nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2013‒06‒04
37 papers chosen by
Angelo Zago
University of Verona

  1. Assessing the impact of crop specialization on farms’ performance in vegetables farming in Benin: a non-neutral stochastic frontier approach By Singbo, Alphonse G.; Emvalomatis, Grigorios; Alfons, Oude Lansink
  2. Dynamic Efficiency Measurement: A Directional Distance Function Approach By Elvira Silva; Alfons Oude Lansink
  3. Unobserved heterogeneous effects in the cost efficiency analysis of electricity distribution systems By AGRELL, Per; FARSI, Mehdi; FILIPPINI, Massimo; KOLLER, Martin
  4. Investment and Efficiency under Incentive Regulation: The Case of the Norwegian Electricity Distribution Networks By Rahmatallah Poudineh; Tooraj Jamasb
  5. Efficiency spillovers from FDI in the Indian machinery industry: a firm-level study using panel data models By Keshari, Pradeep Kumar
  6. Researchers’ mobility and its impact on scientific productivity By Fernández-Zubieta,Ana; Geuna, Aldo; Lawson, Cornelia
  7. Centralized resource reduction and target setting under DEA control By HOSSEINZADEH LOTFI, Farhad; HATAMI-MARBINI, Adel; AGRELL, Per; GHOLAMI, Kobra
  8. Evaluating Agricultural Productivity’s Impact on Food Security By Rada, Nicholas E.; Rosen, Stacey; Beckman, Jayson
  9. Dynamic Models of R&D, Innovation and Productivity: Panel Data Evidence for Dutch and French Manufacturing By Wladimir Raymond; Jacques Mairesse; Pierre Mohnen; Franz Palm
  10. Agricultural Growth in India: Examining the Post-Green Revolution Transition By Rada, Nicholas E.
  11. Demand pull and technological flows within innovation systems: the intra-European evidence By Antonelli,Cristiano; Gehringer, Agnieszka
  12. Firm-Level Productivity Spillovers from FDI in Latin American Countries By Muehlen, Henning
  13. The impact of forecasting errors on warehouse labor efficiency: A case study in consumer electronics By Kim, T.Y.; Dekker, R.; Heij, C.
  14. University-industry relations and the evolution of knowledge governance. the italian evidence in the first part of the xx century By Antonelli, Cristiano; Fassio, Claudio
  15. Capital Structure, Product Market Competition and Firm Performance: Evidence from South Africa By Samuel Fosu
  16. An Exploratory Evaluation of State Road Provision to Commuters and Shippers using Data Envelopment Analysis and Tobit Regression By Min, Hokey; Lambert, Thomas
  17. Cross Country Analysis of Farm Economic Performance By Shingo Kimura; Christine Le Thi
  18. Does Input-Trade Liberalization Affect Firms' Foreign Technology Choice? By Maria Bas; Antoine Berthou
  19. Internal and external factors in innovation persistence By Antonelli, Cristiano; Crespi, Francesco; Scellato, Giuseppe
  20. Benchmarking and regulation By AGRELL, Per; BOGETOFT, Peter
  21. What Are Error Rates for Classifying Teacher and School Performance Using Value-Added Models? By Peter Z. Schochet; Hanley S. Chiang
  22. Robustness, outliers and Mavericks in network regulation By AGRELL, Per; NIKNAZAR, Pooria
  23. Agricultural Diversification and Beekeeping: A Study of Rural Ethiopian Farmers By Josephson, Anna Leigh
  24. A firm level study of the determinants of export performance in machinery and transport equipment industry of India By Keshari, Pradeep Kumar; Saggar, Mridul
  25. Agriculture's Supply and Demand for Energy and Energy Products By Beckman, Jayson; Borchers, Allison; Jones, Carol
  26. Comparative performance of foreign affiliates and domestic firms in the Indian machinery industry By Keshari, Pradeep Kumar
  27. What factors determine membership to farmer groups in Uganda? Evidence from the Uganda Census of Agriculture 2008 2008/9 By Adong, Annet; Mwaura, Francis; Okoboi, Geofrey
  28. Has Europe been catching up? An industry level analysis of venture capital success over 1985 - 2009 By Kräussl, Roman; Krause, Stefan
  29. Performance measurement and management with financial ratios: the BASF SE case By Schönbohm, Avo
  30. The mechanisms of knowledge governance: State owned enterprises and Italian economic growth, 1950-1994 By Antonelli, Cristiano; Barbierini Amidei, Federico; Fassio, Claudio
  31. L'établissement d'enseignement fréquenté par les élèves a-t-il un impact sur leur performance ? By OCDE
  32. The Effects of Exports on Facility Environmental Performance: Evidence from a Matching Approach By Cui, Jingbo; Qian, Hang
  33. Beyond the Inducement in Climate Change: Do Environmental Performances Spur Enrivornmental Technologies? A Regional Analysis of Cross-Sectoral Differences By Claudia Ghisetti; Francesco Quatraro
  34. Structural change, dualism and economic development : the role of the vulnerable poor on marginal lands By Barbier, Edward B.
  35. “Firm exports, innovation, … and regions” By Enrique López-Bazo; Elisabet Motellón
  36. Industry, firm, year and country effects on profitability in EU food processing By Jan Schiefer; Stefan Hirsch; Monika Hartmann; Adelina Gschwandtner
  37. Analysis of the Variation in Efficiency of Medicare Advantage Plans. By Marsha Gold; Maria Cupples Hudson

  1. By: Singbo, Alphonse G.; Emvalomatis, Grigorios; Alfons, Oude Lansink
    Abstract: A non-neutral stochastic distance function model is used to examine whether output specialization has an impact on the economic performance of vegetable producers in Benin. Specialization is assumed to have an effect on the production frontier and on the distance to the production frontier (technical inefficiency). The technology is found to exhibit diseconomies of scope, indicating that vegetable producers have an incentive for specialization. At the same time, the degree of specialization has a positive effect on technical efficiency. From a policy perspective, the findings imply that current government policies to encourage diversification may lead to a lower performance.
    Keywords: Farm performance, Specialization, Impact, Input distance function, Non-neutral stochastic frontier, Benin, Agricultural and Food Policy, Crop Production/Industries, Farm Management, Food Security and Poverty, Production Economics, Productivity Analysis, C34, C52, Q12, Q16,
    Date: 2012
  2. By: Elvira Silva (Faculdade de Economia do Porto, cef.up, University of Porto); Alfons Oude Lansink (Department of Social Sciences, Wageningen University)
    Abstract: A dynamic directional input distance function is proposed within the adjustment-cost model of the firm, generalizing the directional distance function developed by Chambers, Chung and Färe (1996) in the static context. Duality is established between the dynamic directional distance function and the optimal current value function of the intertemporal cost minimization problem. Dynamic input efficiency measures are generated from the dynamic directional input distance function and intertemporal duality. These efficiency measures indicate the firm’s degree of efficiency at a point along its adjustment path. The dynamic efficiency measures are illustrated on panel data of Dutch glasshouse horticulture firms using a nonparametric approach. Keywords and Phrases: adjustment-cost technology, dynamic directional input distance function, dynamic duality, dynamic cost efficiency.
    Keywords: adjustment-cost technology, dynamic directional input distance function, dynamic duality, dynamic cost efficiency
    JEL: D21 D24 D61 D92
    Date: 2013–05
  3. By: AGRELL, Per (Université catholique de Louvain, CORE and Louvain School of Management, Belgium); FARSI, Mehdi (University of Neuchatel); FILIPPINI, Massimo (ETH Zurich and University of Lugano); KOLLER, Martin (ETH Zurich)
    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: 2013–02–22
  4. By: Rahmatallah Poudineh; Tooraj Jamasb
    Abstract: Following the liberalisation of the electricity industry since the early 1990s, many sector regulators have recognised the potential for cost efficiency improvement in the networks through incentive regulation aided by benchmarking and productivity analysis. This approach has often resulted in cost efficiency and quality of service improvement. However, there remains a growing concern as to whether the utilities invest sufficiently and efficiently in maintaining and modernising the networks to ensure long term reliability and also to meet future challenges of the grid. This paper analyses the relationship between investments and cost efficiency in the context of incentive regulation with ex-post regulatory treatment of investments using a panel dataset of 126 Norwegian distribution companies from 2004 to 2010. We introduce the concept of “no impact efficiency” as a revenue-neutral efficiency effect of investment under incentive regulation which makes a firm “investment efficient” in cost benchmarking practice. Also, we estimate the observed efficiency effect of investments in order to compare with no impact efficiency and discuss the implication of cost benchmarking for investment behaviour of network companies.
    Keywords: Investments, cost efficiency, incentive regulation, distribution network
    JEL: L43 L51 L94 D21 D23 D24
    Date: 2013–04–01
  5. By: Keshari, Pradeep Kumar
    Abstract: Adopting a micro-level framework of impact of FDI in an industry, this study empirically examines the following three issues in the context of Indian machinery industry (IMI) - division 28 of National Industrial Classification, 2008. First of all, it compares the technical efficiency of foreign affiliates of multinational enterprises (FAs) against the domestic firms (DFs) to know if there are spillovers from MNEs to their affiliates. Secondly, it identifies the differences in the determinants of technical efficiency between FAs and DFs. Finally, it examines the presence (or absence) of efficiency spillovers from FAs to DFs in terms of its two major sources: competition effect and demonstration and imitation effect. To examine these issues, we first compute the firm- and year-specific technical efficiency by estimating a stochastic frontier production function with the help of an unbalanced panel of data on a sample of 177 firms for 7 years covering FY 2000/01 to FY 2006/07. Thereafter, we estimate random-effect panel data models of the determinants of firm-level technical efficiency. One of the important finding of the study is that the FAs as a ownership group maintains higher level of technical efficiency than DFs even after controlling for the additional determinants (both observed and unobserved) of technical efficiency. Another significant aspect of the finding is that the competition effect generated by FAs does not play a positive role in enhancing the efficiency of DFs. Probably, the inefficient DFs have been ousted on account of competitive pressure from the efficient FAs. On the other hand, the demonstration and imitation effects generated by FAs through their R&D activities (i.e. knowledge spillover) act as the important channel in enhancing the efficiency of DFs. In sum, FDI is found to have efficiency enhancing effect in the IMI. This finding has considerable policy implication for the IMI, which suffers from the adverse impact of high level of imports of finished goods, limited technological capabilities and operational inefficiency. In the post-WTO era, restricting imports and implementation of trade related investment measures are not the feasible options. Beside, this study also indicates that the import of disembodied technology has no impact on technical efficiency despite the IMI entering into maximum number of foreign technological collaboration agreements during August 1991 to July 2007. Given the current policy of Indian Government for 100 per cent equity participation through FDI on an automatic basis in the manufacturing sector including IMI, the firms desiring to expand their base in this industry may consider the option of attracting FDI for building additional capacities and for enhancing their efficiency levels (viz. from knowledge spillovers from MNEs) and thereby upgrading this industry for facing the challenges of the global competition.
    Keywords: Technical Efficiency, FDI, Spillovers, Indian Machinery Industry
    JEL: D22 D24
    Date: 2013–05–20
  6. By: Fernández-Zubieta,Ana; Geuna, Aldo; Lawson, Cornelia (University of Turin)
    Abstract: This article analyses the impact of mobility on researchers’ productivity. We address the relationship by developing a theoretical framework based on the job-matching approach for academics and the idea that productivity is driven by capital availability and peer effects. The empirical analysis is based on the entire careers of a sample of 171 UK academic researchers, spanning from 1957 to 2005. We analyse the impact of job changes on post mobility output in 3 and 6 year periods. Contrary to common wisdom, we do not find evidence that mobility per se increases academic performance. Mobility to better department s has a positive but weakly significant impact while downward mobility results in decreasing researchers’ productivity. Once we control for mobility associated with career progress, the results indicate significant strong positive impact for mobility to higher quality department. We estimated a set of alternative specifications of mobility finding evidence of an increase of productivity for mobility from industry to academia but only after an initial negative effect. In most cases mobility is associated with short-term decrease of productivity due to hypothesised adjustment costs.
    Date: 2013–04
  7. By: HOSSEINZADEH LOTFI, Farhad (Islamic Azad University, Tehran, Iran); HATAMI-MARBINI, Adel (Université catholique de Louvain, CORE and Louvain School of Management, Belgium); AGRELL, Per (Université catholique de Louvain, CORE and Louvain School of Management, Belgium); GHOLAMI, Kobra (Islamic Azad University, Tehran, Iran)
    Abstract: Data envelopment analysis (DEA) is a powerful tool for measuring the relative efficiencies of a set of decision making units (DMUs) such as schools and bank branches that transform multiple inputs to multiple outputs. In centralized decision-making systems, management normally imposes common resource constraints such as fixed capital, budgets for operating capital and staff count. In consequence, the profit or net value added of the units subject to resource reductions will decrease. In terms of performance evaluation combined with resource allocation, the interest of central management is to restore the general efficiency value of the DMUs. The paper makes four contributions to the literature: (1) we take into consideration the performance evaluation of the centralized budgeting of hierarchical organizations along with sales and market allocation within manufacturing and distribution organizations; (2) we address the evaluation problems that the central decision maker does not desire to deteriorate the efficiency score of the DMUs after input and/or output reduction; (3) we develop a common set of weights (CSW) method based on the goal program (GP) concept to control the total weight flexibility in the conventional DEA models; (4) we extend a new approach to optimize the inputs and/or outputs contraction such that the efficiency of all DMUs will get bigger than or equal to the efficiency of previous change. We ultimately present a numerical example involving with three inputs and two outputs to illustrate the applicability and efficacy of the proposed approach.
    Keywords: data envelopment analysis, inputs and outputs deterioration, common set of weights
    JEL: C14 M11 C61
    Date: 2013–02–22
  8. By: Rada, Nicholas E.; Rosen, Stacey; Beckman, Jayson
    Abstract: Global agriculture must significantly increase production to meet by mid-century the demands for food, feed, and fiber posed by the world’s enlarging population. An important requirement to meeting those demands is a lifting of agricultural total factor productivity (TFP) growth rates. The present analysis evaluates the impact global agricultural TFP growth may have on food security in developing countries over the next decade. The results present an encouraging picture of developing countries’ food security status, especially in Asia and Africa. It finds that a continuation of last decade’s agricultural performance significantly accelerates food security reductions, highlighting the important role agricultural productivity plays in a country’s food security strategy. It also finds that TFP growth alleviates food insecurity primarily through a balanced approach between production and trade in Asia and Latin America but gains in Africa appear heavily tilted toward imports. There are, however, limitations to our approach, such as possible overestimation of import capacity in some countries.
    Keywords: agricultural productivity growth, TFP, GTAP, value-added, gross output, food security, Food Security and Poverty, International Development, Productivity Analysis,
    Date: 2013
  9. By: Wladimir Raymond; Jacques Mairesse; Pierre Mohnen; Franz Palm
    Abstract: This paper introduces dynamics in the R&D to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated across equations and that differ in the way innovation enters the conditional mean of labor productivity: through an observed binary indicator, an observed intensity variable or through the continuous latent variables that correspond to the observed occurrence or intensity. It estimates these models by full information maximum likelihood using two unbalanced panels of Dutch and French manufacturing firms from three waves of the Community Innovation Survey. The results provide evidence of robust unidirectional causality from innovation to productivity and of stronger persistence in productivity than in innovation.
    JEL: C33 C34 C35 L60 O31 O32
    Date: 2013–05
  10. By: Rada, Nicholas E.
    Abstract: India has enjoyed rapid economic growth over the past forty years, GDP per capita (PPP$) accelerating from less than 1% in the 1970s to over 5.8% in the 2000s. As incomes have risen, consumer demand has shifted from staple grains toward higher valued foods, such as horticultural and livestock products. Indian farmers appear to be meeting these new growth opportunities. But as production shifts, questions are being raised about agriculture’s ability to meet the basic food needs of India’s 1.24 billion citizens. Central to these questions has been the waning impact of cereal grain technologies typified by the Green Revolution. Our purpose is to examine the productivity growth implications of farmers’ decisions to diversify production and to assess new sources of growth in Indian agriculture. In doing so, we construct new production and productivity accounts and evaluate total factor productivity (TFP) growth, from 1980 to 2008, at the national, regional, and state levels. Results suggest renewed growth in aggregate TFP growth despite a slowdown in cereal grain yield growth. TFP growth appears to have shifted to the Indian South and West, led by growth in horticultural and livestock products.
    Keywords: agricultural growth, India, Tornqvist-Thiel, TFP growth, agricultural diversification, International Development, Production Economics, Productivity Analysis,
    Date: 2013
  11. By: Antonelli,Cristiano; Gehringer, Agnieszka (University of Turin)
    Abstract: We investigate the demand pull effects on sector-level total factor productivity growth. Such effects stem from the knowledge interactions carried by the market Transactions of intermediate inputs between competent customers and innovative suppliers. Both knowledge interactions and transactions are substantial ingredients in making the competent demand operate the positive impact on productivity growth of the entire economic system. The demand pull hypothesis is, thus, rejuvenated through the focus on the inter-sectoral linkages between competent users and innovative producers. In the empirical analysis based on a dynamic panel technique, we implement intermediate flows from input-output tables, qualified by productivity increases downstream, in order to investigate their joint influence on the upstream growth of productivity. The evidence Union of the derived demand-driven influence regarding the European (EU) over the period 1995-2007 is strong and positive, but varies between three EU innovation systems, EU core, East and South.
    Date: 2013–04
  12. By: Muehlen, Henning
    Abstract: Foreign direct investment (FDI) projects are assumed to be accompanied by potential external effects - so-called FDI spillovers - which are supposed to affect productivity levels of other firms in a host country. Empirical results on this topic are inconclusive and most studies focus on one country. I contribute to the literature by employing comparable firm-level panel data from ten Latin American (developing) countries in order to estimate the spillover effects from FDI on firms' productivity levels. The impact is assessed as an average effect for the full set of countries as well as for each economy separately. The results indicate that there is a small negative spillover effect from foreign presence within industries across Latin American countries. Furthermore, I find that the negative intra-industry spillover is caused by wholly owned foreign affiliates. The country-specific investigation indicates that the spillover effects differ between the considered economies with a tendency that the presence of FDI in a sector (region) has a negative (positive) impact.
    Keywords: Foreign direct investments; Spillovers; Firm-level panel data; Enterprise surveys; Latin America; Developing countries
    JEL: F21 F23 O33
    Date: 2013
  13. By: Kim, T.Y.; Dekker, R.; Heij, C.
    Abstract: Efficiency of outbound warehouse operations depends on the management of demand forecasts and associated labor planning. A case study in consumer electronics shows that warehouse management systematically over-forecasts actual orders, by 3% on average and by 6-12% in busy periods (at the end of each month and also in the months September, October, and November). A time series model that corrects order forecasts for the biases in preceding weeks reduces the bias to less than 2%, both on average and also in busy periods. The arrangements with the labor provider imply potential benefits of intentional over-forecasting and the associated ample labor supply for the warehouse. As compared to under-forecasted days, labor productivity on over-forecasted days is higher by 12% for loading activities and by 4% for picking and total outbound activities. Similar productivity gains are found if unbiased forecasts are compared with the optimal bias obtained from non-linear models estimated from daily data on bias and labor efficiency. The positive effects of intentional over-forecasting on productivity are confirmed in a structural equations model. By following similar methodologies as described in this paper, warehouse managers can determine the amount of intentional forecast bias that works best for their situation. The information required for this kind of evidence-based labor management consists of historical data on order sizes, forecasts, and labor productivity, and the outcomes depend on the available hiring strategies and cost structures.
    Keywords: time series;forecasting;decision support;case study;labor efficiency;wharehouse planning
    Date: 2013–05–01
  14. By: Antonelli, Cristiano; Fassio, Claudio (University of Turin)
    Abstract: This paper contributes the large literature on the university industry relations providing unique historic evidence on the positive effects of academic spillovers as proxied by chairs, distinguished by disciplinary field, on total factor productivity growth. The analysis impinges upon an original data-base on the evolution of the size and the disciplinary composition of the stock of academic chairs in Italy in the years 1900-1959. The results confirm the contribution of academic knowledge to economic growth and the positive effects of the public support to the academic system. At the same time they shed new light on the differentiated impact of the different disciplines on economic growth. The increase in the number of chairs in engineering and chemistry contributed to total factor productivity growth more than any other discipline. This is consistent with the historic context characterized by the radical transformation of a backward agricultural economy into a highly industrialized and rich one. The results of this cliometric analysis of a case where the corporate mode of knowledge governance had not yet been introduced confirm the viability of the academic mode of knowledge governance.
    Date: 2012–05
  15. By: Samuel Fosu
    Abstract: This paper investigates the relationship between capital structure and firm performance, paying particular attention to the degree of industry competition. The paper applies a novel measure of competition, the Boone indicator, to the leverage performance relationship. Using panel data consisting of 257 South African firms over the period 1998 to 2009, this paper examines the effect of capital structure on firm performance and investigates the extent to which the relationship depends on the level of product market competition. The results suggest that financial leverage has a positive and significant effect on firm performance. It is also found that product market competition enhances the performance effect of leverage. The results are robust to alternative measures of competition and leverage.
    Keywords: Capital structure; Product market competition; Firm performance
    JEL: G32 L11 L25
    Date: 2013–05
  16. By: Min, Hokey; Lambert, Thomas
    Abstract: Abstract Due to mounting fiscal pressures over the last few years, the federal government as well as many state and municipal governments in the United States (U.S.) have had to re-examine their transportation policies and programs. Tax increases and/or spending cuts which aim to trim budget deficits are major preoccupations of most policy makers and legislative bodies nowadays. With regard to the task of building new or rehabilitating bridges, highways, and toll gates, cost-benefit analysis and economic impact studies are often undertaken by various government entities to rank and prioritize spending in the hopes of maximizing fiscal efficiency and road usage benefits. Since most highway construction and maintenance expenditures are absorbed by state governments, it is mostly up to state policy makers to decide transportation priorities. However, no research to date has been conducted to evaluate the comparative efficiency of state road provision to commuters and shippers. Such research would be useful to a state government’s budgetary allocation and spending plans. This paper is one of the first to assess and rank the comparative efficiency of all 50 states in the U.S. by using data envelopment analysis and then to explain variations in efficiency ratings by using Tobit regression analysis.
    Keywords: Keywords: data envelopment analysis, Tobit regression, road provisions, toll pricing, mass transit
    JEL: R4 R52
    Date: 2013–04–24
  17. By: Shingo Kimura; Christine Le Thi
    Abstract: This report analyses the farm performance data contributed through the OECD Network for Farm-level Analysis. It first compares the distribution of four economic performance indicators across nine participating countries or regions for selected farm types (output and input ratio, and net operating income per unit of labour, land and net worth). The comparative analysis shows significant differences in farm economic performances within countries as well as across countries. It implies that promoting the adoption of existing best practice and improving the resource allocation can lead to a significant improvement in the sector’s performance. The factor analysis found that large farm size is a factor of high economic performance for most types of farms across countries, but it also identified other relevant factors of high performance independent of the farm size factor, such as younger age, higher education, and use of financial leverage. See also OECD Food, Agriculture and Fisheries Papers No. 46 “Distribution of support and income in agriculture” ( en).
    Keywords: factor analysis, resource allocation, producer support, farm performance, farm size, output and input ratio, off-farm income
    JEL: D31 Q12 Q18
    Date: 2013–05–22
  18. By: Maria Bas; Antoine Berthou
    Abstract: Foreign technology transfers play a key role in economic growth. This paper investigates the effects of input-trade liberalization on firms’ decision to upgrade foreign technology embodied in imported capital goods. We develop a theoretical model of endogenous technology adoption, heterogeneous firms and imported inputs. Assuming that imported intermediate goods and high-technology are complementary and the existence of technology adoption fixed costs, the model predicts a positive effect of input tariff reductions on firms’ technology choice to source capital goods from abroad. This effect is heterogeneous across firms depending on their initial productivity level. Using firm-level data from India and imports of capital goods to measure high-technology, we demonstrate that the probability of importing capital goods is higher for firms producing in industries that have experienced greater cuts on tariffs on intermediate goods. Our findings also suggest that only those firms in the middle range of the productivity distribution have benefited from input-trade liberalization to upgrade their technology as predicted by the model. These empirical results are robust to alternative specifications that control for industry and firm characteristics, tariffs on capital goods, other reforms and alternative measures of technology.
    Keywords: Input-trade liberalization;firms’ decision to import capital goods;firm heterogeneity and firm level data
    JEL: F10 F14 D24
    Date: 2013–04
  19. By: Antonelli, Cristiano; Crespi, Francesco; Scellato, Giuseppe (University of Turin)
    Abstract: This paper contributes the analysis of the persistence of innovation activities, as measured by total factor productivity (TFP) and explores its internal and external determinants stressing its path dependent characteristics. The external conditions, namely the quality of local knowledge pools and the strength of the Schumpeterian rivalry, together with the internal conditions, that is the actual levels of dynamic capabilities, as proxied by the levels of wages and the size of firms, exert a specific and localized effect upon the persistent introduction of innovations. A Multiple Transition Probability Matrixes (MTPMs) approach has been implemented to grasp the contingent effects of external effects on the long-term innovation persistence. The empirical analysis of the dynamics of firm level TFP for a sample of about 7000 Italian manufacturing companies observed during the years1996-2005 is based on both the comparison of different transition probability matrixes and on dynamic discrete choice panel data models. The evidence provided by the test of MTPMs in sub-periods suggests that innovation persistence is path dependent, as opposed to past dependent.
    Date: 2012–05
  20. By: AGRELL, Per (Université catholique de Louvain, CORE & Louvain School of Management, Belgium); BOGETOFT, Peter (Copenhagen Business School, Denmark)
    Abstract: Benchmarking methods, and in particular Data Envelopment Analysis (DEA), have become well-established and informative tools for economic regulation. DEA is now routinely used by European regulators to set reasonable revenue caps for energy transmission and distribution system operators. The application of benchmarking in regulation, however, requires specific steps in terms of data validation, model specification and outlier detection that are not systematically documented in open publications, leading to discussions about regulatory stability and economic feasibility of these techniques. In this paper, we review the modern foundations for frontier-based regulation and we discuss its actual use in several jurisdictions.
    Keywords: agency theory, regulation, energy networks
    JEL: Q40 L59 C51 C24
    Date: 2013–04–26
  21. By: Peter Z. Schochet; Hanley S. Chiang
    Abstract: This article addresses likely error rates for measuring teacher and school performance in the upper elementary grades using value-added models applied to student test score gain data. Using formulas based on ordinary least squares and empirical Bayes estimators, error rates for comparing a teacher’s performance to the average are likely to be about 25 percent with three years of data and 35 percent with one year of data. Corresponding error rates for overall false positive and negative errors are 10 percent and 20 percent, respectively. The results suggest that policymakers must carefully consider likely system error rates when using value-added estimates to make high-stakes decisions regarding educators.
    Keywords: Value-Added Models, Performance Measurement Systems, Student Learning Gains, False Positive and Negative Error Rates
    JEL: I
    Date: 2013–04–30
  22. By: AGRELL, Per (Université catholique de Louvain, CORE & Louvain School of Management, Belgium); NIKNAZAR, Pooria (Université catholique de Louvain, LSM, Belgium)
    Abstract: Benchmarking methods, primarily non-parametric techniques such as Data Envelopment Analysis, have become well-established and informative tools for economic regulation, in particular in energy infrastructure regulation. The axiomatic features of the non-parametric methods correspond closely to the procedural and economic criteria for good practice network regulation. However, critique has been voiced against the robustness of best-practice regulation in presence of uncertainty regarding model specification, data definition and collection. This paper investigates the foundation of the critique both conceptually and by describing the actual state-of-the-art used in energy network regulation using frontier analysis models in Sweden (2000-2003) and in Germany (2007-). A principal component of the applied frontier regulation is the systematic use of outlier detection models to define homogeneous reference sets and to exclude maverick reports. We review two families of outlier detection methods in terms of their function and application using a data set from Swedish electricity distribution, illustrating the different types of outliers. Finally, the paper concludes on the role of outlier detection as a mean to implement regulation with higher robustness.
    Keywords: regulation, energy networks, outlier detection
    Date: 2013–04–26
  23. By: Josephson, Anna Leigh
    Keywords: Crop Production/Industries,
    Date: 2013–05
  24. By: Keshari, Pradeep Kumar; Saggar, Mridul
    Abstract: The paper seeks to analyse the determinants of export performance for large firms operating in the machinery and transpoprt equipment Industry of India. The study follows the neo-factor proportion and neo-technology approaches relevant for firm level export. The study establishes the importance of skill factors and technological collaborations in explaining the export performance of firms operating in the Indian machinery and transport equipment Industry. Skilled workers, whether they are employed for product innovation/adaptation, production engineering, or export marketing have contributed immensely to improved export performance in this industry.
    Keywords: neo-factor proportions, neo-technology theory, firm level export, machinery and transport equipment, India
    JEL: F12 F14 O3
    Date: 2013–05–21
  25. By: Beckman, Jayson; Borchers, Allison; Jones, Carol
    Abstract: Rising energy prices and changing energy and environmental policies have transformed the relationship between the energy and agriculture sectors. Traditionally, the relationship has been one-way, with agriculture using energy products as an input in production; during the past decade, however, the energy sector’s use of agricultural products as renewable-fuel feedstocks has increased substantially. This report examines both sector and farm-level responses to changing market and policy drivers such as the increased production of biofuel crops and other sources of renewable energy, together with changes in production practices to economize on energy-based inputs like fertilizer. We provide insight into how farmers have adapted to the changes and update and provide new data on the evolving linkages between the energy and agricultural sectors.
    Keywords: energy, fertilizer, pesticides, fuel, biofuels, renewable energy, ARMS, Crop Production/Industries, Farm Management, Resource /Energy Economics and Policy,
    Date: 2013–05
  26. By: Keshari, Pradeep Kumar
    Abstract: The objective of this paper was to empirically examine the differences in the relative characteristics, conducts and performance of two ownership groups of firms, foreign affiliates of MNEs (FAs) and domestic firms (DFs), in the context of Indian machinery industry (IMI) during the period 2000/01 to 2006/07. For this purpose, we applied three alternative techniques, namely, univariate statistical method based on Welch's t-test comparing the mean value of a variable between two groups of firms, the multivariate linear discriminant analysis and dichotomous logit and probit models. The common and significant findings of the statistical analysis suggest that FAs have the greater technical efficiency, firm size, export intensity, intensity of import of intermediate goods and intensity of import of disembodied technology but the lower advertisement and marketing intensity and financial leverage. These findings also give some indications about the quality of FDI that has come to the IMI during the aftermath of economic reforms. First, it seems that the superior resources and capabilities of FAs confer them higher technical efficiency (but not overall performance or the monopoly power) and export intensity in relation to DFs. Second, as the intensity of import of intermediate goods in FAs is significantly higher than that of DFs, the former group tends to have fewer linkages with domestic suppliers of intermediate goods including capital goods, raw material, components and spare parts. In other words, DFs with their activities in the IMI are providing higher linkages with the indigenous suppliers. Third, the combined results on higher expenses on import of intermediate goods and import of foreign technology by FAs and no difference in gross profit margins between FAs and DFs point out that the FAs are probably engaged in the transfer of profits to the MNE system through intra-firm trade. This aspect, however, require further research which is beyond the scope of this study. Fourth, despite the higher import of intermediate goods and disembodied technologies, FAs are not spending higher amounts on R&D towards adaptation or/and absorption of the imported technology and indigenization of the imported inputs. As a result, R&D intensities of FAs and DFs are the same. Thus, we conclude that our empirical analysis supports the proposition that the FAs and DFs differ in terms of the many aspects of conducts and performance in the IMI.
    Keywords: MNEs, Domestic Firms, Conducts, Performance, Indian machinery industry
    JEL: L25
    Date: 2013–05–18
  27. By: Adong, Annet; Mwaura, Francis; Okoboi, Geofrey
    Abstract: While government of Uganda and its development partners are targeting farmer groups as the vehicle for agricultural development, there is limited empirical evidence on what drives membership to these groups. Using the Uganda Census of Agriculture 2008/9 data, this paper reveals low levels of membership both at individual and household levels with a marked regional dimension. The key policy variables found to influence participation in farmer group included education attainment, distance to extension service and quality of road infrastructure. Increasing membership to farmer groups requires government and its development partners to target more resources towards less educated farmers and those who live far from extension workers. The use of the local language in publicity materials is also important in ensuring participation among the illiterate and the less educated. Overall, there is a need for concerted efforts by all institutions supporting groups to ensure that existing groups have improved access to agricultural technologies and noticeable outcomes are achieved so as to attract more farmers.
    Keywords: Farmer group Membership, Decision Making, Uganda Census of Agriculture, Adong, EPRC, Agribusiness, Agricultural and Food Policy, Agricultural Finance, Community/Rural/Urban Development, Crop Production/Industries, Farm Management, Labor and Human Capital, Productivity Analysis,
    Date: 2012–05
  28. By: Kräussl, Roman; Krause, Stefan
    Abstract: After nearly two decades of US leadership during the 1980s and 1990s, are Europe's venture capital (VC) markets in the 2000s finally catching up regarding the provision of financing and successful exits, or is the performance gap as wide as ever? Are we amid an overall VC performance slump with no encouraging news? We attempt to answer these questions by tracking over 40,000 VC-backed firms stemming from six industries in 13 European countries and the US between 1985 and 2009; determining the type of exit - if any - each particular firm's investors choose for the venture. --
    Keywords: Venture Capital,Private Equity,Entrepreneurial Activity,Performance Gap
    JEL: G24 G3
    Date: 2012
  29. By: Schönbohm, Avo
    Abstract: This teaching note provides an overview and a technical introduction to the mechanics of financial statement and ratio analysis, and offers an outlook into related areas. The BASF SE financial data 2011 are analyzed to illustrate the techniques of financial performance analysis and discusses action levers to enhance the performance of a business. This teaching note is especially written for undergraduate students in Management Accounting. However, it might serve well as an introduction to strategic performance management on graduate level for students without deep financial or management accounting background. -- Dieser pädagogische Artikel bietet einen Überblick und eine technische Einführung in die Mechanik der Finanz- und Kennzahlenanalyse von Unternehmen. Darüber hinaus wird ein Ausblick in angrenzende Forschungsgebiete aufgezeigt. Zur Verdeutlichung des Konzeptes werden die Zahlen des Jahresberichtes der BASF SE von 2011 analysiert und Hebel zur Verbesserung der Kennzahlen und der Leistung von Unternehmen diskutiert. Der vorliegende Artikel wurde insbesondere für Studierende in der Vertiefung Controlling auf Bachelor-Niveau geschrieben. Er kann allerdings auch gut als Einleitung für strategische Controlling-Fragen für Masterstudierende genutzt werden, die nicht über vertiefte Finanz- bzw. Controllingkenntnisse verfügen bzw. diese auffrischen wollen.
    Date: 2013
  30. By: Antonelli, Cristiano; Barbierini Amidei, Federico; Fassio, Claudio (University of Turin)
    Abstract: The grafting of the tools of communication studies on the economics of knowledge helps to investigate the mechanisms of knowledge governance. The actual economic benefits stemming from knowledge externalities depend on the characteristics of a) their sources, b) the context in which spillovers take place, c) the possible recipients. In the Italian experience between 1950-1992, state owned enterprises (SOE) have been one of the most effective mechanisms of knowledge governance. Italian SOE were very effective emissaries of knowledge externalities as they imitated the US corporate model of intramuros R&D laboratories and yet were characterized by an objective function based upon output maximization under the constraint of average profitability. Their support to the growth of the system was crucial not only with respect to the creation of basic infrastructure but also as active players in implementing effective mechanisms of knowledge governance. Research activities carried out by SOE were mainly based in upstream industries, with multiple user-producer interactions with firms active in downstream industries, and aimed at implementing a knowledge base characterized by high levels of generic content and a wide scope of application. Moreover the specific objective function of SOE favoured higher levels of knowledge generation than exploitation. These characteristics helped disseminate relevant knowledge externalities that played a strong and positive role on total factor productivity in the second part of the XX century in Italy. Their role was stronger than the knowledge externalities stemming from research activities carried out by private firms.
    Date: 2012–05
  31. By: OCDE
    Abstract: <UL> <LI>Les systèmes d’éducation performants sont en mesure de garantir la réussite de tous leurs élèves. </LI> <LI>Dans les pays de l’OCDE, environ 60 % de la variation nationale globale de la performance des élèves s’explique par des variations intra-établissement de la performance des élèves. </LI> <LI>Environ 40 % de la variation globale de la performance des élèves des pays de l’OCDE est imputable à des variations inter-établissements de la performance des élèves ; toutefois, dans les pays les plus performants, les variations de performance sont en général moins prononcées que la moyenne observée dans les pays de l’OCDE. </LI></UL>
    Date: 2013–04
  32. By: Cui, Jingbo; Qian, Hang
    Abstract: This paper employs matching techniques to investigate the effects of facility export status on environmental performance. Using facility-level criteria air emission data in the U.S. manufacturing industry, we find the industry-specific effects of export status on emission intensity, measured by emissions per value of sale. In some industries, there is consistent and robust evidence supporting the superior environmental performance of exporters relative to non-exporters in terms of emission intensity for all criteria air pollutants tracked in the paper. In other industries, we find evidence that exporters appear to have higher emission intensity than non-exporters for some pollutants but not all.
    Keywords: criteria air emissions, exports, propensity score matching, Environmental Economics and Policy, International Relations/Trade, F18, Q56,
    Date: 2013
  33. By: Claudia Ghisetti; Francesco Quatraro
    Abstract: This paper contributes the debate on the inducement of environmental innovations, by analyzing the extent to which endogenous inducement mechanisms spur the generation of greener technologies in contexts characterized by weak exogenous inducement pressures. In the presence of a fragile environmental regulatory framework, the inducement can indeed be endogenous, and environmental innovations might be spurred by firms’ reactions to their environmental performances. The cross-sector analysis is focused on a panel of Italian regions, over the time span 1995-2007 and is conducted by implementing zero-inflated models for count data variables. The empirical results suggest that in a context characterized by substantial lack of regulatory frameworks, like the Italian one, environmental performances have significant and complementary within- and between-sector effects on the generation of green technologies.
    Keywords: Regional NAMEA; Green technologies; Technological innovation; Knowledge production function; Environmental Performance; Knowledge Coherence
    JEL: O33 Q53 Q55 Q56 R11
    Date: 2013–04–03
  34. By: Barbier, Edward B.
    Abstract: Empirical evidence indicates that in many developing regions, the extreme poor in more marginal land areas form a"residual"pool of rural labor. Structural transformation in such developing economies depends crucially on labor and land use decisions of these most-vulnerable populations located on abundant but marginal agricultural land. Although the modern sector may be the source of dynamic growth through learning-by-doing and knowledge spillovers, patterns of labor, land and other natural resources use in the rural economy matter in the overall dynamics of structural change. The concentration of the rural poor on marginal lands is essentially a barometer of economy-wide development. As long as there are abundant marginal lands for cultivation, they serve to absorb rural migrants, increased population, and displaced unskilled labor from elsewhere in the economy. Moreover, the economy is vulnerable to the"Dutch disease"effects of a booming primary products sector. As a consequence, productivity increases and expansion in the commercial primary production sector will cause manufacturing employment and output to contract, until complete specialization occurs. Avoiding such an outcome and combating the inherent dualism of the economy requires both targeted polices for the modern sector and traditional agriculture on marginal lands.
    Keywords: Environmental Economics&Policies,Banks&Banking Reform,Economic Theory&Research,Rural Poverty Reduction,Economic Growth
    Date: 2013–05–01
  35. By: Enrique López-Bazo (Faculty of Economics, University of Barcelona); Elisabet Motellón (Faculty of Economics, University of Barcelona)
    Abstract: This paper uses firm-level data for each of the Spanish NUTS2 regions to estimate the effect of product and process innovations on firm’s export performance. It shows that the firm’s propensity to innovate and its export activity vary substantially across regions. Remarkably, results prove that the effect of innovation on exports is far from regionally uniform. The gap in the propensity to export between innovative and non-innovative firms, conditional to other sources of firm heterogeneity, is shown to be particularly wide in regions with high extensive margin of exports. However, differences in the propensity to innovate do not originate regional disparities in the share of sales abroad by exporting firms. Consequently, stimulate firm’s innovation in the less innovative regions can be an effective tool to increase the share of exporting firms.
    Keywords: export propensity, export intensity, product and process innovations, Spanish regions, firm heterogeneity. JEL classification: F14, R10.
    Date: 2013–05
  36. By: Jan Schiefer; Stefan Hirsch; Monika Hartmann; Adelina Gschwandtner
    Abstract: We decompose the variance of food industry return-on-assets into industry, firm, year and country effects. After determining significance in a nested ANOVA, we estimate the magnitude using components of variance in a large sample of corporations. As a robustness check, we estimate a multilevel model that additionally allows us to estimate the impact of several covariates at each level. The results show that firm characteristics are more important than industry structure in determining food industry profitability. In particular, firm size seems to be an important driver of profitability while firm risk, age and, surprisingly market share have a negative influence.
    Keywords: ROA; decomposition; variance components; MBV; RBV
    JEL: L00 C22 L66
    Date: 2013–05
  37. By: Marsha Gold; Maria Cupples Hudson
    Abstract: The Affordable Care Act has altered payment policy for private Medicare Advantage (MA) plans, with the goal of lowering costs to bring them closer to the costs of traditional Medicare. Using new information on 2009 MA costs, an issue brief compares plans’ estimates of per capita costs for providing Parts A and B benefits to their enrollees, on a risk-adjusted basis, against government data on the same costs for traditional Medicare program beneficiaries in the same county. On average, risk-adjusted MA plan costs were 4 percent higher than traditional Medicare costs (104 percent). Among plan types, only HMOs had lower average costs than traditional Medicare. The wide variation in costs for MA plans relative to those for traditional Medicare suggests room for greater efficiency in care delivery.
    Keywords: Medicare Advantage, Efficiency, Variation, Health
    JEL: I
    Date: 2013–04–24

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