nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2016‒01‒29
eleven papers chosen by

  1. A Generalized Stochastic Production Frontier Analysis of Technical Efficiency of Rice Farming: A Case Study from Assam, India By Aditi Bhattacharyya; Raju Mandal
  2. Territorial capital and Polish regional development. A neoclassical approach By Tomasz Brodzicki; Dorota Ciołek
  3. Climate, Technological Change and Economic Growth By George Adu and Paul Alagidede
  4. The Impact of Extension Services on Farm Level Outcomes: An Instrumental Variable Approach By Cawley, A.P; Heanue, K.; O’Donoghue, C.; Sheehan, M.
  5. Immigrant Diversity and Complex Problem Solving By Abigail Cooke; Thomas Kemeny
  6. What Makes Rural Households Use Traditional Fuel? Empirical Evidence from India By Aditi Bhattacharyya; Daisy Das
  7. The impact of the CAP and its reforms on the productivity growth in agriculture By Arovuori, Kyösti; Yrjölä, Tapani
  8. Absenteeism and productivity: the experience rating applied to employer contributions to health insurance By Sébastien Ménard; Coralia Quintero Rojas
  9. An Establishment of Agroclusters as a key for the development of Agro-Processing Industry in Uzbekistan By Hasanov, Shavkat; Sanaev, Golib; Ganiev, Ibragim
  10. Spatial Heterogeneity In Production Functions Models By Billé, AG; Salvioni, C.; Benedetti, R.
  11. Business Models to Realize the Potential of Renewable Energy and Energy Efficiency in the Greater Mekong Subregion By Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB); Asian Development Bank (ADB)

  1. By: Aditi Bhattacharyya (Department of Economics and International Business, Sam Houston State University); Raju Mandal (Department of Economics, Assam University, Silchar, India)
    Abstract: Purpose: This study analyzes farm-level technical inefficiency of rice farming in Assam, India, using a multiple-output generalized stochastic frontier framework. Design/Methodology/Approach: Primary data for this study was collected in 2009-2010 from 310 farm-households in four non- contiguous districts of Dhubri, Morigaon, Dibrugarh, and Cachar that are located in different agro-climatic regions of Assam. Based on a Cobb-Douglas production function for multiple rice varieties, the paper simultaneously estimates the Generalized Stochastic Production Frontier and examines effects of exogenous factors on farm-level technical inefficiency. Findings: Results of this study show that the average technical inefficiency of farms is 8.5% in the sample. Further, inefficiency is lower in the frequently flood prone areas, and availability of government support helps reduce such inefficiency as well. However, technical efficiency is higher for the Muslim farm-households, and it decreases with greater land fragmentation. The study also finds that the use of primitive technology like bullock reduces technical effciency of rice farming. Originality/Value: This paper is based on a novel data set that has specially been collected to examine productivity and efficiency of rice cultivation in the flood plains of Assam that has not been studied before. Further, to the best of our knowledge, this paper is the first one to model rice production as a multiple-output stochastic production frontier and analyze technical efficiency of rice production accordingly.
    Keywords: Generalized Stochastic Production Frontier, Rice Farming, Technical Inefficiency, India
    JEL: D24 Q12
    Date: 2016–01
  2. By: Tomasz Brodzicki (University of Gdansk, Faculty of Economics, Gdańsk, Poland; Institute for Development, Sopot, Poland); Dorota Ciołek (Institute for Development, Sopot, Poland; University of Gdansk, Faculty of Economics, Department of Macroeconomics, Gdańsk, Poland)
    Abstract: The interaction between space (location) and the processes of accumulation (growth) is one of the most interesting and at the same time the most difficult areas of modern economic theory. The theoretical and empirical results to date are however largely unsatisfactory. In our analysis we proposed the way how to implement the space into the neoclassical Solow-Swan growth model. Territorial capital, as a specific carrier of the concept of territorial cohesion, is significantly different from the classical factors of production such as physical capital or labor input. It cannot be considered as a factor directly responsible for changes in the volume of production. However, territorial capital can have an impact on the productivity of basic factors of production such as capital and labor. Thus, when defining the function of production, we assume that territorial capital does not affect production directly, but it affects total factor productivity (TFP) indirectly, contributing to an increase in the production. In this paper we present our research findings on the contribution of various elements of territorial capital to regional growth in Poland. The study adopts a highly spatially disaggregated NUTS-4 level, i.e. counties, for which interactions and relationships of a spatial and territorial nature are particularly relevant.
    Keywords: regional development, TFP determinants, territorial capital, spatial econometrics
    JEL: O40 O47 R11 R12 C31
    Date: 2015–08
  3. By: George Adu and Paul Alagidede
    Abstract: This paper investigates the incentive for developing adaptation technology in a world with changing climate within the directed technical change framework. Consistent with the market size effect, we show that technological change will tend to be biased in favour of the sector that employs the greater share of the work force over time, when the inputs are sufficiently substitutable. An economy with dominant climate sensitive sector can maintain sustained economic growth if it is capable of undertaking frontier innovations in the form of adaptation technology that increases the productivity of the inputs employed in the climate sensitive sector.
    Keywords: climate change, Climate sensitive sector, economic growth, Technological change
    JEL: O31 O32 O33 O44 Q55
    Date: 2016
  4. By: Cawley, A.P; Heanue, K.; O’Donoghue, C.; Sheehan, M.
    Abstract: Many studies show that interaction with extension services impact farmer’s technology adoption decisions and profitability levels. However, analysis of extension impact across all farm systems whilst controlling for endogeneity biases is less common. This research attempts to redress that research gap by firstly discussing the various biases related to the motivation to engage with extension services, omitted variable bias and measurement error, and subsequently applying instrumental variable (IV) regression estimation to the relationship between extension engagement and farm level outcomes, namely family farm income over a pooled panel dataset. Distance to the local advisory office and the introduction of a policy change were chosen as valid and relevant instruments. The results indicate a positive impact of extension engagement on farm income, and imply that an ordinary least squares approach underestimates the benefits of extension engagement. Accordingly, increased advisory activity could improve the performance of the sector significantly, and this could be a useful policy tool to achieve the targets as set out by the Irish governments Food Wise 2025 plan.
    Keywords: extension services, farm performance, endogeneity, instrumental variable regression, panel data, Agricultural and Food Policy,
    Date: 2015
  5. By: Abigail Cooke; Thomas Kemeny
    Abstract: In the growing literature exploring the links between immigrant diversity and worker productivity, recent evidence strongly suggests that diversity generates productivity improvements. However, even the most careful extant empirical work remains at some remove from the mechanisms that theory says underlie this relationship: interpersonal interaction in the service of complex problem solving. This paper aims to `stress-test' these theoretical foundations, by observing how the relationship between diversity and productivity varies across workers differently engaged in complex problem solving and interaction. Using a uniquely comprehensive matched employer-employee dataset for the United States between 1991 and 2008, this paper shows that growing immigrant diversity inside cities and workplaces offers much stronger benefits for workers intensively engaged in various forms of complex problem solving, including tasks involving high levels of innovation, creativity, and STEM. Moreover, such effects are considerably stronger for those whose work requires high levels of both problem solving and interaction.
    Keywords: immigration, diversity, complex problem solving, spillovers, productivity, human capital
    Date: 2016–01
  6. By: Aditi Bhattacharyya (Department of Economics and International Business, Sam Houston State University); Daisy Das (North Eastern Hill University, Shillong, Meghalaya, India)
    Abstract: This paper investigates the effects of different types of cooking fuels on the technical efficiency of household meal production in rural India. Rural households in India use for cooking either traditional fuels like firewood, dung, crop residue, and coal or modern fuels like liquefied petroleum gas (LPG) and kerosene, or a combination of both traditional and modern fuels. Using the stochastic frontier method, this paper estimates the influence of different types of cooking fuel and other household level characteristics on the technical efficiency of household meal production. We use a representative sample of 3880 rural households from the India Human Development Survey, 2008. Our results indicate that efficiency of meal preparation is significantly higher when households use either a traditional or a combination of both traditional and modern fuels than if they use modern fuels alone. Thus, results of this paper shed light on reasons other than cost behind the overwhelming popularity of traditional fuels in spite of their adverse health and environmental effects. This result is likely to be driven by the capacity constraint imposed by LPG and kerosene burners in cooking a large quantity of food at a time. Our study identifies use of traditional fuel as a viable option for reducing energy poverty in rural India, and recommends extensive policy for supplying improved wood burning cook stoves and afforestation to reduce the harmful pollution effects of open fire. The policy makers should also emphasize on provision of biogas plant and biomass gasifier along with afforestation. Further, our study recognizes the need for developing and supplying more efficient cooking stoves for modern fuels to promote higher use of clean energy sources. Our results also suggest policy intervention in improving women’s education, household income, provision of ration card, and providing government support in acquiring improved cooking stoves for increasing efficiency of meal production at the household level.
    Keywords: Meal production; Modern fuel, Technical efficiency; Traditional fuel; Stochastic frontier analysis
    JEL: Q40 D24
    Date: 2016–01
  7. By: Arovuori, Kyösti; Yrjölä, Tapani
    Keywords: Common Agricultural Policy CAP, productivity, agricultural value added per worker, Agricultural and Food Policy,
    Date: 2015–10–07
  8. By: Sébastien Ménard; Coralia Quintero Rojas
    Date: 2015
  9. By: Hasanov, Shavkat; Sanaev, Golib; Ganiev, Ibragim
    Abstract: The aim of the study is to review the agricultural sector of Uzbekistan with the purpose of identifying the major constraints of development of the sector with special emphasis on fruit and vegetable subsectors, thereby to suggest policy recommendations for the development of the sector. Fruits and vegetables market and its supply chain potential has been studied in case of Samarkand region. Although analysis of recent reforms has provided opportunities for liberalization and modernization of agricultural production and marketing system in Uzbekistan especially for fruit and vegetable subsector, there is still a precondition for sustainable development of subsector. Hence policy suggestions are still in their implementation stage. Specific recommendations were also outlined pertaining to the key constraints identified; namely, pertaining to agricultural production and productivity, quality of land resources, irrigation, reforms, R&D, and agricultural marketing.
    Keywords: Samarkand region, agricultural marketing, agro-processing, agroclusters, fruit and vegetable subsector, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Food Consumption/Nutrition/Food Safety, International Development, Marketing, Production Economics, Productivity Analysis,
    Date: 2014–11
  10. By: Billé, AG; Salvioni, C.; Benedetti, R.
    Keywords: Agricultural and Food Policy,
    Date: 2015
  11. By: Asian Development Bank (ADB); Asian Development Bank (ADB) (Southeast Asia Department, ADB); Asian Development Bank (ADB) (Southeast Asia Department, ADB); Asian Development Bank (ADB)
    Abstract: This report was produced under the technical assistance project Promoting Renewable Energy, Clean Fuels, and Energy Efficiency in the Greater Mekong Subregion (TA 7679). It provides outlines of business models relevant to pursuing the renewable energy and energy efficiency targets adopted by the five Greater Mekong Subregion countries: Cambodia, the Lao People’s Democratic Republic, Myanmar, Thailand, and Viet Nam. Business models for investments in renewable energy and energy efficiency provide policy makers and investors with alternative business methods for the deployment of new technologies, or for the application of well-established technologies and practices in new settings.
    Keywords: energy efficiency, business models, renewable energy, gms, asian development bank, cambodia, lao pdr, myanmar, thailand, viet nam, lahmeyer internationa gmbh, cambodia ministry of mines and energy, lao pdr ministry of energy and mines, myanmar ministry of energy, thailand department of alternative energy development and efficiency, electricity regulatory authority of viet nam, climate change, public-private partnership, ownership business models, multiparty ownership, lease or hire purchase model, dealer credit business model, user cooperative business model, energy performance contracting, decentralized systems, centralized grid-scale systems, build-own-operate-transfer, energy service company, community biogas
    Date: 2015–07

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