nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2014‒11‒28
33 papers chosen by

  1. Determinants of Operational Efficiency and Total Factor Productivity Change of Major Cambodian Financial Institutions : A Data Envelopment Analysis during the Period of 2006-2013 By OKUDA, Hidenobu; AIBA, Daiju
  2. Import Competition, Domestic Regulation and Firm-Level Productivity Growth in the OECD By Sarah Ben Yahmed; Sean Dougherty
  3. Reassessing the Effects of Weather on Agricultural Productivity By Beddow, Jason; Pardey, Philip; Hurley, Terrance
  4. The productivity paradox: A Meta-analysis By Petr Polák
  5. The Productivity of Family and Hired Labour in EU Arable Farming By Kloss, Mathias; Petrick, Martin
  6. Productivity and Technical Inefficiency of Alternative Pest Management Compliant and Non-Compliant Farmers: The Case of Shallot Growers in Java By Wahida; Yi, Dale; Umberger, Wendy; Stringer, Randy; Minot, Nicholas
  7. Land Fragmentation with Double Bonuses -- The Case of Tanzanian Agriculture By Rao, Xudong
  8. Estimating Direct and Indirect Effects of Foreign Direct Investment on Firm Productivity in the Presence of Interactions between Firms By Girma, Sourafel; Gong, Yundan; Görg, Holger; Lancheros, Sandra
  9. To What Extent Do Improved Practices Increase Productivity of Small-Scale Rice Cultivation in A Rain-fed Area? : Evidence from Tanzania By Yuko Nakano; Yuki Tanaka; Keijiro Otsuka
  10. Estimating Decadal Climate Variability Effects on Crop Yields: A Bayesian Hierarchical Approach By Huang, Pei; McCarl, Bruce A.
  11. "Acquisitions, Productivity, and Profitability: Evidence from the Japanese Cotton Spinning Industry" By Serguey Braguinsky; Atsushi Ohyama; Tetsuji Okazaki; Chad Syverson
  12. The effects of climate change adaptation strategies on food crop production efficiency in Southwestern Nigeria By Otitoju, Moradeyo Adebanjo
  13. Migration, Local Off-farm Employment and Agricultural Production Efficiency: Evidence from China By Yang, Jin; Wang, Hui; Jin, Songqing; Chen, Kevin; Riedinger, Jeffrey; Peng, Chao
  14. Agricultural Productivity, Openness, and Urbanization: A Smooth Coefficient Regression Analysis By Li, Xiaofei; Florax, Raymond; Waldorf, Brigitte
  15. Labor Productivity in Rural African Enterprises: Empirical Evidence from the LSMS-ISA By Nagler, Paula; Naudé, Wim
  16. Measuring Technical Efficiency in a Small-Scale Fishery: A Stochastic Frontier Analysis to an Inland Fishery in the North Side of Mexico By Colin-Castillo, Sergio
  17. Efficiency of health systems in sub-Sahara Africa: a comparative analysis of time varying stochastic frontier models By Novignon, Jacob; Lawanson, Akanni
  18. Does local public ownership matter for the efficiency of water utilities? Evidence from Italy By Meryem Duygun; Silvia Pazzi; Emili Tortosa-Ausina; Simona Zambelli
  19. Technical Efficiency of Thai Jasmine Rice Farmers: Comparing Price Support Program Participants and Non-Participants By Duangbootsee, Uchook; Myers, Robert J.
  20. The Effects of Research & Development Funding On Scientific Productivity: Academic Chemistry, 1990-2009 By Joshua L. Rosenbloom; Donna K. Ginther; Ted Juhl; Joseph Heppert
  21. Purging Heterogeneity from Technical inefficiency Estimation in a Stochastic Frontier Models By Wamisho, Kassu
  22. Testing for production with complementarities By Pawel Dziewulski; John Quah
  23. Does land fragmentation increase the cost of cultivation ? evidence from India By Deininger, Klaus; Monchuk, Daniel; Nagarajan, Hari K; Singh, Sudhir K
  24. Economic Impact of Integration in the Food Supply Chain By Jarzebowski, Sebastian; Bezat-Jarzeboski, Agnieszka; Klepacki, Bogdan
  25. Substitution Elasticities between GHG Polluting and Non-polluting Inputs in Agricultural Production: A Meta-Regression By Liu, Boying; Shumway, C. Richard
  26. Longevity and technological change By Gehringer, Agnieszka; Prettner, Klaus
  27. Polish farms with cattle production in comparison to selected countries By Ziętara, Wojciech
  28. Efficiency and competition in the Dutch non-life insurance industry: Effects of the 2006 health care reform By Jacob Bikker; Adelina Popescu
  29. Credence Attributes’ Valuation and Price Dispersion: Quantile Regression vs. Stochastic Frontier – an Application to Health Claims in Yogurts By Bonanno, Alessandro; Costanigro, Marco; Bimbo, Francesco; Oude Lansink, Alfons; VIscecchia, Rosaria
  30. Explaining Differences in the Productivity of Capital Across Countries in the Context of ‘New’ Growth Theory By Kevin S. Nell; A.P. Thirlwall
  31. Impact of regional diversity on production potential: an example of Russia By Belyaeva, Maria; Hockmann, Heinrich; Koch, Friedrich
  33. New Linked Data on Research Investments: Scientific Workforce, Productivity, and Public Value By Julia Lane; Jason Owen-Smith; Rebecca Rosen; Bruce Weinberg

  1. By: OKUDA, Hidenobu; AIBA, Daiju
    Abstract: This study is the first attempt to estimate the determinants of the operational efficiency and total factor productivity (TFP) change of major financial institutions in Cambodia during the period 2006 to 2013. The technical efficiency score and the TFP change were measured using conventional data envelopment analysis (DEA) and the Malmquist index, and these obtained indexes were then regressed to find their determinants. The empirical results obtained reveal that the efficiency of large institutions is higher and more stable than that of small institutions, and the efficiency of domestic institutions is better than that of their foreign counterparts. Furthermore, institutions that are more resilient and operationally stable can generate profits more efficiently, and institutions that are more diversified are more efficient. It was also observed that sound and diversified institutions tend to increase their total factor productivity, and some exogenous factors, such as increased household reserves of financial assets and improved economic infrastructure, contributed to the improvement of productivity change. These observations suggest that further improvement of Cambodian financial institutions requires an increase in operational capacity, appropriate selection of foreign ownership, enhanced soundness of management, and greater diversification.
    Keywords: Cambodia, DEA, Commercial banks, Operational efficiency, Total factor productivity
    JEL: G21
    Date: 2014–11–05
  2. By: Sarah Ben Yahmed (IEP Aix-en-Provence - Sciences Po Aix - Institut d'études politiques d'Aix-en-Provence - Institut d'Études Politiques [IEP] - Aix-en-Provence - Aix Marseille Université - Fondation Nationale des Sciences Politiques [FNSP], GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - École des Hautes Études en Sciences Sociales (EHESS) - CNRS : UMR7316); Sean Dougherty (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, OCDE - Organisation de coopération et de développement économiques - OCDE)
    Abstract: This paper examines how import penetration affects firms' productivity growth taking into account the heterogeneity in firms' distance to the efficiency frontier and country differences in product market regulation.
    Keywords: Firm productivity growth ; Behind-the-border regulatory barriers ; Product market regulation ; Import competition, international trade
    Date: 2014–03–14
  3. By: Beddow, Jason; Pardey, Philip; Hurley, Terrance
    Keywords: Environmental Economics and Policy, Production Economics, Productivity Analysis,
    Date: 2014–06
  4. By: Petr Polák (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)
    Abstract: The impact of ICT (information and communication technology) on economic performance has been the subject of academic research for several decades, and despite the remarkable and significant innovation in computer technology, usage, and investments, only a small growth in productivity was observed. This observations has been coined the productivity paradox. This paper meta-analytical methods to examine publication bias and size of ICT elasticity. The empirical part is based on a collection of more than 800 estimates of IT payoff effects from almost 70 studies written in the last 20 years. The metaanalysis reveals strong presence of publication bias within ICT productivity literature and using mixed effect multilevel model estimates the ICT elasticity to be only 0.3%, which is more than ten times smaller than what was reported by previous meta-analysis 10 years ago.
    Keywords: meta-analysis, meta-regression analysis, publication bias, productivity paradox, Solow paradox, productivity, firm, ICT elasticity, IT payoff, information technology
    JEL: C83 O12 O32 D24
    Date: 2014–09
  5. By: Kloss, Mathias; Petrick, Martin
    Abstract: This paper investigates the impact of labour force composition on productivity in EU arable farming. We test the heterogeneity of family and hired labour for a set of eight EU member states. To this end, we estimate augmented production functions using FADN data for the years 2001-2008. The results reject the notion that hired labour is generally less productive than family workers. In fact, farms with a higher share of hired workers are more productive than pure family farms in countries traditionally characterised by family labour, namely France, West Germany and Poland. Here, an increase in reliance on hired labour or the shift of family labour to more productive tasks could raise productivity. This finding calls into question a main pillar of the received family farm theory. In about half the countries, there are no statistically different effects of both types of labour. For the United Kingdom, we find the classical case with family farms being more productive than those relying on hired labour. In this situation supervision by family members could increase productivity. As a side result, we find little evidence of non-constant technical returns to scale.
    Keywords: Labour productivity, production function estimation, European Union, FADN, Farm Management, Productivity Analysis,
    Date: 2014–09
  6. By: Wahida; Yi, Dale; Umberger, Wendy; Stringer, Randy; Minot, Nicholas
    Abstract: In response to (a) growing demand for high safety and quality fresh food products; (b) increasingly stringent standards on chemical residues, and (c) concern regarding the sustainability of chemical input intensive agriculture, the adoption of sustainable production systems (IPM, Pesticide-Free, organic) in agriculture is rapidly expanding. This study uses data from 2011 Shallots Growers Survey in Indonesia to compare the productivity, technical efficiency of APM-adopter and conventional (non-adopter) shallots farmers. We also measure yield loss that may associate with technology adoption. Self-selectivity may cause the frontier production function to differ between the adopters and non-adopters. Propensity Score Matching (PSM) method is used to address self-selectivity before we continue the analysis with Stochastic Production Frontier (SPF). We reject the homogenous technology hypothesis and interestingly the result indicates that on average yield loss that associated with adopting APM farming practices only 1.5%. The yield loss itself can be gradually improved by implementing a proper training and extension methods and empowering the role of farmers’ group among shallot farmers.
    Keywords: Alternative Pest Management, Shallots, Technical Inefficiency, Propensity Score Matching, Indonesia, Agricultural and Food Policy, Crop Production/Industries, Q12, Q16,
    Date: 2014
  7. By: Rao, Xudong
    Abstract: Land fragmentation, also known as scattered land holdings, is a common phenomenon in agriculture around the world. In some cases, it has even persisted through government-supported land consolidation programs that aim to improve agricultural productivity. This study evaluates the effect of land fragmentation on agricultural production and hypothesizes that it may be beneficial to farmers by diversifying risk onto separate land plots that usually have heterogeneous growing conditions. Applying a stochastic frontier model to the Tanzania Living Standards Measurement Study (LSMS) data, we find evidence to support the risk-reduction hypothesis and indications that land fragmentation may be conducive to efficiency. This second finding may seem counter-intuitive but is also supported by similar studies. We further argue that accounting for risk preferences that are absent from current framework in future research may help explain the double bonuses of land fragmentation.
    Keywords: Agricultural productivity, land fragmentation, risk management, stochastic production frontier, Agricultural and Food Policy, Crop Production/Industries, International Development, Land Economics/Use, Production Economics, Productivity Analysis, Risk and Uncertainty, Q12, Q15, Q18,
    Date: 2014–04
  8. By: Girma, Sourafel (University of Nottingham); Gong, Yundan (Aston University); Görg, Holger (Kiel Institute for the World Economy); Lancheros, Sandra (University of Nottingham)
    Abstract: We implement a method to estimate the direct effects of foreign-ownership on foreign firms' productivity and the indirect effects (or spillovers) from the presence of foreign-owned firms on other foreign and domestic firms' productivity in a unifying framework, taking interactions between firms into account. To do so, we relax a fundamental assumption made in empirical studies examining a direct causal effect of foreign ownership on firm productivity, namely that of no interactions between firms. Based on our approach, we are able to combine direct and indirect effects of foreign ownership and calculate the total effect of foreign firms on local productivity. Our results show that all these effects vary with the level of foreign presence within a cluster, an important finding for the academic literature and policy debate on the benefits of attracting foreign owned firms.
    Keywords: propensity score matching, SUTVA, foreign direct investment, interactions
    JEL: F23
    Date: 2014–09
  9. By: Yuko Nakano (University of Tsukuba); Yuki Tanaka (National Graduate Institute for Policy Studies); Keijiro Otsuka (National Graduate Institute for Policy Studies)
    Abstract: This paper investigates the impact of training provided by a large-scale private farm on the performance of surrounding small-scale rice farmers in a rain-fed area in Tanzania. We found that the training effectively enhances the adoption of improved rice cultivation practices, paddy yield, and profit of rice cultivation by small-holder farmers. In fact, the trainees achieve paddy yield of 5 tons per hectare on average, which is remarkably high for rain-fed rice cultivation. Our results suggest high potential of small-scale rain-fed lowland rice cultivation and extension services by private large scale farms.
    Date: 2014–11
  10. By: Huang, Pei; McCarl, Bruce A.
    Keywords: Crop Production/Industries, Productivity Analysis,
    Date: 2014
  11. By: Serguey Braguinsky (Department of Social and Decision Sciences, Carnegie Mellon University); Atsushi Ohyama (Graduate School of Economics and Business, Hokkaido University); Tetsuji Okazaki (Faculty of Economics, The University of Tokyo); Chad Syverson (University of Chicago Booth School of Business and NBER)
    Abstract: We explore how changes in ownership and managerial control affect the productivity and profitability of producers. Using detailed operational, financial, management, and ownership data from the Japanese cotton spinning industry at the turn of the last century, we find a more nuanced picture than the straightforward "higher productivity buys lower productivity" story commonly appealed to in the literature. Acquired firms' production facilities were <i>not</i> on average any less physically productive than the plants of the acquiring firms before acquisition, conditional on operating. They were much less <i>profitable</i>, however, due to consistently higher inventory levels and lower capacity utilization—differences which reflected problems in managing the inherent uncertainties of demand in the industry. When these less profitable plants were purchased by more profitable establishments, the acquired plants saw drops in inventories and gains in capacity utilization that raised both their productivity and profitability levels, consistent with acquiring owner/managers spreading their better demand management abilities across the acquired capital.
    Date: 2014–10
  12. By: Otitoju, Moradeyo Adebanjo
    Keywords: Agricultural and Food Policy, Crop Production/Industries, Production Economics, Productivity Analysis,
    Date: 2013–11
  13. By: Yang, Jin; Wang, Hui; Jin, Songqing; Chen, Kevin; Riedinger, Jeffrey; Peng, Chao
    Abstract: This paper studies the effect of local off-farm employment and migration on rural households’ technical efficiency of crop production using a five-year panel dataset from more than 2,000 households in five Chinese provinces. While there is not much debate about the positive contribution of migration and local off-farm employment to China’s economy, there is an increasing concern about the potential negative effects of moving labor away from agriculture on China’s future food security. This is a critical issue as maintaining self-sufficiency in grain production will be critical for China to feed its huge population in the future. Several papers have studied the impact of migration on production and yield with mixed results. But the impact of migration on technical efficiency is rarely studied. Methodologically, we incorporate the correlated randomeffects approach into the standard stochastic production frontier model to control for unobservable that are correlated with migration and off-farm employment decisions and technical efficiency. The most consistent result that emerged from our econometric analysis is that neither migration nor local off-farm employment has a negative effect on the technical efficiency of grain production, which does not support the widespread notion that vast-scale labor migration could negatively affect China’s future food security.
    Keywords: migration, local off-farm, agriculture, efficiency, China, Community/Rural/Urban Development, Food Security and Poverty, Productivity Analysis, D24, O12, O13,
    Date: 2014–07
  14. By: Li, Xiaofei; Florax, Raymond; Waldorf, Brigitte
    Keywords: urbanization, agricultural productivity, economic openness, Agricultural and Food Policy, Community/Rural/Urban Development, International Development, International Relations/Trade,
    Date: 2014
  15. By: Nagler, Paula (Maastricht University); Naudé, Wim (Maastricht University)
    Abstract: Although non-farm enterprises are ubiquitous in rural Sub-Saharan Africa, little is yet known about their productivity. In this paper we contribute to filling this gap by providing estimates of labor productivity in enterprises for Ethiopia, Malawi, Nigeria, and Uganda. Using the World Bank's LSMS-ISA database, we find that rural enterprises are on average less productive than those in urban areas, and that female-owned enterprises are less productive than male-owned enterprises. By estimating Heckman selection and panel data models, we find that education and access to credit are associated with higher labor productivity, while households that experience shocks operate less productive enterprises. Furthermore we provide evidence that enterprises that operate throughout the year are more productive. We conclude that gender, education, shocks, access to finance, and location matter for labor productivity in rural Africa, and that policy decisions tackling the shortcomings could significantly contribute to a better business environment and increased labor productivity.
    Keywords: entrepreneurship, informal sector, labor productivity, rural development, Sub-Saharan Africa
    JEL: J43 L26 M13 O13 O55 Q12
    Date: 2014–10
  16. By: Colin-Castillo, Sergio
    Abstract: This research carries out a technical efficiency assessment for a small-scale fishery in Mexico. Technical efficiency (TE) is measured as the deviation of the firm (i.e. fisher) production from the best practice production frontier (Kumbhakar and Lovell 2000). Under TE, fishing production is assumed to be stochastic because the fishing is sensitive to different random factors including weather and other environmental influences (Squires et al. 2003). The analysis of TE of small-scale fisheries is relevant for several reasons. There is a little information on the small-scale fisheries real contribution to livelihoods and economies in developing countries (FAO 2009). The information on small-scale artisanal and recreational fisheries is scarcer and harder to track with 12 million fishers compared with 0.5 million in industrialized countries (Worm et al. 2009). Indeed, while this type of fishery is common in countries like Mexico, the number of analyses assessing their efficiency is very limited. These small-scale fisheries have the potential to generate significant profits and be more resilient to shocks and crises; two important elements to poverty alleviation and food security. But at the same time, these small-scale fisheries may overexploit stocks, harming the environment and generating only a marginal profit level (Gordon 1954; Anderson 1986). Aiming to identify and assess the variables that constrain TE, this research seeks to provide information that would help in the development of guidance as how to remedy production inefficiencies and provide information to define the strategies to use on the assistance of the fishing communities. Improving TE enhances harvest and may contribute to better use and distribution of scarce resources. It may even help to deal “partially” with the open access problem, but clearly, the decision maker need to be careful because increasing the catch may lead to a probable overexploitation of the resource, making the open access problem a more severe problem. Thus, TE output is a partial solution subject to the existence of a fishery management institution that procures the sustainable use of the fishery. As the fishers become more efficient they provide more food and increase their competitiveness representing a way to improve their profit and alleviate the poverty. Overall, while improving TE is only a part of the puzzle, a comprehensive analysis is required to improve the management of the fisheries. This analysis use data from the Lázaro Cárdenas reservoir (LCR), a small-scale fishery where commercial fishers face weak governmental regulation; as a result, the lake has been overharvested and used inefficiently (Tovar et al. 2009), introducing a classic common property situation. From a total of 148 fishers registered in the three cooperatives, only about 100 were active at the time of the survey. 111 fishers were interviewed, and then our survey is basically a census. From 111, only 89 observations were used after dropping one outlier and 21 others because of missing values. It is desirable to have proficient fishers but, what factors constrain efficiency? Aiming to contribute in the knowledge of small-scale fisheries, this study seeks to estimate the drivers of TE in LCR. The research hypothesis is that fisher skills and education level are the main contributors to technical efficiency. The empirical model to estimate TE follows Squires et al. (2003) and Grafton et al. (2000), using the production frontier approach proposed by Battese and Coelli (1995). The model includes labor, effort capacity (eci) to measure the fishing effort, and factor capacity (fci) to measure the inputs used in the fishing activity. Both eci and fci, result from a linear combinations of other variables to account for very different technologies. Effort capacity captures the energy used to move the vessel based on the fisher’s expenditure on gasoline and a dummy variable if the fisher rows the boat. Factor capacity is a proxy of capital stock, and it is a function of the number of nets used by the fisher and a dummy identifying if the fisher angles. Therefore, the model approach allows for the possibility that any fisher can use motor and row and use the net and angling. The technical efficiency equation to estimate the contribution of various factors to a fisher’s inefficiency includes the education level, the number of years of fishing experience, the time (years) that the fisher has using the boat, the number of persons in home to assess the family size of the fisher, the size of the boat, and three dummies to indicate if the fisher has taken a class to improve his fishing techniques, if the fisher shares the boat, and if fishing is the primary source of income. The model equations were jointly regressed using a maximum likelihood procedure, using the program Frontier 4.1 (Coelli and Henningsen 2011) in the statistical package “R.” The model tests favors a Cobb Douglas over a Translog, and it supports the truncated over the half normal distribution. In the production function variables, labor, eci and fci are significant and positive, and variables such as education, fishing experience, and training have a negative sign, thus they have a positive effect on efficiency. In other variables, time using the motor has a negative effect on efficiency; and family size and fisher income have a significant a positive effect to increase efficiency. The results are policy relevant. Knowing the factors that constrain TE brings a guide for policy makers to consider how efficiency can be improved. If the stock does not decline, it may increase the fishers’ revenue and hopefully reduce the poverty. However, it should be carefully assessed. As the fishery is a resource of open access, improvements in TE without restrictions on entry may lead to a faster collapse of fishery. Improving the net income of the fishers and avoiding the overexploitation of resource stock both need to be tackled. It is not an easy task, restrictions in the open access to control the overexploitation without a correct economic assessment could leave the fishers in more poverty. Moreover, measures implemented on the technology side partially solve the problem (Grafton 2006). Improving the fishing capital (nets, motors, boats) is one policy option, but it may be more effective improving the education level of the fishers. This research shows one element of the puzzle by emphasizing key variables to improve the efficiency, but a comprehensive analysis is required to improve the management. Previous research has emphasized the relevance of technology and fisher’s skills to improve the management of the fishery (Salas 2007; Hilborn 2007a; Grafton et al. 2006; Anderson 1986). This research not only corroborates previous research done for large fisheries, but also contributes in the knowledge of TE in small-scale fisheries. As Squires et al. (2003), Esmaeili (2006), and Akanni (2008, 2010), this assessment has a relatively high TE. This finding is interesting to corroborate in future research to see if most small-scale fisheries have a similarly high TE.
    Keywords: Technical efficiency, small-scale fisheries, stochastic frontier analysis, Environmental Economics and Policy, Production Economics, Productivity Analysis, D29, Q12, Q22, Q55, O33,
    Date: 2014
  17. By: Novignon, Jacob; Lawanson, Akanni
    Abstract: The purpose of the current study was to estimate efficiency of health systems in sub-Sahara Africa (SSA) and to compare efficiency estimates from various time-varying frontier models. The study used data for 45 countries in SSA from 2005 to 2011 sourced from the Word Bank World Development Indicators. Parametric time-varying stochastic frontier models were used in the analysis. Infant survival rate was used as the outcome variable, while per-capita health expenditure was used as main controllable input. The results show some variations in efficiency estimates among the various models. Estimates from the ‘true’ random effect model were however preferable after controlling for unobserved heterogeneity which was captured in the inefficiency terms of the other frontier models. The results also suggest a wide variation in the efficiency of health systems in sub-Sahara Africa. On average health system efficiency was estimated to be approximately 0.80 which implies resource wastage of about 0.20. Cape Verde, Mauritius and Tanzania were estimated to be relatively efficient while Angola, Equatorial Guinea and Sierra Leone were among the least performers in terms of health system efficiency. The findings suggest that the omission of unobserved heterogeneity may lead to bias in estimated inefficiency. The ‘true’ random effect model was identified to address the problem of unobserved heterogeneity. The findings also suggest a generally poor performance of health systems in terms of efficiency in the use of resources. While resource commitment to the health sector is critical, it is important to also ensure the efficient use of these resources. Improving the performance of institutions in the health sector may go a long way in improving the general health status of the African population
    Keywords: Efficiency, Health systems, health expenditure, SSA, SFA, 'True' random effect
    JEL: I00 I1 I12
    Date: 2014–07–11
  18. By: Meryem Duygun (Business School, Hull University, UK); Silvia Pazzi (School of Management, University of Leicester, UK); Emili Tortosa-Ausina (IVIE, Valencia and Department of Economics, Universidad Jaume I, Castellón, Spain); Simona Zambelli (Dipartimento di Scienze Aziendali, Università di Bologna, Italy)
    Abstract: This study explores the impact of ownership types on efficiency of Italian water utilities. Theories and evidence have shown a puzzling relationship between ownership and performance. Moreover, a recent study argues that this relationship can be further complicated by the effect of organisational and environmental variables. The current study aims to contribute to the debate about the impact of ownership structure on efficiency by including the effect of size and geographical location combining efficiency (obtained via nonparametric methods) with cluster analysis. The results show that ownership does not have a significant effect on efficiency per se; however the combination of size and geographical location provides interesting insights on the difference observed in the efficiency. Therefore, the paper argues that administrative reforms for institutional settings should consider a set of variables that characterise each organisation.
    Keywords: efficiency, water utilities, ownership, size, geographical location
    JEL: H4 H7 H83
    Date: 2014
  19. By: Duangbootsee, Uchook; Myers, Robert J.
    Abstract: The rice price support program (PSP) in Thailand is designed to support rice prices and raise incomes of rice farmers. However, it has been argued that the program only attracts participation from certain types of farmers, in particular larger and more efficient farmers with higher farm incomes. This raises the question of whether there is a difference in the technical efficiency of program participants and non-participants. This paper investigates two issues: (a) what are the key determinants of farmers’ decision to participate in the PSP? and (b) do program participants and non-participants use different rice production technologies and have different levels of technical efficiency. We take a stochastic frontier approach to answering these questions but because farmers self-select into the PSP the standard stochastic frontier model may lead to biased estimation. In response we augment the standard stochastic frontier model with a participation equation explaining the decision to participate in the PSP, and then use Heckman’s two-step estimation and Greene’s sample selection stochastic production frontier model to explore levels of technical efficiency among participants and non-participants. Results indicate that the participation decision is governed by key factors that include land size and the financial position of the farm. Results also show there is no strong evidence to support the presence of selectivity bias in the stochastic frontier estimates. In addition, a likelihood-ratio test indicates that participants and non-participants use the same frontier production technology. The analysis of technical efficiency reveals that participants are more technically efficient than non-participants. The findings therefore suggest that larger farmers participate more in the PSP and that these program participants tend to be more technically efficient farmers.
    Keywords: Technical efficiency, stochastic production frontier, selectivity bias, jasmine rice, Thailand, price support program, Agricultural and Food Policy,
    Date: 2014
  20. By: Joshua L. Rosenbloom; Donna K. Ginther; Ted Juhl; Joseph Heppert
    Abstract: This article examines the relationship between Research & Development (R&D) funding and the production of knowledge by academic chemists. Using articles published, either raw counts or adjusted for quality, we find a strong, positive causal effect of funding on knowledge production. This effect is similar across subsets of universities, suggesting a relatively efficient allocation of R&D funds. Finally, we document a rapid acceleration in the rate at which chemical knowledge was produced in the late 1990s and early 2000s relative to the financial and human resources devoted to its production.
    JEL: H50 I23 O31 O32 O38
    Date: 2014–10
  21. By: Wamisho, Kassu
    Keywords: International Development,
    Date: 2014–07
  22. By: Pawel Dziewulski; John Quah
    Abstract: Suppose we observe a finite number of input decisions made by a firm, as well as the prices at which those inputs were acquired.  What conditions on the set of observations are necessary and sufficient for it to be consistent with a firm choosing inputs to maximize profit, subject to a production function exhibiting production complementarities?  In this paper, we develop an axiomatic characterisation of this hypothesis and also develop a test that can be easily applied to finite data sets.
    Keywords: profit maximisation, production complementarities, supermodular production, modern manufacturing, cyclical monotonicity, quasilinear preferences
    JEL: D21 D24
    Date: 2014–09–10
  23. By: Deininger, Klaus; Monchuk, Daniel; Nagarajan, Hari K; Singh, Sudhir K
    Abstract: Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice by looking at inherited paddy and wheat plots to show that these issues matter empirically. While crop choice can mitigate effects, fragmentation as measured by the Simpson index increases production cost and fosters substitution of labor for machinery, especially for small and medium farmers. Greater distances between fragments have a smaller effect. Creating opportunities for market-based consolidation could be one step to limit fragmentation-induced cost increases.
    Keywords: Rural Development Knowledge&Information Systems,Crops and Crop Management Systems,Labor Policies,Economic Theory&Research,Regional Economic Development
    Date: 2014–11–01
  24. By: Jarzebowski, Sebastian; Bezat-Jarzeboski, Agnieszka; Klepacki, Bogdan
    Abstract: Due to the nature of the food supply chain an important aspect in the context of increasing the efficiency of agri-food companies may be an increase of the integration's degree in the chain. Therefore, exploring the relationships among these variables was found as an important research area and adopted as the goal of the paper. The paper is focused mainly on the theoretical background showing relationship between integration and performance. A description of the theoretical and methodological aspects of performance measurement and its extension (including the integration aspect) was also made in the paper. For an empirical illustration of the analyzed relationships two steps will be made. Firstly, the integration's degree in the food chain was measured. Secondly, the efficiency of the companies from the cereals processing industry in Europe was assessed. The SFA models (e.g. trans-logarithmic and Cobb-Douglas functional form) were used for assessment of efficiency. By using stochastic method (e.g. the SFA), one may show the influence of external variable (the integration in the supply chain) on the economic performance of enterprises.
    Keywords: integration, food supply chain, economic performance, Stochastic Frontier Analysis, Agribusiness, Food Consumption/Nutrition/Food Safety, Industrial Organization, Production Economics,
    Date: 2013–09
  25. By: Liu, Boying; Shumway, C. Richard
    Abstract: This paper reports meta-regressions of substitution elasticities between greenhouse-gas (GHG) polluting and nonpolluting inputs in agricultural production. We treat energy, fertilizer, and manure collectively as the “polluting input” and labor, land, and capital as nonpolluting inputs. We estimate meta-regressions for samples of Morishima substitution elasticities for labor, land, and capital vs. the polluting input. Much of the heterogeneity of Morishima elasticities can be explained by type of primal or dual function, functional form, type and observational level of data, input categories, the number of outputs, type of output, time period, and country categories. Each estimated long-run elasticity for the reference case, which is most relevant for assessing GHG emissions through life-cycle analysis, is greater than 1.0 and significantly different from zero. Most predicted elasticities remain significantly different from zero at the data means in the long run. These findings imply that life-cycle analysis based on fixed proportions production functions could provide grossly inaccurate measures of GHG of biofuel.
    Keywords: greenhouse gas polluting inputs, input substitution, life-cycle analysis, meta-regression, Morishima elasticity, production function., Environmental Economics and Policy, Production Economics, greenhouse gas polluting inputs, input substitution, life-cycle analysis, meta-regression, Morishima elasticity, production function.,
    Date: 2014
  26. By: Gehringer, Agnieszka; Prettner, Klaus
    Abstract: We analyze the impact of increasing longevity on technological progress within an R&D-based endogenous growth framework and test the model´s implications on OECD data from 1960 to 2011. The central hypothesis derived in the theoretical part is that - by raising the incentives of households to invest in physical capital and in R&D - decreasing mortality positively impacts upon technological progress and thereby also on productivity growth. The empirical results clearly confirm the theoretical prediction which implies that the ongoing demographic changes in industrialized economies are not necessarily detrimental to economic prosperity, at least as far as technological progress and productivity growth are concerned.
    Keywords: demographic change,longevity,productivity,technological progress,economic prosperity
    JEL: J11 O11 O40 O41
    Date: 2014
  27. By: Ziętara, Wojciech
    Abstract: Place and role of cattle production in Polish agriculture and in selected countries. Evaluation of production potential, organization of production, costs and effects on dairy farms (type 45) of the surveyed countries, depending on the economic size in 2008-2010. Assessment of production potential, organization of production, costs and effects on farms specializing in cattle (type 49) in the surveyed countries, depending on the economic size in 2008-2010. Comprehensive assessment of the efficiency of farms with cattle production in the surveyed countries. Efficiency of farms with cattle production by economic size, calculated using the DEA method. Factors significantly determining the change in income from agricultural activities on Polish dairy farms and cattle farms. Status and trends in beef production in Poland.
    Keywords: cattle production, Polish agriculture, dairy farms, production potential, organization of production, costs, effects, beef production, cattle farms, Livestock Production/Industries, Production Economics,
    Date: 2013
  28. By: Jacob Bikker; Adelina Popescu
    Abstract: This paper investigates the cost efficiency and competitive behaviour of the non-life - or property and casualty - insurance market in the Netherlands over the period 1995-2012. We focus on the 2006 health care reform, where public health care insurance has been included in the non-life insurance sector. We start with estimating unused scale economies and find that after the health care reform in 2006, unused scale economies are, at 21%, much higher than before the reform (4%), pointing to a relative increase of fixed costs. Scale inefficiencies are generally higher for smaller insurance and lower for large insurance companies. As a benchmark, we also estimate scale economies for non-health lines of business (LOB), which range from 5% to 10%. To measure competition directly, we apply a novel approach that estimates the impact of marginal costs as indicator of inefficiency on either market shares or profits. Over time, competition in health insurance has increased significantly, but the inclusion of the (non-competitive) public health care funds in the health insurance sector in 2006 caused a fall in the average level of competitive pressure. After the reform, competition continued to improve. In the non-health LOB non-life insurance, we find similar significant effects of efficiency on both market shares. The non-life effects are weaker than in life insurance, banking and non-financial sectors, suggesting less heavy competition.
    Keywords: competition; concentration; efficiency; non-life insurance; health care insurance; performance-conduct-structure model; scale economies; scope economies
    JEL: G22 H51 L11 L12 L13
    Date: 2014–09
  29. By: Bonanno, Alessandro; Costanigro, Marco; Bimbo, Francesco; Oude Lansink, Alfons; VIscecchia, Rosaria
    Abstract: Food manufacturers use health claims to signal higher product quality and attract health oriented consumers. However, consumers’ willingness to pay for health-related attributes may not be large enough to repay firms of the high costs associated with developing, certifying, and marketing such products. We investigate the impact of several health-related credence attributes on product’s price, and what may help manufacturers to reach consumers with the highest willingness to pay for yogurt. To achieve our goals we use a large database of yogurt sales in Italy and two empirical approaches recently introduced in the hedonic price literature: Quantile Regression (QR) and Stochastic Frontier Analysis (SFA). Results show that the implicit prices of health claims differ across price levels (i.e. quantiles), and that manufacturers differ in their ability to target consumers with high willingness to pay.
    Keywords: Hedonic price, Price Dispersion, Incomplete Information, Quantile Regression, Stochastic Frontier, Agribusiness, Demand and Price Analysis, Marketing, Q11, Q13, I12,
    Date: 2014
  30. By: Kevin S. Nell (Center for Economics and Finance, University of Porto); A.P. Thirlwall (School of Economics, University of Kent)
    Abstract: The purpose of this paper is to explain differences in the productivity of capital across countries taking 84 rich and poor countries over the period 1980-2011, and to test the orthodox neoclassical assumption of diminishing returns to capital. The marginal product of capital is measured as the ratio of the long-run growth of GDP to a country’s investment ratio. Twenty potential determinants are considered using a general-to-specific model selection procedure. Education, government consumption, geography, export growth, openness, political rights and macroeconomic instability turn out to be the most important variables. The data also suggest constant returns to capital, so investment matters for long-run growth.
    Keywords: new growth theory, investment, productivity of capital
    JEL: O11 O33 O43 O47
    Date: 2014–11
  31. By: Belyaeva, Maria; Hockmann, Heinrich; Koch, Friedrich
    Abstract: Russia is often considered the most prominent country to become a leader on the world grain market. However, several issues slow down Russia’s agricultural progress, for example: a lack of infrastructure and investments, unequal regional development, and inefficient use of production technologies. This study therefore examines the grain production potential of Russian regions by employing a modified approach to stochastic frontier analysis that allows us to include not only production technologies, but also indicators of country’s heterogeneity and diversity among regions. Obtained results indicate that climate conditions in combination with the level of human and institutional development, and infrastructure have significant effect on the production structure of regions and therefore should not be neglected while assessing regional policies and production potential.
    Keywords: Production Economics,
    Date: 2014–05–19
  32. By: Huttel, Silke; Wildermann, Lutz
    Abstract: This paper sets out to empirically analyse land price formation in Saxony-Anhalt with the aim to quantify the impact of sellers’ and acquiring parties’ structural identity on land prices. We use a hedonic price regression with a detailed data set covering the years 2009–2010. Besides productivity, neighbourhood and location attributes, we control for the major privatization agency as a seller, farmers as sellers or buyers and if tenants purchase the land. The model is estimated using spatial-econometric techniques where weight matrices are not only based on pure air distances, but also on travel time. We further take into account that price levels of adjacent parcels have an impact but only if they are observed prior to the respective price formation process. We find that prices realised by the major privatization agency are on average higher, and if the former tenant purchases the land, a lower price is realized.
    Keywords: farmland prices, hedonic model, spatial correlation, spatio-temporal model, Demand and Price Analysis, Land Economics/Use, Q 11, Q 15, D 44, C 21,
    Date: 2014–09
  33. By: Julia Lane; Jason Owen-Smith; Rebecca Rosen; Bruce Weinberg
    Abstract: Longitudinal micro-data derived from transaction level information about wage and vendor payments made by federal grants on multiple U.S. campuses are being developed in a partnership involving researchers, university administrators, representatives of federal agencies, and others. This paper describes the UMETRICS data initiative that has been implemented under the auspices of the Committee on Institutional Cooperation. The resulting data set reflects an emerging conceptual framework for analyzing the process, products, and impact of research. It grows from and engages the work of a diverse and vibrant community. This paper situates the UMETRICS effort in the context of research evaluation and ongoing data infrastructure efforts in order to highlight its novel and valuable features. Refocusing data construction in this field around individuals, networks, and teams offers dramatic possibilities for data linkage, the evaluation of research investments, and the development of rigorous conceptual and empirical models. Two preliminary analyses of the scientific workforce and network approaches to characterizing scientific teams ground a discussion of future directions and a call for increased community engagement.
    JEL: D85 J0 O3
    Date: 2014–11

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.