoNED PL now constitutes a promising alternative to the SFA ML.
    Keywords: Shopping; Efficiency; stochastic non-smooth envelopment of data (StoNED); data envelopment analysis (DEA); stochastic frontier analysis (SFA); Monte Carlo simulation
    JEL: C1 C5 D2 L5 Q4
    Date: 2013–01
  7. By: M. Constanza Demmel (Universitat de València and ERI-CES); Juan A. Máñez (Universitat de València and ERI-CES); María E. Rochina-Barrachina (Universitat de València and ERI-CES); Juan A. Sanchis-Llopis (Universitat de València and ERI-CES)
    Abstract: The literature on firm level productivity in developed countries recognizes the important role played by firm innovation activities on the evolution of firm productivity. However, the literature on this topic for developing and emerging economies is scarcer and far from conclusive. The aim of this paper is to study the innovation-productivity link at the firm level for four Latin American countries (Argentina, Mexico, Colombia and Peru) for the manufacturing sector. The paper distinguishes between different innovations types such as process and product innovations. The data used have been drawn from the World Bank panel Enterprise Surveys, which provides data for these countries for the years 2006 and 2010. Our estimation strategy follows two-steps: first, we estimate TFP measures following De Loecker (2010) approach and Wooldridge (2009) estimation procedure (this allows us to compare results both considering an exogenous or endogenous Markov process for the dynamics of productivity); and, second, we use the estimated TFPs as dependent variables in several models with innovation activities as covariates, in order to disentangle the effects of those variables on the TFP. From our results we confirm that the most productive firms self-select into innovation activities under the endogenous Markov, driven by product innovations, only for Argentina and Mexico. Further, we obtain that there are returns to innovation in terms of productivity for all innovation types, under an exogenous or endogenous Markov process but, again, only for Argentina and Mexico.
    Keywords: innovation types, Total Factor Productivity (TFP), GMM, endogenous Markov
    Date: 2013–03
  8. By: Aleksandra Parteka; (Gdansk university of Technology, Gdansk, Poland); ;
    Abstract: The purpose of this paper is to evaluate the role of trade in productivity growth in a sample of 30 sectors in 25 EU countries in the period of rapid East-West integration. Shift-share analysis is used to show that changes in value added per hour worked in these countries appear to be mainly due to positive developments (rising productivity) within single industries and only to a lower extent result from a shift towards higher productivity activities. Trade is found to be an important positive determinant of intra-industry productivity growth in European countries. Exports and imports alike can be associated with efficiency gains, but intermediate good exchange and trade with New Member States exert a particularly strong influence on intra-industry productivity growth in the EU.
    Keywords: productivity, trade, shift share analysis, European Union
    JEL: F14 F16 O47
    Date: 2013–02
  9. By: Giovanni Dosi; Jiasu Lei; Xiaodan Yu
    Abstract: This paper investigates firm-level dynamics of labour productivity in China's manufacturing sector over the 1998-2007. Underlying the aggregate evidence of dramatic growth of labour productivity, one observes a large, even if shrinking, intra-sectoral heterogeneity. A major process of both catching-up and dying out occurs among the least efficient ones. Furthermore, we explore the effect of the characteristics of firms according to the ownership and governance structure upon the productivity distributions. The transformation of domestic firms signicantly affects the decreasing dispersion of productivity. In essence the fast catching-up process entails more of a "creative restructuring" of domestic firms rather than sheer "creative destruction" and even less so an MNC-led drive.
    Keywords: Chinese industrial development, labour productivity distributions, catching-up, heterogeneity, corporate ownership
    Date: 2013–03–08
  10. By: Flora BELLONE; KIYOTA Kozo; MATSUURA Toshiyuki; Patrick MUSSO; Lionel NESTA
    Abstract: This paper provides new evidence on the international productivity gaps; this evidence is built from large scale firm-level data from the French and Japanese manufacturing industries. Our primary finding is that international productivity gaps are sensitive to the export status of firms. We establish that the productivity gap between French and Japanese exporters differs systematically from the average industry gap—this gap is wider in the industries in which Japan has a productivity lead and narrower in the industries in which France has a productivity lead. We relate this basic finding to the new models of international trade with heterogeneous firms. Under this framework, our data predict that Japanese firms, on average, face higher trade costs than French firms.
    Date: 2013–03
  11. By: Alexandros Maziotis (Fondazione Eni Enrico Mattei and Euro-Meditarranean Centre on Climate Change); David S. Saal (Aston University); Emmanuel Thanassoulis (Aston University)
    Abstract: The purpose of this paper is to develop a methodology which can be used to set X-factor under price cap schemes, when the number of observations is limited. We firstly apply a panel index approach across Water and Sewerage companies (WaSCs) over time to decompose unit-specific index number based productivity growth as a function of the productivity growth achieved by benchmark firms, and the catch-up to the benchmark firm achieved by less productive firms. We then calculate the potential productivity catch-up of laggard firms and an estimate of how the top performing company improved its productivity over time (technical change). Both estimates are used to propose X-factor for the industry over a particular period. The results indicated that significant gains in productivity occurred after 2000, when Ofwat set tighter price cap reviews in order to pass previous productivity benefits to consumers. However, average WaSC still needs to improve its productivity towards the benchmark firm (reduce their costs in real terms) by 2.69%, while the most productive firm needs to continue to improve its productivity by 0.95% over a period of five years. This technique is of great interest to researchers who are interested in developing comparative performance measurement under regulation and setting appropriate regulated prices when sample sizes are extremely limited.
    Keywords: X-factor, Productivity Decomposition, Panel Index Numbers, Regulation, Water and Sewerage Industry
    JEL: Q5
    Date: 2013–02
  12. By: Per J. Agrell; Mehdi Farsi; Massimo Filippini; Martin Koller
    Abstract: The purpose of this study is to analyze the cost efficiency of electricity distribution systems in order to enable regulatory authorities to establish price- or revenue cap regulation regimes. The increasing use of efficiency analysis in the last decades has raised serious concerns among regulators and companies regarding the reliability of efficiency estimates. One important dimension affecting the reliability is the presence of unobserved factors. Since these factors are treated differently in various models, the resulting estimates can vary across methods. Therefore, we decompose the benchmarking process into two steps. In the first step, we identify classes of similar companies with comparable network and structural characteristics using a latent class cost model. We obtain cost best practice within each class in the second step, based on deterministic and stochastic cost frontier models. The results of this analysis show that the decomposition of the benchmarking process into two steps has reduced unobserved heterogeneity within classes and, hence, reduced the unexplained variance previously claimed as inefficiency.
    Keywords: Efficiency analysis, cost function, electricity sector, incentive regulation
    JEL: L92 L50 L25
    Date: 2013–01
  13. By: Wagner, Joachim (Leuphana University, Lueneburg and CESIS, Stockholm)
    Abstract: A stylized fact from the emerging literature on the micro-econometrics of international trade and a central implication of the heterogeneous firm models from the new new trade theory is that exporters are more productive than non-exporters. It is argued that this exporter-productivity premium is due to extra cost of exporting that can be covered profitably by more productive firms only. Germany is a case in point - exporting firms from manufacturing industries are more productive than non-exporting firms from the same 4-digit industry both on average and over the whole productivity distribution. However, many firms from the lower end of this distribution are exporters. This paper report that these low-productivity exporters are not marginal exporters defined according to the share of exports in total sales, or export participation over time, or the number of goods exported, or the number of countries exported to.
    Keywords: Exports; productivity; low-productive exporters
    JEL: F14
    Date: 2013–03–05
  14. By: Juan A. Máñez (University of Valencia and ERICES); María E. Rochina-Barrachina (University of Valencia and ERICES); Juan A. Sanchis-Llopis (University of Valencia and ERICES)
    Abstract: This paper estimates a dynamic model of a firm’s decision to export and invest in R&D, in which we allow past export and R&D experience to endogenously affect productivity. In our empirical strategy we proceed in two steps: in the first step, using as starting point the traditional control approach method to estimate total factor productivity, we consider a more general process driving the law of motion of productivity in which we recognise the potential role that export and R&D experience might have in shaping future firms’ productivity, and test whether this assumption holds; in the second step, we estimate a bivariate dynamic model of the firm’s decision to invest in R&D and export, in which we analyse the linkages among investing in R&D, exporting and productivity. Using a representative sample of Spanish manufacturing firms for the period 1990- 2009 we find that both export and R&D positively affect future productivity, which will drive more firms to self-select in those activities.
    Keywords: export experience, R&D experience, endogenous Markov, Total Factor Productivity, learning-by-exporting, returns to innovation, GMM, dynamic bivariate probit
    Date: 2013–03
  15. By: Alistair Dieppe (European Central Bank); Jan Mutl (European Business School)
    Abstract: We estimate a model of international technological spillovers that allows for both international and inter-sectoral technology transfer, as well as international and intersectoral synergies in research and development (R&D). Furthermore we allow for a dynamic interaction in explaining total factor productivity (TFP). Relative to the existing literature, our model enables us make a judgment on the relative importance of the channels of international technology transmission. We find that direct technology transfer is positive while there are negative R&D spillovers. However, since R&D is found to positively affect TFP in own sector, the model implies that after accounting for both R&D and TFP spillovers, there is a total positive impact of R&D on TFP in the same sector while the overall impact of R&D on TFP in other sectors and countries is negative. Our results indicate that, by not distinguishing among different channels of transmission, some models previously estimated in the literature may suffer from omitted variable bias. JEL Classification: C21, C23, D24, O30
    Keywords: TFP, Total Factor Productivity, R&D, Research and Development, International Spillovers, Technology Transfer
    Date: 2013–01
  16. By: Tasso Adamopoulos; Diego Restuccia
    Abstract: There are striking differences in the size distribution of farms between rich and poor countries. We study the determinants of farm-size across countries and their impact on agricultural and aggregate productivity by developing a quantitative model of agriculture and non-agriculture that features a non-degenerate size distribution of farms. We find that differences in measured aggregate factors such as capital, land, and economy-wide productivity account for 1/4 of the observed differences in farm size and productivity. Farm-level policies that misallocate resources from large-productive to small less-productive farms, are prevalent in poor countries, and have the potential to account for the remaining differences. We assess the quantitative importance of misallocation in two ways. First, we construct a summary measure of farm-size distortions across countries by exploiting within-country variation in crop-specific price distortions with crop farm size. This measure and aggregate factors jointly account for more than 1/2 of the differences in size and productivity. Second, we quantify the effects of two specific policies in developing countries: (a) a land reform that imposes a ceiling on farm size and (b) a progressive land tax. We find that each individual policy generates a reduction of 3 to 7% in size and productivity.
    Keywords: Aggregate productivity, agriculture, farm-size distortions, misallocation.
    JEL: O11 O13 O4 E0
    Date: 2013–03–08
  17. By: Jie Zhang (Graduate School of Economics, Keio University)
    Abstract: Infrastructure can affect sectoral productivity and lead to industrial structure changes. Under the framework of Harrigan (1997), this study provides an empirical analysis of the effect of infrastructure on China's industry-level productivity and regional specialization during the period of 1987-2007. We calculate the total factor productivity of 9 manufacturing industries in 28 provinces and study the effects of roads networks, telecommunications, and electric power supply on regional variations in sectoral TFP. We also examine the effect of these infrastructures on the sectoral output share across provinces. By using a structure model of infrastructure accumulation and the 3SLS estimation strategy to control for endogeneity of infrastructure provisions, we find that telecommunications and electric power have positive effects on sectoral TFP performance, while road networks and telecommunications help to explain the regional comparative advantage and production specialization.
    Date: 2013–02
  18. By: Satya Laksana (Department of Agriculture Tasikmalaya); Arie Damayanti (University of Indonesia)
    Abstract: The System of Rice Intensification (SRI) has been claimed to be more productive and sustainable than conventional methods in rice production. However, in some countries like Indonesia, its adoption rate remains low. This paper explores the factors that may affect SRI adoption in Indonesia, choosing Tasikmalaya district in West Java as a case study. By using a farm-level data, this study estimates the Cobb–Douglas production function and carries out a stochastic frontier analysis to assess whether SRI is technically efficient. It is found that technical efficiency (TE) of SRI and non-SRI is 82% and 64%, respectively, and the summation of factor production coefficient in rice production function is 1.1 indicating a Constant Return to Scale (CRS) technology. Furthermore, using a Probit model, it is found that the most important determinants of SRI adoption are irrigation infrastructure availability and participation in SRI training. Policy implications are discussed.
    Keywords: System of Rice Intesification, Cobb-Douglas production function, Stochastic Frontier analysis, Probit Model, Tasikmalaya Indonesia
    JEL: Q16
    Date: 2013–03
  19. By: Lanzafame, Matteo
    Abstract: Building on standard growth-theory models, this paper provides an empirical investigation of the effects of crime on regional economic performance in Italy, as measured by labour productivity growth. Our analysis relies on a panel of annual data on the Italian regions and, contrary to previous studies in the field, adopts a flexible and efficient panel estimation approach which controls for parameter heterogeneity, cross-section dependence and variable endogeneity via mean-group estimation, multifactor modelling and Granger-causality methods. Our results strongly support the hypothesis that crime has significant negative effects on regional growth in Italy.
    Keywords: Crime, regional growth, panel data, multifactor modeling.
    JEL: C23 O40 R10
    Date: 2013–02
  20. By: Alexandros Maziotis (Fondazione Eni Enrico Mattei and Euro-Meditarranean Centre on Climate Change); David S. Saal (Aston University); Emmanuel Thanassoulis (Aston University)
    Abstract: The purpose of this paper is the evaluation of various profit drivers such as price changes, productivity changes and quality levels on the financial performance of the Water and Sewerage Companies (WaSCs) over time in the case when the number of observations is limited. We thereby follow Maziotis, Saal and Thanassoulis (2012) approach and extend it by measuring the impact of exogenous factors such as drinking water and sewerage treatment quality on profitability, productivity and price performance measures. The results suggest that while quality improvements have significantly contributed to the productivity performance of the WaSCs, they have also contributed negatively to their price performance. Overall, after 2000 steady reductions in average price performance, gains in productivity and stable economic profitability were apparent. This trend indicates Ofwat’s policy on passing productivity benefits to consumers, and sustaining stable profitability than it was in earlier regulatory periods. This technique is of great interest for both regulators and regulated companies to better identify the sources of profit variation and aid them in evaluating both the effectiveness of a regulatory price cap scheme and the performance of the regulated companies, when the sample size is extremely limited.
    Keywords: Profit Decomposition, Productivity, Price Performance, Quality Change, Panel Index Numbers, Regulation, Water and Sewerage Industry
    JEL: Q5
    Date: 2013–02
  21. By: Luis Garicano; Claire LeLarge; John Van Reenen
    Abstract: We show how size-contingent laws can be used to identify the equilibrium and welfare effects of labor regulation. Our framework incorporates such regulations into the Lucas (1978) model and applies this to France where many labor laws start to bind on firms with exactly 50 or more employees. Using data on the population of firms between 2002 and 2007 period, we structurally estimate the key parameters of our model to construct counterfactual size, productivity and welfare distributions. With flexible wages, the deadweight loss of the regulation is below 1% of GDP, but when wages are downwardly rigid welfare losses exceed 5%. We also show, regardless of wage flexibility, that the main losers from the regulation are workers (and to a lesser extent large firms) and the main winners are small firms.
    JEL: J08 L11 L25 L51
    Date: 2013–02
  22. By: Rolf Fare; Valentin Zelenyuk (CEPA - School of Economics, The University of Queensland)
    Abstract: We address the issue of equivalence of primal and dual measures of scale efficiency in general production theory framework. We find that particular types of homotheticity of technologies, which we refer to here as scale homotheticity, provide necessary and sufficient condition for such equivalence. We also identify the case when the scale homotheticity is equivalent to the homothetic structure from Shephard (1970).
    Date: 2013–02
  23. By: Phoebe Koundouri; Osiel Davila (AUEB-RC); Yannis Anastasiou (Athens University of Economics and Business); Antonios Antypas (Department of Banking and Financial Management, University of Piraeus); Theodoros Mavrogiorgis (Athens University of Economics and Business); Aris Mousoulides; Marianna Mousoulidou; Katerina Vasiliou (Athens University of Economics and Business)
    Abstract: The focus of Chapter 5 is on the agricultural sector in the Asopos catchment as it has a significant impact on the status of water in the area. In particular, the aim of the chapter is to estimate the farmers valuation of groundwater s shadow price for the region of Asopos. In order to achieve that, an agricultural micro-economic data-set from the catchment has been collected through the use of a detailed agricultural questionnaire. As it will be explained in the chapter, the questionnaire focuses on collecting information regarding cultivations, production structures and use of groundwater for irrigation. The objective of the micro-econometric analysis is to uncover patterns of groundwater use and farm efficiency. The chapter presents the derived estimates that make possible the analysis of the impact of different economic policies, -which will be used for the implementation of an optimal, sustainable and integrated water policy- on farmers profits and social welfare. The chapter finishes with policy recommendations based on the principle of socio-economic sustainability that assures both economic efficiency of farms and concludes with the estimation of groundwater for irrigation shadow price and how this can be used in the design of pumping taxes to reduce pollution and to increase farms efficiency.
    Date: 2013–03–06
  24. By: Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Yiping Qu (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)); Jacques-Laurent Ravix (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS))
    Abstract: This paper aims to revisit the link between corporate governance, value, and firm performance by focusing on convergence, understood as the way that non-US firms are adopting US best practice in terms of corporate governance, and the implications of this adoption. We examine theoretical questions related to conventional models (agency theory, transaction cost economics, new property rights theory),which tend to suggest rational adoption of best practice, and contributions that alternatively consider country- and firm-level differences as possible barriers to convergence. We contribute to the empirical literature by using a large international database to show how non-US firms' adoption of US best practice is having an impact on performance.
    Keywords: Corporate governance; governance metrics, ratings, rankings and scoring; firm value; firm performance
    Date: 2013–02–09

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