nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2016‒04‒30
38 papers chosen by
Angelo Zago
Università degli Studi di Verona

  1. Technical Efficiency and Its Determinants in China's Hog Production By Tian, Xu; Sun, Feifei; Zhou, Yingheng
  2. Smallholder Teff Productivity and Efficiency: Evidence from High-Potential Districts of Ethiopia By Bachewe, Fantu Nisrane; Koru, Bethelihem; Taffesse, Alemayehu Seyoum
  3. Technical and efficiency changes in oilseed sector in India: Implications for policy By Kurup, Suresh; Jha, Girish; Singh, Alka
  4. Efficiency of the Retail Industry: Case of inelastic supply functions By KONISHI Yoko; NISHIYAMA Yoshihiko
  5. Trends and Determinants of Research Driven Total Factor Productivity in Indian Wheat By R, Sendhil; P, Ramasundaram; P, Anbukkani; Singh, Randhir; Sharma, Indu
  6. Foreign Firm Ownership and Productivity Spillovers in the Southern African Development Community (SADC) Region By Paul J Dunne and Nicholas Masiyandima
  7. The Use of Panel Quantile Regression for Efficiency Measurement: Insights from Monte Carlo Simulations By Audrey Laporte; Adrian Rohit Dass
  8. Misallocation, Establishment Size, and Productivity By Pedro Bento; Diego Restuccia
  9. Determinants of MD2 Adoption, Production Efficiency and Technology Gaps in the Ghanaian Pineapple Production Sector By Mensah, Amos; Brummer, Bernhard
  10. Cross-Border M&As and Eco-Environmental Performance of European Energy Utilities By Evgenii Monastyrenko
  11. The Impact of Service Offshoring on Agriculture and Food Sector Productivity Using the World Input-Output Table By Seok, Jun Ho; Saghaian, Sayed H.
  12. MODELLING BANKRUPTCY USING HUNGARIAN FIRM-LEVEL DATA By Péter Bauer; Marianna Endrész
  13. Analysis of Economic Efficiency and Farm Size: A Case Study of Wheat Farmers in Nakuru District, Kenya By Mburu, Samuel; Ackello-Ogutu, Chris; Mulwa, Richard
  14. How Common Crop Yield Measures Misrepresent Productivity among Smallholder Farmers By Reynolds, Travis W.; Anderson, C. Leigh; Slakie, Elysia; Gugerty, Mary Kay
  15. The Effects of Contract Farming on Efficiency and Productivity of Small-Scare Sunflower Farmers in Tanzania By Henningsen, Arne; Mpeta, Daniel F.; Adem, Anwar S.; Kuzilwa, Joseph A.; Czekaj, Tomasz G.
  16. Household level spillover effects from biofuels: Evidence from Ethiopia By Riera, Olivia; Swinnen, Jo
  17. Labor Market Performance and the Farm Size-Productivity Relationship in Rural India By Deininger, Klaus; Jin, Songqing; Liu, Yanyan; Singh, Sudhir
  18. On the Determinants of High Productivity in Rice Farming in Irrigated Areas in Senegal: Efficiency of Large-Scale bs. Small-Scale Irrigation Schemes By Sakurai, Takeshi
  19. Reconciling the Firm Size and Innovation Puzzle By Anne Marie Knott; Carl Vieregger
  20. Import Penetration, Intermediate Inputs and Firms’ Productivity in the EU Food Industry By Olper, Alessandro; Curzi, Daniele; Raimondi, Valentina
  21. Farmers’ willingness-to-pay for farmland based on machinery efficiency and precision technology adoption By Griffin, Terry; Shockley, Jordan
  22. Did technical change in agricultural production decrease the emission of pollutants on the Amazon Forest during 1990-2009? By Silva, Felipe; Fulginiti, Lilyan E.; Perrin, Richard K.
  23. Incentives and Moral Hazard: Plot Level Productivity of Factory-Operated and Outgrower-Operated Sugarcane Production in Ethiopia By Wedimu, Mengistu A.; Henningsen, Arne; Czekaj, Tomasz G.
  24. Impact of Improved Farm Technologies on Yields: The Case of Improved Maize Varieties and Inorganic Fertilizers in Kenya By Ogada, Maurice; Nyangena, Wilfred
  25. EFFICIENCY EVALUATION OF RICE PRODUCTION IN BANGLADESH By Regmi, Madhav; Oladipo, Obembe; Jason, Bergtold
  26. Valuation of water in large-scale agricultural land investments in Mali: Efficiency and equity trade-offs By Sidibe, Yoro; Williams, Timothy O.
  27. Impacts of Surface Ozone Pollution on Crop Productivity: Evidence from Winter Wheat in China By Yi, Fujin; Jiang, Fei; Zhong, Funing; Ding, Aijun; Zhou, Xun
  28. Gender differences in peanut productivity and post-harvest practices: Evidence from Haiti By Kostandini, Genti; Rhoads, James; Johnson, Rob; Carroll, Eric; Schwartzbord, Jeremy
  29. Modelling the effects of low-inpu dairy farming using bookkeeping data from Austria By Kirchweger, Stefan; Eder, Michael; Kantelhardt, Jochen
  30. Efficiency Measure in Nitrogen Pollution Management under U.S. Trade Induced Cotton Production By Yeboah, Osei; Thomas, Terrence W.; Gunden, Cihat; Ogbole, Enekole J.
  31. Do Financial Constraints Affect Production Efficiency in Drought Prone Areas? A Case from Indonesian Rice Growers By Khanal, Aditya; Koirala, Krishna; Regmi, Madhav
  32. ICT use, competitive pressures and firm performance in Mexico By Iacovone,Leonardo; Pereira Lopez,Mariana De La Paz; Schiffbauer,Marc Tobias
  33. Out-of-pocket health payments: a catalyst for agricultural productivity growth, but with potentially impoverishing effects By Sene, Ligane Massamba; Badiane, Ousmane
  34. The dynamics of latin american agricultural production growth, 1950-2008 By Miguel Martín-Retortillo; Vicente Pinilla; Jackeline Velazco; Henry Willebald
  35. The impact of firms' expectations & adjustments on the productivity cost of illness By Michal Jakubczyk; Beata Kon
  36. Do the EU food processors abuse Oligopsony market power? By Cechur, Lukas; Hockmann, Heinrich; Levkovych, Inna
  37. Forecasting California Pesticide Demand using PUR Dataset By Asci, Serhat; Yamazaki, Fumiko; Paggi, Mechel
  38. Water Scarcity and Irrigation Efficiency in Egypt By Osman, Rehab; Ferrari, Emanuele; McDonald, Scott

  1. By: Tian, Xu; Sun, Feifei; Zhou, Yingheng
    Abstract: China’s hog production is undergoing a great transformation due to the soaring demand and changing raising system. Regarding the essential role of pork in Chinese diet, a systematic analysis on the productivity and efficiency of hog production can provide significant implications for policy makers. This paper investigates the productivity and efficiency of hog production and determinants of technical efficiency in China using a household level panel data (2004-2010). A stochastic frontier translog production function with scaling property in inefficiency term is adopted for hog production analysis, and the determinants of technical efficiency are incorporated in a one-step estimation using maximum likelihood estimation. Our results show that the average technical efficiency of hog production in China is 0.5914. More importantly, we find that specialized farmers have higher technical efficiency than others, and technical efficiency in the eastern region is higher than that in central and west China.
    Keywords: Technical efficiency, Hog production, China, International Development, Livestock Production/Industries,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212718&r=eff
  2. By: Bachewe, Fantu Nisrane; Koru, Bethelihem; Taffesse, Alemayehu Seyoum
    Abstract: Smallholder agriculture focused policies predominated Ethiopia in the last two decades. Such policies are being questioned recently on grounds including research that show large-holders perform better in multi-factor productivity indices. We apply data envelopment analysis on recently collected data set to measure smallholder teff producers' relative productivity and efficiency. The results indicate that an average household is less than half as productive as optimal households and that there is therefore a considerable opportunity for output growth at current acreage. Analyses explaining differences in productivity indicate that productivity improves with, among others, schooling, specialising in few crops, access to credits, access to information on modern production methods directly through extension and indirectly through neighbourhood learning effects. While the data used is not inconsistent with the inverse farm size-yield relationship results of analyses indicate multi-factor productivity measures improve after a threshold of teff area.
    Keywords: data envelopment analysis, productivity, efficiency, smallholder farmers, Africa, Ethiopia., Agribusiness, Agricultural and Food Policy, International Development,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212257&r=eff
  3. By: Kurup, Suresh; Jha, Girish; Singh, Alka
    Abstract: The present study has analysed the trend in the total factor productivity (TFP) of major edible oilseeds in India during 1985-2010, and has decomposed the changes in TFP into its constituent components viz. technical change and efficiency change using Malmquist TFP approach. The study revealed that the productivity growth of groundnut, rapeseed/mustard and soybean has decelerated during period II (1996-2010) compared to period I (1985-1995). During the overall period TFP change was positive for groundnut and rapeseed/mustard, but negative for soybean. Period II has recorded increased TFP changes in two out of three states for groundnut and rapeseed/ mustard. For soybean, TFP change was positive in one out of three major state only. The entire change in TFP in case of all the crops was on account of technical change, with no contribution from changes in efficiency. The depressed productivity growth in many states despite positive TFP growth could be due to slowdown in input intensification. This situation warrants policy focus.
    Keywords: Agricultural and Food Policy, International Development,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212017&r=eff
  4. By: KONISHI Yoko; NISHIYAMA Yoshihiko
    Abstract: We propose a method to measure the efficiency of the retail industry. In the case of the manufacturing industry, we can define its efficiency by total factor productivity (TFP) based on the production function. Since retailers do not produce specific objects, we cannot observe their output with the exception of monetary observations such as sales or profit. TFP could be computed as in the manufacturing industry using such data, however, increased TFP does not necessarily indicate efficiency gain for retailers because it also includes the effects from the demand side. If demand increases, the TFP of retailers will increase. Therefore, we look at retailers' cost function rather than production function to study their efficiency. Assuming that the retail industry is competitive, we construct a cost model and identify the cost efficiency. In standard economic theory, duality holds for productivity and cost efficiency, though it is not clear in the present case. This paper deals with the retailers of goods with an inelastic supply function which include agricultural and marine products. We propose and apply a new empirical method to measure the retail industry efficiency of agricultural products using Japanese regional panel data of wholesale and market prices and traded quantity for a variety of vegetables from 2008 to 2014. The marginal cost efficiency was stable during this period.
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:eti:dpaper:16054&r=eff
  5. By: R, Sendhil; P, Ramasundaram; P, Anbukkani; Singh, Randhir; Sharma, Indu
    Abstract: Productivity, technology and efficiency drive agricultural growth through research. The total factor productivity (TFP) being increase in rate of growth of output over the rate of growth of inputs, its decline is a major concern and policy priority in the context of sustainable food production. This paper examines the wheat TFP in India during 2001-02 to 2010-11 across regions. The TFP determinants were discussed in terms of technological progress and technical efficiency. Inputs usage barring human labor and animal power, was intensive and registered positive growth. The mean TFP declined by 1 per cent. The slowdown is attributed to decline in the technological progress by 1.1 per cent despite a marginal increase in the efficiency by 0.1 per cent. The capital intensive new sciences need to be harnessed for breaking yield barriers. Higher allocation of funds to research and extension is needed for technological progress and efficiency gains.
    Keywords: Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212491&r=eff
  6. By: Paul J Dunne and Nicholas Masiyandima
    Abstract: The study uses firm level data from the World Bank Enterprise Surveys and employs alternative techniques to identify and estimate the within and intra-industry productivity impact of firm foreign ownership in SADC. Using firm labour productivity and employing sector fixed effects to identify the impact of foreign firm ownership on productivity, we find results that strongly suggest the existence of positive within firm and intra-industry FDI productivity spillovers for both small and large firms in the region. The productivity gains are, however, larger for small firms than for large firms suggesting greater productivity spillover advantages for the relatively technologically backward small firms. Similarly, there is heterogeneity with regard to productivity spillovers across individual countries, with the relatively technologically advanced countries such as South Africa and Mauritius experiencing larger intra-industry spillovers while less technologically endowed countries enjoy larger within firm gains.
    Keywords: Growth; development; firm; technology; spillovers; productivity; FDI; SADC
    JEL: O33
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:596&r=eff
  7. By: Audrey Laporte; Adrian Rohit Dass
    Abstract: In panel stochastic frontier models, the Fixed Effects (FE) approach produces biased technical efficiency scores when time-invariant variables are important in the production process, and the Random Effects (RE) approach imposes distributional assumptions about the inefficiency. Moreover, technical efficiency scores obtained from these models are biased when the sample contains a large number of firms near the efficient frontier. We propose the use of quantile regression (QR) with a Correlated Random Effects (CRE) specification as an alternative to these approaches. Using Monte Carlo simulations, we show that CRE QR can overcome the limitations of FE and RE stochastic frontier models.
    Keywords: technical efficiency, quantile regression, panel data, stochastic frontier analysis
    JEL: C23 D2
    Date: 2016–04
    URL: http://d.repec.org/n?u=RePEc:cch:wpaper:160005&r=eff
  8. By: Pedro Bento; Diego Restuccia
    Abstract: We construct a new dataset using census, survey, and registry data from hundreds of sources to document a clear positive relationship between development and average establishment size in manufacturing across 134 countries. We rationalize this relationship using a standard model of heterogeneous production units that features endogenous entry and productivity investment. The model connects small operational scales to the prevalence in poor countries of higher productivity elasticities of distortions. The model also rationalizes the finding in poor countries of low establishment-level productivity and low aggregate productivity investment. The model provides a tractable framework to decompose the importance of factor misallocation, life-cycle productivity investment, and entry-level productivity in accounting for aggregate productivity differences across countries. A calibrated version of the model implies that when the productivity elasticity of distortions increases from 0.09 in the U.S. to 0.5 in India, aggregate productivity falls by 53 percent and average establishment size by 86 percent. Establishment productivity at entry and factor misallocation roughly account equally for the entire reduction in aggregate productivity, whereas the reduction in life-cycle productivity growth is fully offset by its effect on establishment entry.
    Keywords: misallocation, establishment size, productivity, investment, idiosyncratic distortions.
    JEL: O1 O4
    Date: 2016–04–06
    URL: http://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-557&r=eff
  9. By: Mensah, Amos; Brummer, Bernhard
    Abstract: This study examined the response of the Ghanaian pineapple production sector to the 2004/05 crisis where a swift shift of international market demand from the traditional smooth cayenne and sugar loaf variety to the MD2 variety nearly destroyed the entire fruit industry. We quantify the proportion of our sample farmers cultivating the MD2 variety and analysed the factors influencing adoption of the MD2 variety using a logistic regression model. We further employed a metafrontier analytical technique to assess the current productivity level of organic and conventional pineapple producers in three regions where commercial production for export is most concentrated. The high average performance scores (i.e. 97% mean TE and 95% mean MTR) suggests that there is not much scope for productivity gain given the current state of technology available to the industry. This implies: to substantially increase output levels in the industry to meet rapidly expanding domestic and international market demands, Government policies should aim at agricultural research development framework which not only encourages but expedite transfer of innovative production techniques to aid push output levels beyond what is currently achievable in the industry.
    Keywords: Technical Efficiency, Technology gaps, Ghanaian Fruit industry, MD2 variety, Crop Production/Industries, Food Consumption/Nutrition/Food Safety,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212454&r=eff
  10. By: Evgenii Monastyrenko
    Abstract: European electricity industry has recently come through liberalization. Surge of intakes with high share of cross-border deals was market players’ response. Measuring of post-merger performance alterations is a central question of M&A literature. EU energy sector is responsible for significant part of global greenhouse gas emissions. Its efficiency should be regarded with respect to ecological dimension. This study addresses combined economic and environmental performance of 15 biggest European energy producers in 2005-2013. I exploit Data envelopment analysis (DEA) with CO2 as an undesirable output. Panel fractional regression model with financial controls is used to isolate effects of completed mergers. Results suggest that in short term firms profit from selling their subsidiaries to foreign counter-parties. This effect doesn’t sustain over time. Same-type domestic deals are detrimental in short run, but performance-enhancing in long term. Domestic and cross-border acquisitions immediately damage performance. Later ones stimulate efficiency in the long run.
    Keywords: Mergers and acquisitions, Firm performance, Data envelopment analysis, Fractional regression model, Electric power industry, Carbon dioxide emissions
    JEL: F21 G34 L25 L94 D24
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2016:i:169&r=eff
  11. By: Seok, Jun Ho; Saghaian, Sayed H.
    Abstract: The revolution of information and communication technologies has made service offshoring possible and economically feasible. Only a few studies are available on the impact of service offshoring on productivity in the agri-food sector even if service offshoring in agri-food industries has been increasing rapidly in recent years. This paper uses the world input-output data and the Arellano and Bond (1991) GMM estimator to analyze the impact of service offshoring on the productivity of agri-food industries. The results show service offshoring has had a positive impact on the food industry’s productivity due to the characteristics of food industry.
    Keywords: Service-offshoring, Food Industry, Productivity, Input-Output Table, GMM, International Relations/Trade,
    Date: 2016–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:229704&r=eff
  12. By: Péter Bauer (Magyar Nemzeti Bank (Central Bank of Hungary)); Marianna Endrész (Magyar Nemzeti Bank (Central Bank of Hungary))
    Abstract: The ultimate aim of this paper is to generate micro-level risk measures, which can provide a useful input for further research. To this end, this paper estimates bankruptcy probabilities for Hungarian firms using probit estimation. The estimated models show reasonable performance in distinguishing surviving and failing firms. We combine macro and micro information, as the addition of macro variables is needed to capture the aggregate dynamics and level of risk, especially during the crisis period. Controlling for the non-linear impact of firm characteristics and allowing heterogeneity by firm size improves the model’s performance significantly. The distributional characteristics of the micro-level risk indicators provide some interesting insights regarding the development of risk dispersion and the risktaking of the banking sector.
    Keywords: bankruptcy risk modelling, probit, micro data
    JEL: C23 G33
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:mnb:opaper:2016/122&r=eff
  13. By: Mburu, Samuel; Ackello-Ogutu, Chris; Mulwa, Richard
    Abstract: The primary objective of this study is to examine the effect of farm size on economic efficiency among wheat producers and to suggest ways to improve wheat production in the country. Specifically, the study attempts to estimate the levels of technical, allocative and economic efficiencies among the sampled 130 large and small scale wheat producers in Nakuru District. The social-economic factors that influence economic efficiency in wheat production have also been determined. Results indicate that the mean technical, allocative and economic efficiency indices of small-scale wheat farmers are 85%, 96% and 84%, respectively. The corresponding figures for the large-scale farmers are 91%, 94% and 88%, respectively. The number of years of school a farmer has had in formal education, distance to extension advice and the size of the farm have strong influence on the efficiency levels. The relatively high levels of technical efficiency among the small scale farmers defy the notion that wheat can only be efficiently produced by the large scale farmers.
    Keywords: allocative efficiency, economic efficiency, Kenya, stochastic frontier production function, technical efficiency, wheat production, Agricultural Finance, Crop Production/Industries, Financial Economics,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212452&r=eff
  14. By: Reynolds, Travis W.; Anderson, C. Leigh; Slakie, Elysia; Gugerty, Mary Kay
    Abstract: Common estimates of agricultural productivity rely upon crude measures of crop yield, typically defined as the weight of a crop harvested divided by the area harvested. But this common yield measure poorly reflects performance among farm systems combining multiple crops in one area (e.g., intercropping), and also ignores the possibility that farmers might lose crop area between planting and harvest (e.g., partial crop failure). Drawing on detailed plot-level data from Tanzania’s National Panel Survey, this paper contrasts measures of smallholder productivity using production per hectare harvested and production per hectare planted. Yield by area planted differs significantly from yield by area harvested, particularly for smaller farms and female-headed households. OLS regression further reveals different demographic and management-related drivers of variability in yield gains – and thus different implications for policy and development interventions – depending on the yield measurement used. Findings suggest a need to better specify “yield” to more effectively guide agricultural development efforts.
    Keywords: Crop Production/Industries, Farm Management,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212485&r=eff
  15. By: Henningsen, Arne; Mpeta, Daniel F.; Adem, Anwar S.; Kuzilwa, Joseph A.; Czekaj, Tomasz G.
    Abstract: Due to changes in the global agricultural system and support from various organizations, contract farming has recently been significantly expanded in many developing countries. A considerable body of literature analyses the impact of contract farming on the welfare of smallholders, whereas its impact on efficiency and productivity is mostly overlooked. This study addresses this salient gap by combining the approaches of Bravo-Ureta, Greene, and Solís (Empirical Economics, 2012) and Rao, Brümmer, and Qaim (AJAE, 2012). We first estimate separate production frontiers for contract farmers and non-contract farmers that account for potential selection biases, and second, we create a meta-frontier. Using cross-sectional data from sunflower farmers in Tanzania, we find a significant selection bias. Contract farming significantly increases the yield potential but lowers the average group technical efficiency. As the first effect is slightly larger than the second, we find a small positive effect of contract farming on productivity.
    Keywords: Agricultural Finance, Farm Management,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212478&r=eff
  16. By: Riera, Olivia; Swinnen, Jo
    Abstract: The indirect effects of biofuels are mostly considered negative. In this paper, we argue that there may be a positive indirect effect of biofuels on food security and poverty. Our analysis shows that the introduction of castor production for biofuel in a poor country as Ethiopia can significantly improve food productivity of rural households who produce raw material for biofuel production. This spillover seems particularly linked to enhanced access to inputs and technical assistance which were provided as part of biofuel feedstock production contracts. Our results thus help nuancing the view that biofuels necessarily harm smallholders’ food security.
    Keywords: Environmental Economics and Policy,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212291&r=eff
  17. By: Deininger, Klaus; Jin, Songqing; Liu, Yanyan; Singh, Sudhir
    Abstract: In this paper, we use a three-round farm-level panel from rural India to explore the existence and evolution of the inverse relationship between farm size and productivity that has been found in a large empirical literature. While present throughout, the inverse relationship weakened significantly over time; the estimated elasticity of productivity with respect to farm size increased from 0.73 to 0.95 from 1982 to 2007. Key drivers are better functioning labor markets and a narrowing of efficiency differences between own and hired labor, possibly due to greater use of machinery. Structural transformation and a transition towards larger farms thus did not hurt productivity and economic efficiency.
    Keywords: Farm Management, International Development, Marketing,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212720&r=eff
  18. By: Sakurai, Takeshi
    Abstract: Irrigated rice farming in the Senegal River Valley is known to be highly productive, as indicated by the average yield of nearly 5 tons per hectare, and the extensive adoption of modern seed-fertilizer technology. This study seeks to understand why rice farming is so productive in this region; analyzing this situation from the viewpoint of the management efficiency of large versus small scale irrigation schemes. Contrary to popular belief, the study found that farmers in large-scale irrigation schemes achieve significantly higher yields and profits than those in small-scale irrigation schemes
    Keywords: Large-scale irrigation schemes, small-scale irrigation schemes, productivity, rice farming, senegal River Valley, Environmental Economics and Policy,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212035&r=eff
  19. By: Anne Marie Knott; Carl Vieregger
    Abstract: Since Schumpeter, there has been a long-standing debate regarding the optimal firm size for innovation. Empirical results have settled into a puzzle: R&D spending increasing with scale while R&D productivity decreases with scale. Thus large firms appear irrational. We propose the puzzle stems from the fact that product and patent counts undercount large firm innovation. To test that proposition we use recently available NSF BRDIS survey data of firms R&D practices as well as a broader measure of R&D productivity. Using the broader measure, we find that both R&D spending and R&D productivity increase with scale—thus resolving the puzzle. We further find that while large firms and small firms differ in the types of R&D they conduct, there is no type whose returns decrease in scale—there are merely types for which the small firm penalty is less severe.
    Date: 2016–03
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:16-20&r=eff
  20. 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, Agricultural and Food Policy, F14, F15, F61, L66, Q17,
    Date: 2015–06
    URL: http://d.repec.org/n?u=RePEc:ags:aiea15:207844&r=eff
  21. By: Griffin, Terry; Shockley, Jordan
    Abstract: With farmland prices near record highs and machinery management becoming critical to whole farm profitability, understanding the interactions between the two becomes important. Machinery costs are one of the largest factors influencing the variation in net farm income among farmers. For a given machinery complement, the field efficiency is a leading factor in the value of the machinery to the farm. Field efficiency will vary based on field geometry such as shape and size. Farmers with a large proportion of small irregularly shaped fields would have lower realized field efficiencies compared to farmers with more acres in rectangular shaped fields. The ability to capture maximum machinery efficiency, hence lower machinery costs, should impact the willingness to pay for farmland. We evaluate the relationship between field shape and size and the associated willingness-to-pay for that land given a representative equipment set. Building upon the baseline scenarios for a range of field characteristics, we evaluate the relative benefit of adding precision technologies such as automated guidance and automatic section control that potentially increase field efficiency. Along with input savings, we evaluate how much farmers would be willing-to-pay for farmland given an increase in machinery efficiency in the field due to these technologies.
    Keywords: precision agriculture, automated guidance, automatic section control, machinery, field efficiency, farmland values, Land Economics/Use, Q10, Q15,
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:230118&r=eff
  22. By: Silva, Felipe; Fulginiti, Lilyan E.; Perrin, Richard K.
    Abstract: The Amazon Forest is the largest tropical forest in the world stretching over nine states in northern Brazil. Land use in the Amazon Forest has been under discussion due to its direct and indirect effects on emission and sequestration of greenhouse gases (GHGs) such as CO2, N2O and CH4. Our interest here is to investigate whether technological change in agriculture has resulted in higher or lower costs of emissions abatement. We examined a panel of nine states from this region during the period 1990-2009, a period of rapid agricultural expansion as well as a series of new environmental regulations. The rate of technical change and its biases were estimated using stochastic and non-stochastic approaches. Preliminary results indicate a technological progress for Brazilian’s Amazon Forest states, which suggests a simultaneously expansion on GDP and contracted on CO2e emissions due to technical change. This technical change has been biased toward GDP and against emissions, indicating an increase in GDP foregone to achieve a given reduction in emissions.
    Keywords: Amazon forest, Agriculture, Greenhouse gasses and Technical change., Environmental Economics and Policy, Production Economics, Productivity Analysis, Q54, Q55, O13, D24,
    Date: 2016–01–22
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:230092&r=eff
  23. By: Wedimu, Mengistu A.; Henningsen, Arne; Czekaj, Tomasz G.
    Abstract: We investigate the rather unique contractual arrangement between one of the largest sugar factories in Ethiopia and its adjacent outgrower associations. The only significant difference between the sugarcane production on the factory-operated plantation and on the outgrower-operated plots is the remuneration system and thus, the incentives to the workers. We compare the productivity of these two production models based on a new cross-sectional plot-level data set. As sugarcane production depends on various exogenous factors that are measured as categorical variables (e.g. soil type, cane variety, etc.), we estimate the production function by a nonparametric kernel regression method that takes into account both continuous and categorical explanatory variables without assuming a functional form. Our results show that outgrower-operated plots have−ceteris paribus−a significantly higher productivity than factory-operated plots, which can be explained by outgrowers having stronger incentives to put more effort in their work than the employees of the sugar factory.
    Keywords: Crop Production/Industries, International Development,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:211900&r=eff
  24. By: Ogada, Maurice; Nyangena, Wilfred
    Abstract: This study investigates the impact of package adoption of inorganic fertilizers and improved maize varieties on yield among smallholder households in Kenya. We used a blend of the quasi-experimental difference-in-differences approach and propensity score matching to control for both time-variant and time-invariant unobservable household heterogeneity. Our findings show that inorganic fertilizers and improved maize varieties significantly improve yields when adopted as a package rather than as individual elements. The impact is greater at the lower end of the yield distribution than at the upper end, and when technical efficiency of the farmers improves. A positive effect of partial adoption is experienced only in the lower quantile of the yield distribution. The policy implication is that complementary agricultural technologies should be promoted as a package, and should target households and areas which are already experiencing low yields.
    Keywords: Technology Adoption, Yield, Difference-in-Differences, Kenya, Farm Management, Research and Development/Tech Change/Emerging Technologies, Q12, Q16, O33, O55,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212590&r=eff
  25. By: Regmi, Madhav; Oladipo, Obembe; Jason, Bergtold
    Abstract: The purpose of this paper is to compare and explain the production efficiencies across rice varieties grown in Bangladesh. Specifically, this study compares the efficiencies among three main rice varieties (Local Aman, HYV Aman and HYV Boro), between two monsoon season varieties (Local Aman and HYV Aman), and between high yielding varieties of monsoon (HYV Aman ) and dry season (HYV Boro) across the seven administrative divisions of Bangladesh. Result indicates that HYV Boro is more efficient (technical, cost and allocative) among all three main rice varieties in Bangladesh. HYV Aman is more efficient than Local Aman in all seven divisions and HYV Boro is more efficient than HYV Aman across all divisions except Sylhet. Several determinants of these efficiency scores were identified using the Tobit regression. The coefficient estimates suggest that off-farm activities of households, loan status, farm subsidies, extension services, household head characteristics (age, literacy, gender and occupation), and dependency ratio of households are the key explanatory variables of these efficiency scores.
    Keywords: Rice, Technical Efficiency, Cost Efficiency, Allocative Efficiency, DEA, Tobit, Bangladesh, Agricultural and Food Policy, International Development, Production Economics, Productivity Analysis, C34, Q12, Q16, Q18,
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:229990&r=eff
  26. By: Sidibe, Yoro; Williams, Timothy O.
    Abstract: Recent large-scale investments in agricultural land that are coupled with irrigation present opportunities for increased food production in sub-Saharan Africa. However, to achieve this objective two management issues must be addressed: efficient water use in the face of a looming water scarcity and equity in the sharing of the resource between large-scale investors and smallholder farmers. Focusing on the Office du Niger, one of the largest irrigable areas in Africa this paper compares the performance of three alternative water valuation methods: the currently used flat rate area-based pricing, uniform pricing and increasing block tariffs. Results show the limitations of the current pricing system in economic efficiency and equity terms and in terms of generating sufficient revenue to meet water supply costs. The paper shows that volumetric water pricing avoids these shortcomings and allows the water decision maker to weigh the efficiency-equity trade-offs in irrigation water management.
    Keywords: Large-scale agricultural land investment, water pricing, bioeconomic simulation, tradeoff analysis, poverty, equity, efficiency, Environmental Economics and Policy, Land Economics/Use, Q12, Q18, Q310, Q570, Q250, Q240,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212235&r=eff
  27. By: Yi, Fujin; Jiang, Fei; Zhong, Funing; Ding, Aijun; Zhou, Xun
    Abstract: The impact of surface ozone pollution on the yield of winter wheat is empirically estimated by considering socio-economic and climatic determinants. This research is the first to use an economic framework to estimate the ozone impact, and a unique county-level panel is employed to examine the impact of the increase of surface ozone concentration on the productivity of winter wheat. In general, the increment of surface ozone concentration during the ozone-sensitive period of winter wheat is found harmful to its yield, and the damage to China’s grain supply and economic values are non-negligible. This study also confirms that other stress conditions, such as drought and air particles, can potentially mitigate the adverse effect of surface ozone exposure on the yield of winter wheat.
    Keywords: Crop Production/Industries, Environmental Economics and Policy, International Development,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:211866&r=eff
  28. By: Kostandini, Genti; Rhoads, James; Johnson, Rob; Carroll, Eric; Schwartzbord, Jeremy
    Keywords: International Development,
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:230107&r=eff
  29. By: Kirchweger, Stefan; Eder, Michael; Kantelhardt, Jochen
    Abstract: Despite the ongoing trend of higher intensities in dairy farming, some farmers select rather low-input systems. We identify such system in an agricultural bookkeeping dataset and assess economic effects of this system selection under volatile prices situations using cluster analysis and direct covariates matching. We find one lowinput 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. After applying the matching methodology, the results indicate that choosing a low-input system does not affect farm income but reduces the work load and borrowed capital even under volatile markets.
    Keywords: Dairy Farming, Farm Competitiveness, Low-input farming, Cluster Analysis, Matching Method, Agricultural and Food Policy, Farm Management, Livestock Production/Industries, Q12, Q16,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212005&r=eff
  30. By: Yeboah, Osei; Thomas, Terrence W.; Gunden, Cihat; Ogbole, Enekole J.
    Keywords: Environmental Economics and Policy,
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:229790&r=eff
  31. By: Khanal, Aditya; Koirala, Krishna; Regmi, Madhav
    Keywords: Efficiency, DEA, Stochastic Frontier, financial factors, Agricultural Finance, International Development, Production Economics, Productivity Analysis,
    Date: 2016–01–22
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:230087&r=eff
  32. By: Iacovone,Leonardo; Pereira Lopez,Mariana De La Paz; Schiffbauer,Marc Tobias
    Abstract: This paper presents a set of stylized facts on the relation between information and communications technology (ICT) use, firm performance, and competition. Taking advantage of a novel firm-level data set on information and communications technology for Mexico, the study finds that firms facing higher competition appear to have more incentives to increase their use of information and communications technology. Accordingly, although there is indeed a positive relation between information and communications technology use and firm performance, this effect is greater for firms that face higher competition pressures, which is consistent with the theoretical predictions of the trade-induced technical change hypothesis.
    Keywords: E-Business,ICT Policy and Strategies,Education for the Knowledge Economy,Knowledge for Development,Information and Communication Technologies
    Date: 2016–04–11
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:7629&r=eff
  33. By: Sene, Ligane Massamba; Badiane, Ousmane
    Abstract: This paper analyses the relationship between health expenditures and productivity in Senegal by using a dynamic recursive Computable General Equilibrium (CGE) model that has been run from 2011 to 2020. This model links the growth rate of agricultural productivity to household investment in health goods taking into account catastrophic health payments considered as barriers to achieve maximal productivity gains. In fact, despite being a potential catalyst for productivity, out-of-pocket health expenditures can be a burden after a critical threshold has been crossed, and might potentially decrease household resources and place constraints on the productivity generating process. Results show a positive impact on poverty reduction when the Government reduces the burden on households by financing catastrophic payment overshoots. Lower health costs also appear to improve households’ well-being, especially in the case of agricultural households. These results suggest the need for policies which will reduce the health system’s reliance on out-of-pocket payments and demonstrate that health programs should reach the most vulnerable households. The effectiveness of poverty-oriented interventions can be increased by targeting households incurring catastrophic health expenditures.
    Keywords: agricultural productivity, health, poverty, out-of-pocket health expenditures, Senegal, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Q12, I130, I320,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212261&r=eff
  34. By: Miguel Martín-Retortillo (Universitat Pompeu Fabra, Spain); Vicente Pinilla (Universidad de Zaragoza and Instituto Agroalimentario de Aragón –IA2, Spain); Jackeline Velazco (Pontificia Universidad Católica de Perú, Peru); Henry Willebald (Universidad de la República, Uruguay)
    Abstract: Since 1950 profound changes, such as new technological innovations or changes in agricultural and trade policies took place in the Latin American agriculture. This article aims to analyse the dynamics of the growth of Latin American agricultural production between 1950 and 2008. It explores whether the increases in agricultural production have been due to increases in the use of production factors, or whether production increases have been due to efficiency gains. Our findings suggest that efficiency gains made a rather modest contribution to the important increase in production; this increase was principally the result of the use of capital. This was the most important productive factor in explaining increases in output, together with more moderate increases in the use of land and labour.
    Keywords: Latin American economic history, Latin American agriculture, Agricultural productivity, Agricultural growth
    JEL: N56 O13 Q11
    Date: 2016–04
    URL: http://d.repec.org/n?u=RePEc:ahe:dtaehe:1610&r=eff
  35. By: Michal Jakubczyk; Beata Kon
    Abstract: Sickness-related absenteeism hinders firms' productivity and reduces output, an effect referred to as indirect cost (IC) and often included when assessing the burden of an illness or cost-effectiveness of a treatment. The companies may, however, foresee this risk and modify hiring or contracting policies. We present a model of a firm allowing to estimate IC while accounting for such adjustments. We show that the risk of illness does not change the general shape and properties of the (expected) marginal productivity function. We apply our model to several illustrative examples and show that firm's adjustments impact IC in an ambiguous way, depending on detailed company/market characteristics. Sometimes the company reduces the employment (further increasing IC), yet sometimes the opposite (even generating indirect gains). Contrary to previous literature findings, teamwork and shortfall penalties may reduce IC in some settings. Our analysis highlights that IC should be split into the result of companies preparing for and actually experiencing sick leaves, at least when friction cost approach is taken. To what extent the former counts as IC may depend on the (labour and good) market structure and the interpretation of equilibrium values. These considerations are usually not addressed in applied IC assessment, which may bias the results.
    Keywords: Absenteeism, Productivity, Indirect cost, Teamwork, Output Shortfall, Friction Cost Method
    JEL: D21 J24 J21 L23
    Date: 2016–04
    URL: http://d.repec.org/n?u=RePEc:sgh:kaewps:2016008&r=eff
  36. By: Cechur, Lukas; Hockmann, Heinrich; Levkovych, Inna
    Abstract: The paper identifies the degree of market imperfections in the input processing market and provides a comparative analysis among the different EU countries and different industries. For detection of the abuse of oligopsonistic/monopsonistic behavior a mark down model using stochastic frontier methodology was derived. The results show that the input food processing market is characterized by some degree of non-competitive behavior in all analysed sectors - slaughtering, fruits and vegetables, dairy and milling. However, the degree of market imperfections differs among the sectors as well as within individual sectors. In particular, the EU slaughtering common market is characterised by considerably greater market imperfections as compared to the dairy and milling sectors. Moreover, significant differences among EU member countries in individual countries were revealed by the estimate in all analysed sectors. In particularly, some companies are characterized by significant oligopsony market power.
    Keywords: oligopsony, market power, food processing industry, SFA, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, D22, D43, L13,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212043&r=eff
  37. By: Asci, Serhat; Yamazaki, Fumiko; Paggi, Mechel
    Abstract: Pesticide use related to agriculture and non-agricultural uses has increased six-fold during the last three decades. California has been collecting pesticide use since 1990, and that is recognized as the most comprehensive pesticide reporting program in the world. The program includes the information for 1003 active ingredients and 309 end use commodities. This study aims to develop a relationship between end uses and chemicals to determine the possible impact of end-uses for pesticide demand. In this study, we develop a comprehensive relationship between the pesticide end-uses and active ingredients and analyze pesticide demand using the historical data available from the PUR dataset and agricultural production data using stochastic simulation methods.
    Keywords: Pesticide use, PUR dataset, stochastic simulation, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Production Economics,
    Date: 2016–02
    URL: http://d.repec.org/n?u=RePEc:ags:saea16:230126&r=eff
  38. By: Osman, Rehab; Ferrari, Emanuele; McDonald, Scott
    Abstract: This study provides quantitative assessments for the impacts of efficiency enhancement for different types of irrigation water under water scarcity conditions. It employs a single country CGE (STAGE) model calibrated to an extended version of a recently constructed SAM for Egypt 2008/09. The SAM segments the agricultural accounts by season and by irrigation scheme; Nile water- and groundwater-dependent as well as rain-fed agricultural activities. The simulations show that Egypt should manage potential reductions in the supply for Nile water with more efficient irrigation practice that secures higher productivity for Nile water, groundwater and irrigated land. The results suggests more ambitious plan to boost irrigation efficiency for summer rice in order to overweight any potential shrinkages in its output and exports. Furthermore, even doubling all non-conventional water resources is not sufficient to compensate the potential adverse impacts of Nile water losses. This highlights the importance of irrigation efficiency for the Egyptian economy
    Keywords: Water Availability, Agriculture Productivity, Nile Basin, Computable General Equilibrium (CGE) Models, Crop Production/Industries, Environmental Economics and Policy, Q25, D58, C68.,
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:ags:iaae15:212601&r=eff

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