nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2015‒01‒31
forty-five papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Beyond benchmarks: DEA study of Kansas Farm Productivity. By Quintana-Ashwell, Nicolas E. ; Featherstone, Allen M.
  2. A Chronological Study of Total Factor Productivity and Agricultural Growth in U.S. Agriculture By Dutta, Ritwik ; Saghaian, Syed
  3. Efficiency Analysis of Southeastern U.S. Meat Goat Production By Qushim, Berdikul ; Gillespie, Jeffrey ; McMillin, Kenneth
  4. Using the information about dairy herd’s genetic level and milk quality in explaining the technical efficiency of Estonian dairy farms: a two-stage (DEA and Tobit) approach By Luik, Helis ; Viira, Ants-Hannes ; Värnik, Rando
  5. Labour productivity on farms in the CEE EU member countries (2004–2011) By Takács, István ; Takács-György, Katalin
  6. The Impact of the 2008 Economic Crisis on Dynamic Productivity Growth of the Spanish Food Manufacturing Industry. An Impulse Response Analysis By Kapelko, Magdalena ; Oude Lansink, Alfons ; Stefanou, Spiro
  7. The Economics and Productivity of Organic versus Non-organic U.S. Dairy Farms By Nehring, Richard ; Gillespie, Jeffrey ; Hallahan, Charles ; Sauer, Johannes
  8. A Comparative Analysis of Technical Efficiency and Input Allocation Decisions of Farm Lenders in the Commercial Banking Industry and the Farm Credit System during the Late 2000s Recession By Song, Minrong ; Li, Xiaofei ; Escalante, Cesar
  9. Technical Efficiency of Organic Farming in the Alpine Region – the Impact of Farm Structures and Policies By Lakner, Sebastian ; Kirchweger, Stefan ; Hoop, Daniel ; Brümmer, Bernhard ; Kantelhardt, Jochen
  10. Technical Inefficiency and Its Determinants in US Wheat Production By Neupane, Diwash ; Moss, Charles
  11. Productivity growth of dairy farms having conventional vs. automatic milking system By Heikkilä, Anna-Maija ; Myyrä, Sami
  12. Labor Productivity Growth: Disentangling Technology and Capital Accumulation By Michele Battisti ; Massimo Del Gatto ; Christopher F. Parmeter
  13. Environmentally harmful by-products in efficiency analysis: An example of nitrogen surplus on Swiss dairy farms By Mamardashvili, Phatima ; Jan, Pierrick
  14. The Heterogeneity of FDI in Sub-Saharan Africa – How Do the Horizontal Productivity Effects of Emerging Investors Differ from Those of Traditional Players? By Birte Pfeiffer ; Holger Görg ; Lucia Perez Villar
  15. The Heterogeneity of FDI in Sub-Saharan Africa – How Do the Horizontal Productivity Effects of Emerging Investors Differ from Those of Traditional Players? By Birte Pfeiffer ; Holger Goerg ; Lucia Perez-Villar
  16. Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency By Minviel, Jean Joseph ; Latruffe, Laure
  17. Energy and Environmental Efficiency of Greenhouse Growers in Michigan By Dong, Zefeng ; Guan, Zhengfei ; Grogan, Kelly A. ; Skevas, Theodoros
  18. The Spanish productivity puzzle in the Great Recession. By Laura Hospido ; Eva Moreno-Galbis
  19. The productivity of family and hired labour in EU arable farming By Kloss, Mathias ; Petrick, Martin
  20. International Linkages, Value Added Trade and LAC Firms' Productivity By Pierluigi Montalbano ; Silvia Nenci ; Carlo Pietrobelli
  21. Heterogeneity in Technology and Efficiency – Specifics of the Food Processing Industry in the Visegrád Countries By Cechura, Lukas ; Hockmann, Heinrich
  22. Import Penetration, Intermediate Inputs and Firms’ Productivity in the EU Food Industry By Olper, Alessandro ; Curzi, Daniele ; Raimondi, Valentina
  23. How Relevant is the Choice of Risk Management Control Variable to Non-parametric Bank Profit Efficiency Analysis? By Richard Simper ; Maximilian J.B. Hall ; Wenbin B. Liu ; Valentin Zelenyuk ; Zhongbao Zhou
  24. Impact of contract-farming in staple food chains: the case of rice in Benin By Vande Velde, Katrien ; Maertens, Miet
  25. A spatial analysis of the farm structural change: the case study of Tuscany region By Landi, Chiara ; Bartolini, Fabio ; Rovai, Massimo
  26. A Distance Function Model with Good and Bad Outputs By Bokusheva, Raushan ; Kumbhakar, Subal C.
  27. Disproportionate joint cost allocation at individual-farm level using maximum entropy By Lips, Markus
  28. Evaluation of land use based greenhouse gas mitigation measures in Germany By Röder, Norbert ; Henseler, Martin ; Liebersbach, Horst ; Kreins, Peter ; Osterburg, Bernhard
  29. Effectiveness of the bean seed dissemination models implemented under the Bean Technology Dissemination (BTD) Project: Results of key informant interviews in Guatemala, Honduras and Nicaragua By Reyes, Byron ; DeYoung, David ; Maredia, Mywish
  30. Productivity, nationalization, and the role of "news": lessons from the 1970s By Cakir Melek, Nida
  31. The Economic Impact of Hybrid Rice in the Mid-South By Lanier, Nalley ; Jesse, Tack
  32. Individual determinants of inventor productivity: Report and preliminary results with evidence from linked human capital and patent data By Frosch, Katharina ; Harhoff, Dietmar ; Hoisl, Karin ; Steinle, Christian ; Zwick, Thomas
  33. Is Strawberry Advisory System (SAS) Feasible for Farmers of All Risk Preference Profiles? By Vorotnikova, Ekaterina ; Borisova, Tatiana ; VanSickle, John
  34. Industrialization: Why Britain Got There First By Nicholas Crafts
  35. Intra-Firm Spillovers? The Stock and Flow Effects of Collocation By Evan Rawley ; Robert Seamans
  36. Capital-Skill Complementarity: Does capital disaggregation matter? By Correa, Juan ; Lorca, Miguel ; Parro, Francisco
  37. Estimating Management Practice Complementarity between Decentralization and Performance Pay By Bryan Hong ; Lorenz Kueng ; Mu-Jeung Yang
  38. Determinants of bank profits and its persistence in Indian Banks: A study in a dynamic panel data framework By Sinha, Pankaj ; Sharma, Sakshi
  39. Indentifying the sector bias of technical change By Thomas von Brasch
  41. Strategies regarding input use on dairy farms in Austria - results of a cluster and matching analysis By Kirchweger, Stefan ; Eder, Michael ; Kantelhardt, Jochen
  42. Financial Repression and Bond Market Efficiency: the Case of Italy during World War II By Kim Oosterlinck
  43. A Perceptual Measure of Innovation Performance: Micro Level Evidence from Turkey By Fındık, Derya ; Beyhan, Berna
  44. International diversification and performance in agri-food firms By Raúl Serrano ; Marta Fernández-Olmos ; Vicente Pinilla
  45. A Comparison of Market Exit Prices between Kentucky Dairy Producers and Average United States Dairy Producers By Nolan, Derek T. ; Saghaian, Sayed

  1. By: Quintana-Ashwell, Nicolas E. ; Featherstone, Allen M.
    Abstract: This paper investigates productivity growth as measured by the Malmquist productivity index (MPI) among a sample of 331 Kansas farms between the years 1993 and 2011. The MPI index is decomposed to explore the main sources of productivity growth. Technical change (TC) is found to be the main driver of productivity growth. Previous literature cites relative prices as influential factors affecting technical change and effciency. Two-way fixed effect regressions of efficiency and productivity measures on relative prices and lagged productivity are conducted. It is shown that past performance is a significant determinant in productivity, while statistical significance of different input and output prices vary. It is suggested that the direction of influence may be the opposite as cited in previous literature, so that past productivity improvements, and associated farm profitability, results in increased input prices.
    Keywords: Productivity, Malmquist index, Data Envelopment Analysis, Technical change, Scale efficiency, Production Economics, Productivity Analysis, Q00, Q12,
    Date: 2014
  2. By: Dutta, Ritwik ; Saghaian, Syed
    Abstract: A Chronological Study of TFP and Agricultural Growth in U.S. Agriculture
    Keywords: Total Factor Productivity(TFP), Trans-logarithmic Production Function, Agricultural Productivity, Intermediate Inputs, Residual Measure, Food Security and Poverty, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, Q19, Q20,
    Date: 2015
  3. By: Qushim, Berdikul ; Gillespie, Jeffrey ; McMillin, Kenneth
    Abstract: Technical efficiency, scale and scope economies, marginal productive contributions for inputs and outputs, and efficiency drivers were determined for the Southeastern U.S meat goat enterprise. The average technical efficiency was 0.88. We find increasing returns to scale and scope economies for Southeastern U.S. meat goat enterprises.
    Keywords: Meat goat, SPF, IDF, Technical efficiency, Scale and scope economies, Returns to scale, Farm Management, Production Economics, Productivity Analysis, Q10, Q12,
    Date: 2015
  4. By: Luik, Helis ; Viira, Ants-Hannes ; Värnik, Rando
    Abstract: This paper investigates the effects of dairy herd’s genetic level and milk quality on the technical efficiency (TE) of Estonian dairy farms in 2012. A two-stage approach was used that combined data envelopment analysis (DEA), for finding the TE scores, and Tobit regression, for estimating the effects of the chosen variables on farm TE. Our results indicate that relative breeding value for milk production, which is a measure of herd’s genetic level, has a positive effect on farm TE. Milk quality affects TE also positively: higher somatic cell counts decreased and higher content of milk solids increased farm TE.
    Keywords: technical efficiency, dairy farms, breeding values, milk quality, DEA, Productivity Analysis,
    Date: 2014–08
  5. By: Takács, István ; Takács-György, Katalin
    Abstract: The agriculture of the new member of the European Union joined 2004 was significantly behind the majority of the 15 former EU member countries both from technical and productivity perspectives. In the common market the competitiveness of products and producers is a key factor. One important factor of competitiveness is labour productivity, which can be divided into partial factors that could be the technical equipment and the productivity of those tools. The study examines the changes of these two partial productivity factors at the former EU member and at the group of countries integrated in 2004.
    Keywords: agriculture, technical supply, efficiency, competitiveness, disadvantage, Productivity Analysis,
    Date: 2014–08
  6. By: Kapelko, Magdalena ; Oude Lansink, Alfons ; Stefanou, Spiro
    Abstract: The paper examines the impact of 2008 economic crisis on the dynamic productivity growth and its components using a firm-level dataset of Spanish meat processing, dairy processing and oils and fats firms. The impulse response analysis by local projections shows that the impact of crisis on dynamic productivity growth varies between sectors with negative and persistent in oils and fats, no significant in meat, and positive and persistent in dairy processing industry. The paper documents further that occurrence of crisis involves increases in dynamic technical change across industries, which are offset by the negative impact of dynamic technical inefficiency change.
    Keywords: Data Envelopment Analysis, dynamic Luenberger productivity growth indicator, economic crisis, impulse response analysis, food processing industry, Productivity Analysis,
    Date: 2014–08
  7. By: Nehring, Richard ; Gillespie, Jeffrey ; Hallahan, Charles ; Sauer, Johannes
    Abstract: We estimate a production function for U.S. dairy farming to examine the productivity of organic and non-organic dairy production by system and size. Across organic/non-organic systems and size classes, size is the major determinant of competitiveness based on various measures of productivity and returns to scale.
    Keywords: Production Function, Organic, Dairy, Farm Management, Livestock Production/Industries, Production Economics, Productivity Analysis,
    Date: 2015–01–15
  8. By: Song, Minrong ; Li, Xiaofei ; Escalante, Cesar
    Abstract: This paper applies the stochastic Translog input distance function and stochastic frontier analysis (SFA) method to evaluate the operational efficiency of farm lenders in the commercial banking industry and the Farm Credit System (FCS). This paper uses the late 2000s recession as a backdrop for scrutinizing the operating decisions of commercial banks and FCS lending units. The model is applied as a comparative analytical frame work to analyze the operating strategies and efficiencies of commercial banks and FCS lending units. Moreover, under the same efficiency analytical framework, this study investigates the effect of the size of lending operations on the lenders’ efficiency and input allocation decisions. This study also adopts an intertemporal perspective by looking at comparative commercial banks and FCS efficiency before and after the most recent financial crisis. The study’s analyses of changes in both technical efficiency (TE) and allocative efficiency (AE) will help clarify the contributions of different factors to total factor productivity change and, thus help commercial banks and FCS make future operating adjustments to maximize total factor productivity. This analysis may clarify any differences in input allocations and other operating decisions that define small and large lenders’ strategies to survive the tight financial conditions of the late 2000s.
    Keywords: stochastic frontier analysis, Technical efficiency, allocative efficiency, Agricultural Finance,
    Date: 2015
  9. By: Lakner, Sebastian ; Kirchweger, Stefan ; Hoop, Daniel ; Brümmer, Bernhard ; Kantelhardt, Jochen
    Abstract: The paper investigates the impact of subsidies and of para-agriculture on the technical efficiency of organic farms in Switzerland, Austria and Southern Germany. The data-set consists of bookkeeping data with 1,704 observations in the years 2003 to 2005. Technical efficiency is modelled using a stochastic distance-frontier model combined with a Metafrontier-model. The results show almost no efficiency differences among the farms in the three countries. Para-agriculture shows a strong impact on farm’s efficiency and output in Austria and Switzerland, whereas in Germany the effect is rather small. The study confirms that agricultural subsidies have a direct impact on farm’s efficiency.
    Keywords: Technical Efficiency, Organic Farming, Grassland Farming, Para-Agriculture, Environmental Economics and Policy, Productivity Analysis, Q12, Q18, D24, C54,
    Date: 2014–08
  10. By: Neupane, Diwash ; Moss, Charles
    Abstract: This paper investigates technical inefficiency in four of the major wheat-producing states in the US. The findings show that the inefficiency of wheat production varied widely in these states and has a mean value of 16 percent. Increase moisture level has positive impact on the mean efficiency while wheat’s share acreage has negative impact on efficiency.
    Keywords: Productivity Analysis,
    Date: 2015
  11. By: Heikkilä, Anna-Maija ; Myyrä, Sami
    Abstract: The aim of this study was to determine whether the switch from conventional milking systems (CMS) to automatic milking systems (AMS) has positive effects on the productivity growth. Production function analysis was implemented over a rotating panel data of 323 Finnish dairy farms during the period of 2000–2011. The total factor productivity growth was 1.7% per year on farms that stayed in CMS and 3.1% per year on farms that had switched to AMS. The improvement was linked to overall reforms in production technology and an expansion in herd size but the adoption of AMS intensified the positive development.
    Keywords: milk production, technology, productivity growth, Productivity Analysis,
    Date: 2014–08
  12. By: Michele Battisti (University of Palermo, CeLEG LUISS Guido Carli and RCEA ); Massimo Del Gatto (G.d'Annunzio University and CRENoS ); Christopher F. Parmeter (Department of Economics, University of Miami )
    Abstract: We adopt a counterfactual approach to decompose labor productivity growth into growth of Technological Productivity (TEP), growth of the capital-labor ratio and growth of Total Factor Productivity (TFP). We bring the decomposition to the data using international countrysectoral information spanning from the 1960s to the 2000s and a nonparametric generalized kernel method, which enables us to estimate the production function allowing for heterogeneity across all relevant dimensions: countries, sectors and time. As well as documenting substantial heterogeneity across countries and sectors, we nd average TEP to account for about 44% of labor productivity growth and TEP gaps with respect to the US to remain almost unchanged, on average, despite an average 1% yearly decrease in the labor productivity gap. The US displays the highest TEP growth rate. We then perform standard convergence regressions nding strong evidence of technological convergence and showing that the eect of a few variables only, among those found significant to explain labor productivity convergence, occurs through the technology channel.
    Keywords: TFP, Aggregate Productivity, Technology, Nonparametric Estimation, Convergence Publication Status: Under Review
    JEL: C14 D24 O41 O47
    Date: 2014–09–30
  13. By: Mamardashvili, Phatima ; Jan, Pierrick
    Abstract: Beside desirable outputs, farming generates environmentally harmful by-products. In this article, we include nitrogen surplus of farms in the representation of the production technology and assessed performance of farms. We measure environmental efficiency (EE) in the framework of a translog output distance function. EE shows by how much a farm can reduce its nitrogen surplus, given multiple inputs and multiple outputs. The study use bookkeeping data on dairy farms in the mountainous region of Switzerland. The analyses show that considering nitrogen surplus has a minor effect on the ranking of farms in terms of technical efficiency. Further, the results indicate relatively low average values for EE, suggesting a need for additional policy measures to reduce farm nitrogen surpluses.
    Keywords: efficiency analysis, environmental performance, nitrogen pollution, dairy farms, Productivity Analysis,
    Date: 2014–08
  14. By: Birte Pfeiffer ; Holger Görg ; Lucia Perez Villar
    Abstract: This paper analyzes the horizontal productivity effects of foreign direct investment (FDI) from industrialized and developing countries in 10 sub-Saharan African countries. We establish a unique data set by combining data from the World Bank Enterprise Surveys that allow us to distinguish between foreign investors from sub-Saharan Africa, Asia, Europe, the Middle East, and North Africa. We find strong evidence of horizontal productivity spillovers to domestic firms derived from foreign-firm presence. However, these effects are clearly dependent on domestic firms’ absorptive capacity. The largest productivity effects seem to be driven by investors from sub-Saharan Africa. Our analysis also shows that productivity effects differ according to the income level of host countries. Overall, the strongest productivity effects seem to materialize in lower-middle-income countries. These key findings emphasize the increasing importance of emerging investors, beyond the traditional players from industrialized countries, in sub-Saharan Africa
    Keywords: foreign direct investment, productivity, South–South firms, spillovers, sub-Saharan Africa
    JEL: F23
    Date: 2015–01
  15. By: Birte Pfeiffer (GIGA German Institute of Global and Area Studies ); Holger Goerg (Christian-Albrechts-University Kiel ); Lucia Perez-Villar (Christian-Albrechts-University Kiel )
    Abstract: This paper analyzes the horizontal productivity effects of foreign direct investment (FDI) from industrialized and developing countries in 10 sub-Saharan African countries. We establish a unique data set by combining data from the World Bank Enterprise Surveys that allow us to distinguish between foreign investors from sub-Saharan Africa, Asia, Europe, the Middle East, and North Africa. We find strong evidence of horizontal productivity spillovers to domestic firms derived from foreign-firm presence. However, these effects are clearly dependent on domestic firms’ absorptive capacity. The largest productivity effects seem to be driven by investors from sub-Saharan Africa. Our analysis also shows that productivity effects differ according to the income level of host countries. Overall, the strongest productivity effects seem to materialize in lower-middle-income countries. These key findings emphasize the increasing importance of emerging investors, beyond the traditional players from industrialized countries, in sub-Saharan Africa.
    Keywords: foreign direct investment, productivity, South–South firms, spillovers, sub-Saharan Africa
    Date: 2014–12
  16. By: Minviel, Jean Joseph ; Latruffe, Laure
    Abstract: Predicting and investigating the impact of subsidisation on farm technical efficiency are becoming critical issues in applied policy analysis. This paper presents a meta-regression analysis of empirical results on this issue, based on logistic regressions and data gathered from a systematic literature review from 1972 to 2014. The review reveals that subsidisation is commonly negatively associated with farm technical efficiency. Estimation results show that the direction (negative, positive or null) of the observed effects is sensitive to the way subsidies are modelled in the empirical studies, but robust to farming systems studied, estimation methods used, and geographical areas considered.
    Keywords: technical efficiency, subsidies, farms, meta-regression analysis, multinomial probit model, Agricultural and Food Policy, Productivity Analysis,
    Date: 2014–08
  17. By: Dong, Zefeng ; Guan, Zhengfei ; Grogan, Kelly A. ; Skevas, Theodoros
    Abstract: Agricultural production in greenhouses is an important user of energy and can lead to greenhouse gas emissions. This study uses Data Envelopment Analysis to compute input-based technical efficiency measures and energy efficiency of Michigan greenhouse growers. A two-limit Tobit model is used to investigate the determinants of farmers’ performance. The empirical results indicate that Michigan greenhouse farmers do not use energy and other inputs efficiently. Farmers’ input-specific efficiency can be improved by adopting greenhouse film types other than double layer poly.
    Keywords: Horticulture, Data envelopment analysis, Energy use, Tobit model, Efficiency, Crop Production/Industries, Production Economics, Q12,
    Date: 2015–01
  18. By: Laura Hospido (Banco de España ); Eva Moreno-Galbis (GRANEM )
    Abstract: While Spain has traditionally underperformed its European peers in terms of labor productivity, the trend reverses after 2007. The evolution of aggregate productivity in Spain during the Great Recession is shaped largely, albeit not exclusively, by the adverse conditions in the labor market. Using a longitudinal sample of Spanish manufacturing and services companies between 1995 and 2012, we show that the recent increase in Spanish aggregate productivity is also responsive to the behavior of total factor productivity (TFP) and to composition effects. By combining the information at firm level on balance sheet items, collective agreements and imports-exports, we are able to establish that a collective agreement at the firm level and access to external markets are positively related to TFP performance during the whole period. In addition, our estimates indicate that firm TFP was negatively correlated to the proportion of temporary workers during the expansionary period, 1995-2007, whereas the sign of that correlation reversed during the crisis, 2008-2012. Finally, we relate this sign reversal to the changing composition of temporary workers in the labor market.
    Keywords: labor productivity, TFP, temporary workers, collective agreements, exporting firms
    JEL: J24 J21 J52
    Date: 2015–01
  19. 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, hired labour is more productive than family members in countries traditionally characterised by family farms, 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 labour being more productive than hired labour. In this situation supervision by family members could increase productivity.
    Keywords: labour productivity, production function estimation, European Union, FADN, Labor and Human Capital, Productivity Analysis,
    Date: 2014–08
  20. By: Pierluigi Montalbano ; Silvia Nenci ; Carlo Pietrobelli
    Abstract: This paper addresses the following research questions: i) are firms characterized by international linkages more productive than other firms? ii) are those belonging to industries more involved in GVCs even more productive? To this end, we combine the WB Enterprise Survey dataset with the new OECD-WTO TiVA dataset and present three main empirical exercises: 1) an analysis of productivity premia associated with participation in international trade and presence of inward FDI; 2) a Cobb-Douglas output function expanded to firms international linkages; 3) a further expanded version of the above relationship including the TIVA-based indicators of value added trade and industry participation and position in global value chain. Our empirical outcomes confirm the presence of a positive causal relationship between participation in international activities and firm performance in the LAC region. Focusing on four big Latin American countries we show that the actual level of involvement into GVCs matters as well.
    Keywords: International Trade; Trade in Value a dded; Global value chains; Firm productivity.
    JEL: F14 D24 L22 O54
    Date: 2014–12
  21. By: Cechura, Lukas ; Hockmann, Heinrich
    Abstract: The paper analyses the food processing industry in Visegrád countries. In particular, it deals with the analysis of heterogeneity in technology and efficiency. The introduced theoretical framework allows to capture inter- and intrasectoral differences in technology as well as the country specifics. The results show that both intersectoral heterogeneity and heterogeneity among firms are an important characteristic of EU food processing industry. Moreover, the country specific effects were pronounced for Czech, Hungarian and Polish dairy sector, Czech feedstuff sector, Polish, Hungarian and Slovak slaughtering sector. Moreover, we found that on average the food processing companies highly exploit their production possibilities. However, some food processing companies are falling behind. This holds for Slaughtering and Dairy sector in all Visegrád countries.
    Keywords: Visegrád countries, food processing, heterogeneity, technology, efficiency., Productivity Analysis,
    Date: 2014–08
  22. By: Olper, Alessandro ; Curzi, Daniele ; Raimondi, Valentina
    Abstract: The aim of this contribution is to study empirically the effect of trade liberalization on productivity growth exploiting a large micro-dataset of more than 20,000 French and Italian food firms, over the 2004-2012 period. This relationship has been studied focusing on import penetration at both industry and upstream sectors level, to investigate the role played by imports in intermediate inputs. Main findings show that import penetration in both final products and intermediate inputs systematically contributed to firm-level productivity growth. Yet, the productivity growth effect induced by import penetration in upstream sectors is 10 times higher than the one at the industry level. Horizontal import competition coming from the EU15 and OECD countries exerts the strongest effect on productivity growth. By contrast, when vertical import penetration is considered, also sourcing intermediate inputs from emerging markets appears important for firms’ productivity growth. Finally, we also find a strong confirmation that the effects of import penetration are increasing with the initial level of firms’ productivity. All these stylized facts may have interesting policy implications.
    Keywords: import penetration, intermediate inputs, firm-level TFP, food industry, Food Consumption/Nutrition/Food Safety, Production Economics, F14, F15, F61, L66, Q17,
    Date: 2015
  23. By: Richard Simper (University of Nottingham, England ); Maximilian J.B. Hall (Loughborough University, England ); Wenbin B. Liu (University of Kent, England ); Valentin Zelenyuk (School of Economics, The University of Queensland ); Zhongbao Zhou (Hunan University, P. R. China )
    Abstract: Adopting a profit-based approach to the estimation of the technical efficiency of South Korean banks over the 2007Q3 to 2011Q2 period, we systematically analyse, within a non-parametric DEA analysis, how the choice of risk management control variable impacts upon such estimates. Using the model of Liu et al. (2010), we examine the dependency of the estimated technical efficiency scores on the chosen risk control variables embracing loan loss provisions and equity as good inputs and non-performing loans as a bad output. We duly find that, both for individual banks and banking groups, the mean estimates are indeed model dependent although, for the former, rank correlations do not change much at the extremes. Based on the application of the Simar and Zelenyuk (2006) adapted Li (1996) test, we then find that, if only one of the three risk control variables is to be included in such an analysis, then it should be loan loss provisions. We also show, however, that the inclusion of all three risk control variable is to be preferred to just including one, but that the inclusion of two such variables is about as good as including all three. We therefore conclude that the optimal approach is to include (any) two of the three risk control variables identified. The wider implication for research into bank efficiency is that the optimal choice of risk management control variable is likely to be crucial to both the delivery of un-biased estimates of bank efficiency and the specification of the model to be estimated.
    Keywords: South Korean Banks,Risk Management,Efficiency,DEA
    JEL: C23 C52 G21
    Date: 2014–12
  24. By: Vande Velde, Katrien ; Maertens, Miet
    Abstract: Research on the impact of smallholder contract-farming largely focuses on exportoriented high-value commodities. Little is known about the possibility of contract-farming for upgrading in staple food chains. While theoretical insights predict contract-farming to be infeasible for lower-value staple food crops, empirical evidence from such sectors is extremely scarce. In this paper, we provide evidence on smallholder contract-farming in the rice sector in Benin. We use cross-sectional household data and propensity score matching methods to analyze the impact of contract-farming on selected farm performance indicators. The findings indicate that contract-farming has a positive impact on rice productivity and income.
    Keywords: contract-farming, farm productivity, staple food, rice, Benin, Institutional and Behavioral Economics,
    Date: 2014–08
  25. By: Landi, Chiara ; Bartolini, Fabio ; Rovai, Massimo
    Abstract: This paper aims at investigating the factors affecting relative changes in the average farm size over the period 2000-2010. The objective has been pursued applying an empirical investigation in Tuscany region through observation aggregated at municipality level. By applying spatial analysis and spatial econometric techniques, spatial distribution and determinants of different farm size are detected. Results showing the relevance of spatial analysis, pointed out that farm household and territorial characteristics, such as the productivity, single farm payments and being located at plain altitude, positively affect the average farm size since these agricultural holdings are eased to pursue economies of scale.
    Keywords: structural change, spatial econometrics, municipality data, average farm size, Land Economics/Use,
    Date: 2014–08
  26. By: Bokusheva, Raushan ; Kumbhakar, Subal C.
    Abstract: We present an approach that pursues an adequate representation of product transformation possibilities for a technology generating, in addition to marketed (good) products, some environmentally detrimental non-marketed byproducts (bad outputs). As the shadow price of a non-marketed output depends on its marginal transformation rates with marketed outputs, representation of technological relationships between different groups of outputs deserves a particular attention. We model the technology by using two functions: an input distance function describing technically feasible input-output combinations, and a hedonic output function capturing relationships among good and bad outputs. This procedure offers more appropriate consideration and modeling of the interactions between different groups of outputs. An empirical application of the approach to the case of Dutch dairy farms1 demonstrates the complexity of interactions between outputs and the value of more elaborate representations of production possibilities. The analysis indicates that nitrogen surplus abatement costs vary widely among Dutch dairy farms and that these costs have increased substantially over time.
    Keywords: Input distance function, Hedonic aggregate output function, Shadow price, Dairy farms, Research Methods/ Statistical Methods,
    Date: 2014–08
  27. By: Lips, Markus
    Abstract: This paper addresses the allocation of joint cost among enterprises – also called ‘production branches’ or ‘activities’ – and presents an approach based on maximum entropy and standard costs from farm-management literature as allocation factors. The approach allows us to discard the widely applied assumption of a proportional joint cost allocation. Since it provides a disproportionate joint cost allocation, the distinctive feature of the approach is that it favours the adjustment of large standard costs rather than of small ones.
    Keywords: joint cost allocation, maximum entropy, Productivity Analysis, Research Methods/ Statistical Methods,
    Date: 2014–08
  28. By: Röder, Norbert ; Henseler, Martin ; Liebersbach, Horst ; Kreins, Peter ; Osterburg, Bernhard
    Abstract: Agricultural production contributes 11% to the total German greenhouse gas (GHG) emissions. We evaluate the efficiency of three different land use based GHG mitigation measures: production of feedstocks for biomethane production, short rotation coppices and peatland restoration. We evaluate these measures with respect to cost efficiency (GHG mitigation costs), mitigation potential and impact on agricultural production. We use the regional supply model RAUMIS to investigate the different mitigation measures at the sector and regional level. We extended the modeling framework of RAUMIS to integrate the effects of leakage and indirect land use change. Compared to the production and use of feedstock for bio-energies, peatland restoration is the most cost efficient measure and has the least impact on German agricultural production.
    Keywords: agricultural production, regional supply model, agro-economic model, peatland restoration, bioenergy, Environmental Economics and Policy,
    Date: 2014–08
  29. By: Reyes, Byron ; DeYoung, David ; Maredia, Mywish
    Keywords: Seed system, evaluation, common beans, Phaseolus vulgaris, agricultural research, Nicaragua, Honduras, Guatemala, improved varieties, Bean Technology Dissemination Project, key informant interviews, Agricultural and Food Policy, Crop Production/Industries, Farm Management, Food Security and Poverty, International Development, Production Economics, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies, O3, O130, Q16, Q55, Q18, Q12,
    Date: 2014–12
  30. By: Cakir Melek, Nida (Federal Reserve Bank of Kansas City )
    Abstract: The number of occurrences of an old phenomenon, expropriation of foreign-owned property, had peaked in the 1970s, and virtually every significant oil-producing developing country had nationalized its oil. Nationalization again was on the rise in the 2000s. Using novel data, this paper examines nationalization and its effect on productivity. First, we document historical global trends in expropriations, and examine the effect from the 1960s to the 1990s in a sample of oil-producing developing countries. We show that nationalization brings significant productivity losses. Then, we focus on Venezuela, presenting new extensive and detailed data. In Venezuela, productivity fell sharply immediately ahead of nationalization. We suggest a less-explored channel through which nationalization affects productivity: in anticipation of nationalization, producers reduce exploration, lower employment, and increase extraction. Guided by a quantitative dynamic partial equilibrium framework for nonrenewable resources disciplined by features of the Venezuelan data, we then examine the effect of nationalization on productivity. A comparison of the simulated and time series shows that the carefully calibrated model can explain 84 percent of the productivity pattern over 1961-1980 in the Venezuelan oil industry.
    Date: 2014–06–01
  31. By: Lanier, Nalley ; Jesse, Tack
    Abstract: This study quantified the economic impact of the introduction of RiceTec® hybrid rice in the mid-south (Arkansas, Louisiana and Mississippi). Third party data were collected from The University of Arkansas and Mississippi State University for yield, head rice yield, and milled rice yield for 23 locations throughout the Mississippi and Arkansas Delta from 2003-2013. Weather data (temperature, relative humidity and solar radiation) were compiled daily for each station so that yield estimates could account for genetic differences in responses to various climatic anomalies. As such, credible yield estimates could be obtained by year, location and variety (hybrid, conventional, Clearfield and Clearfield hybrids) to estimate premiums or discounts relative to a base (in this study the base is conventional and Clearfield lines). Using existing publically available data on percentage of acreage planted to hybrids and Clearfield hybrids a total state “hybrid and Clearfield hybrid premium” in bushels per acre could be estimated. These premiums were multiplied by 2014 USD rice prices to obtain a “total gain” associated to the RiceTec® breeding program. Given that yields were estimated for each “type” of rice an associated standard deviation of yield could also be obtained to illustrate yield variability across these types. From this a simulation was run to simulate 10,000 rice varieties associated with each “type” of rice. University Extension production budgets were then used to estimate cost of production (which included different seed herbicide costs) for each type of rice to obtain a profit function. As such, head-to-head comparisons could be made in terms of profitability between two sets of variety substitutes: (1) hybrid vs conventional and (2) Clearfield vs Clearfield hybrid. Lastly, IMPLAN was used to estimate the “value added” defined as “the sum of employee compensation, proprietary income, other property-type income and indirect business taxes” associated with the additional rice produced attributed to the RiceTec® hybrid program.
    Keywords: Hybrid Rice, Clearfield, Rice Breeding, Crop Production/Industries, Production Economics, Q16, Q11,
    Date: 2015–02–03
  32. By: Frosch, Katharina ; Harhoff, Dietmar ; Hoisl, Karin ; Steinle, Christian ; Zwick, Thomas
    Abstract: This report offers new insights into the drivers of inventor productivity at the individual level. It includes well-known drivers, such as inventor age and education, and controls for inventor team size, and firm/applicant information, as well as period and technology field effects derived from patent data. In addition, it adds inventor characteristics that have been largely neglected in existing studies on inventor productivity, such as the breadth of work experience, divergent thinking skills, cognitive problem-solving skills, the use of knowledge sourced from networks within and outside of the inventors' field of expertise, and personality traits. The empirical model draws on a new dataset that matches information about inventors' human capital, such as creative skills, personality traits, networks, and career biographies (collected with a self-administered survey) with patenting histories for 1932 German inventors between the years 1978 and 2012 for clean technology, nanotechnology, and mechanical elements. Our results indicate that the additional inventor characteristics double the proportion of total variation of productivity explained by individual characteristics. Furthermore, we find differences in the importance of individual characteristics across industries and along the productivity distribution, between more and less productive inventors.
    Date: 2015
  33. By: Vorotnikova, Ekaterina ; Borisova, Tatiana ; VanSickle, John
    Abstract: The Strawberry Advisory System (SAS) was developed to improve temporal precision of fungicide application. Based on Net Present Value (NPV), it outperforms the traditional fungicide application method given weather and market conditions typical for Florida (Vorotnikova et al., 2014). This study uses stochastic dominance and efficiency with respect to a function (SDRF and SERF) criterion to rank ten-year NPV for SAS-based and traditional fungicide application methods, given a range of farmers’ risk preferences. SERF is a valuable tool because it incorporates a utility function and a range of decision-maker risk preferences. Data from two production experiments were used: 1) research trials at the University of Florida’s farm, and 2) field experiments at seven commercial strawberry farms, located in different Florida counties. Each experiment included two diseases, anthracnose and Botrytis, and two cultivars, more- and less-disease resistant. The results based on research trials show that for both diseases and cultivars, the SAS-based method is the most preferred given any farmers’ risk aversion levels. However, the results based on results from commercial farms show that while the SAS-based method ranks higher for the more-resistant cultivar, the traditional fungicide application method is preferred for the less-resistant cultivar, for any farmers’ risk preference.
    Keywords: stochastic efficiency, risk, production, Agribusiness, Production Economics, Risk and Uncertainty,
    Date: 2015–01–15
  34. By: Nicholas Crafts (The University of Warwick )
    Abstract: This paper provides an introductory overview of the British Industrial Revolution. The dimensions of growth are discussed as well as notable recent explanations for Britain’s primacy. Obstacles to faster growth are considered as well as advantages that were conducive to stronger TFP growth. In this context, reasons for the long delay before steam power had any significant impact on productivity are highlighted. Some implications of Britain’s early start to modern economic growth for subsequent economic performance are noted. The paper concludes that precocious British industrialization is much easier to explain than the timing of the acceleration of technological progress.
    Keywords: industrialization; invention; industrial revolution; TFP growth
    Date: 2014
  35. By: Evan Rawley ; Robert Seamans
    Abstract: We examine the impact of collocation on local within-firm performance, or intra-firm spillovers, by decomposing spillovers into one-time stock and recurring flow effects. Stock effects include one-time learning effects. Flow effects include ongoing resource sharing as well as cannibalization. Using data on the population of U.S. hotels and restaurants from 1977-2007, we exploit changes in the number of collocated establishments owned by the same firm to estimate the relative importance of stock and flow benefits. We find that collocation improves the productivity of new and existing establishments by 1-2%, even when correcting for endogenous sorting into collocation. The results, in conjunction with our field work, suggest that collocation generally facilitates the transfer of knowledge within the firm, but that flow effects of collocation are more sensitive to the broader economic environment.
    Date: 2015–01
  36. By: Correa, Juan ; Lorca, Miguel ; Parro, Francisco
    Abstract: Using Chilean manufacturing plants data, we�find: (1) the elasticity of substitution between capital and skilled labor is lower than the elasticity of substitution between capital and unskilled labor, and (2) the higher the technological component of the capital stock the larger the size of complementarity between capital and skilled labor. Our�findings show that capital, as an aggregate input, may under(over) state the complementarity between labor and the type of capital these workers actually use.
    Keywords: capital-skill complementarity, technological capital, translog function
    JEL: D24 J24 L60
    Date: 2014–03
  37. By: Bryan Hong ; Lorenz Kueng ; Mu-Jeung Yang
    Abstract: The existence of complementarity across management practices has been proposed as one potential explanation for the persistence of firm-level productivity differences. However, thus far no conclusive population-level tests of the complementary joint adoption of management practices have been conducted. Using unique detailed data on internal organization, occupational composition, and firm performance for a nationally representative sample of firms in the Canadian economy, we exploit regional variation in income tax progression as an instrument for the adoption of performance pay. We find systematic evidence for the complementarity of performance pay and decentralization of decision-making from principals to employees. Furthermore, in response to the adoption of performance pay, we find a concentration of decision-making at the level of managerial employees, as opposed to a general movement towards more decentralization throughout the organization. Finally, we find that adoption of performance pay is related to other types of organizational restructuring, such as greater use of outsourcing, Total Quality Management, re-engineering, and a reduction in the number of layers in the hierarchy.
    JEL: D2 H32 J33 L2 M1 M5
    Date: 2015–01
  38. By: Sinha, Pankaj ; Sharma, Sakshi
    Abstract: The paper studies the impact of bank specific, industry specific and macroeconomic factors affecting profitability of Indian Banks in a dynamic model framework. The persistence of bank profits and endogeneity of the factors have been accounted for using Generalised Method of Moments (GMM) as suggested in Arellano & Bond, 1991.The panel data for the study have been obtained from 42 Indian Scheduled Commercial Banks for the period from 2000 to 2013 .The lag of bank profits variable ROA has been found to be significantly indicating moderate degree of persistence of profits in Indian Banking Industry. This shows that the product markets of Indian Banks are moderately competitive, and less opaque due to asymmetry in information. The Indian banking sector is not far away from becoming a perfectly competitive industry. Bank specific variables; capital to assets ratio, operating efficiency and diversification have been found to be significantly and positively affecting the bank profits. Credit risk, measured by provisions for bad debts, negatively impacts the bank profitability. The study also tests the Structure conduct Hypothesis (SCP) by using Herfindahl – Hirschman Index (HHI) and finds evidence in its support. Bank profits responds positively to the GDP growth, indicating that bank profits are pro-cyclical to the growth of economy whereas the increase in inflation rate affects bank profits negatively .It is observed that the crisis period did not make any significant effect on profitability of banks .The study concludes that there is a moderate degree of persistence of bank profits and most of the determinants of profits have a positive and a significant impact on profitability of banks which implies that Indian Banks in the last decade have been moving towards efficiency and dynamism.
    Keywords: Profitability Determinants, Credit risk, Operational efficiency, Persistence, Market power
    JEL: C4 C40 G1 G20 G21
    Date: 2014–11–11
  39. By: Thomas von Brasch (Statistics Norway )
    Abstract: The empirical literature studying the sector bias of technical change has only focused on skill-biased technical change. In this paper, I analyse the sector bias of both factor-neutral and factor-biased technical change. In Norwegian data from 1972 to 2007 the empirical evidence is not clear on the impact of a sector bias of skill-biased technical change, but it points to a sector bias of factor-neutral technical change from the 1970s to the 1990s. That said, the impact of the sector bias seems to have reduced towards the latter part of the sample period. I also evaluate the cross-section model used in the literature and show the strong restrictions that must be placed on a vector equilibrium correction model to end up with the standard model. If these restrictions do not hold, the results reported in the literature may be biased. I show that the restrictions are strongly rejected, and that erroneously imposing them significantly changes the estimates of skill-biased technical change in many sectors. These results can, to some extent, be traced back to how the cross-section model ignores initial disequilibrium and imposes factors of production to be either complements or substitutes
    Keywords: Econometric modeling; Technical change; Sector bias.
    JEL: C5 J3 O3
    Date: 2015–01
  40. By: Mattia Tassinari ; Marco R. Di Tommaso (University of Ferrara )
    Abstract: The economic crisis has shown the weakness of some Italian industries, calling for an effective policy response for promoting innovation of the national system. In this context, the ability to evaluate the presence of cooperative forms of innovation and of open innovation practices becomes extremely important in order to define efficient and effective industrial policy strategies. The purpose of this paper is to assess the different degree of openness of innovation processes in Italian manufacturing industries, in order to get useful information for industrial policy decisions. The analysis is conducted through the construction of two different composite indicators. The first, the Open Innovation Index (OII), provides a ranking of the Italian manufacturing industries on the basis of the different degree of openness of innovation processes of enterprises. The second, the Economic Performance Index (EPI), aims to classify manufacturing industries considering the sectoral performance in term of innovative capacity, productivity and ability to promote economic growth. Some policy implications are derived from the comparison between the two rankings.
    Keywords: Open Innovation, Industrial Policy, Manufacturing, Composite Indicator
    JEL: O32 L14
    Date: 2014–12
  41. By: Kirchweger, Stefan ; Eder, Michael ; Kantelhardt, Jochen
    Abstract: In order to increase competitiveness of their farms, dairy farmers select certain strategies regarding input use. We identify these strategies in an agricultural bookkeeping dataset and assess economic impacts of the strategy selection under volatile prices situations using cluster analysis and direct covariates matching. We find one low-input cluster with low levels of input use and three clusters with rather higher input levels. Those clusters differ in site conditions, farm size and milk production but have similar farm income. Furthermore the results indicate that low-input farms are competitive under volatile markets.
    Keywords: Dairy Farming, Farm Competitiveness, Farm Strategies, Cluster Analysis, Matching Method, Livestock Production/Industries,
    Date: 2014–08
  42. By: Kim Oosterlinck
    Abstract: This paper investigates the informational efficiency of bond markets when investments are constrained by financial repression. To assess informational efficiency, this paper performs weak-form efficiency tests on the most liquid bond traded in Italy during the war. Surprisingly, the bond market is informationally efficient even in this repressed environment. In this regard, econometrical techniques aimed at signalling important historical events and the beliefs of contemporaries regarding the outcome of war may provide correct insights even in highly controlled markets.
    Keywords: WWII; Bond Markets; Efficiency
    JEL: N24
    Date: 2015–01–07
  43. By: Fındık, Derya ; Beyhan, Berna
    Abstract: This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process oriented impacts of innovation. Among these three groups, product and process oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product oriented impact of innovation.While product oriented impact are larger for small firms, large firms focus more on process oriented impact. Anova results also indicate that perceptions on process oriented impact significantly differ among exporter firms, domestic market oriented firms and firms being active in internal and external markets. Process oriented impact generate results in favor of exporting firms.
    Keywords: innovation impact, product oriented impact, process oriented impact
    JEL: L2 M1 M2 O3
    Date: 2014–12
  44. By: Raúl Serrano (Faculty of Economics and Business Studies, Universidad de Zaragoza ); Marta Fernández-Olmos (Faculty of Economics and Business Studies, Universidad de Zaragoza ); Vicente Pinilla (Faculty of Economics and Business Studies, Universidad de Zaragoza )
    Abstract: : This paper studies the relationship between international diversification and performance in agri-food firms In line with the recent literature, it analyses the effects of the degree of internationalization using a uniform sample, a long-term focus and a measure that combines export intensity and regional diversification. The study empirically confirms the hypothesis of a horizontal S-curve relationship between diversification and performance and identifies three phases. Novice export firms are found in the first stage; their profits are low because they incur in the initial costs of exporting. Mature companies with a more advanced internationalization process are in the second stage; they benefit from the positive outcomes of operating at a larger scale. Lastly, the third stage contains internationally over-diversified companies; their performance decreases as a result of costs to enter extra-regional markets, which are especially steep in this sector, and dealing with greater organisational complexity
    Keywords: : Agribusiness, International diversification, Firm performance, Degree of Internationalization
    JEL: F23 L66 Q13
    Date: 2015–01
  45. By: Nolan, Derek T. ; Saghaian, Sayed
    Abstract: The number of dairy operations and cow numbers in the United States is declining. This leads to the question of whether the decline is nationwide or in specific areas of the country and what regional effects may cause a drop in cow cumbers. This question was analyzed in many ways. Using the GLM procedure in SAS it was determined that total operating cost and profit margin were significantly different in regions of the country. Change in cow numbers however was not significantly affected by the total operating cost or profit margin received by dairy producers. Even though the southeast region experienced the highest profit margins they also accounted for the highest drop in cow numbers. These results suggest that region of the country is significant when analyzing operating costs and profit margins but does not explain the drop in dairy cattle.
    Keywords: dairy, market exit, profit margin, operating cost, Farm Management,
    Date: 2015

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