nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2017‒07‒09
eight papers chosen by

  1. Research, knowledge transfer and innovation: the effect of Italian universities’ efficiency on the local economic development 2006-2012 By Tommaso Agasisti; Cristian Barra; Roberto Zotti
  2. Exact and superlative measurement of the Luenberger- Hicks-Moorsteen productivity indicator By Ang, Frederic; Kerstens, Peter Jan
  3. International protection of intellectual property rights: a stochastic frontier index By José Fernández Donoso; Fernando Hernández
  4. Microeconomic mechanisms behind export spillovers from FDI: Evidence from Bulgaria By Ciani, Andrea; Imbruno, Michele
  5. The Locus of Knowledge Externalities and the Cost of Knowledge. By Antonelli, Cristiano; Colombelli, Alessandra
  6. Airports and economic performance in China By Stephen Gibbons; Wenjie Wu
  7. Account receivable management across Industrial sectors in Ghana; analyzing the economic effectiveness and efficiency By Tweneboah Senzu, Emmanuel; Ndebugri, Haruna
  8. M-PRESS-CreditRisk: A holistic micro- and macroprudential approach to capital requirements By Tente, Natalia; von Westernhagen, Natalja; Slopek, Ulf

  1. By: Tommaso Agasisti (Politecnico di Milano School of Management); Cristian Barra (Università di Salerno); Roberto Zotti (Università di Salerno)
    Abstract: In this paper, we test whether there is a link between the performance of universities and the local economic development of the territory where they operate. The performance of academic institutions is measured through an efficiency concept, estimated by means of an innovative Stochastic Frontier Analysis (SFA), and considering indicators of teaching, research and ‘third mission’ as outputs. A system generalized method-of-moments (Sys- GMM) dynamic panel estimator, instrumented with time lags and differences is estimated over the period from 2006 to 2012 to solve the potential endogeneity of the explanatory variables. Our findings reveal that the presence of efficient universities fosters local economic development, and that knowledge spillovers occur between areas through the geographical proximity to the efficient universities.
    Keywords: Higher education; knowledge spillovers; local economic development; efficiency of universities
    JEL: I21 E01
  2. By: Ang, Frederic (Department of Economics, Swedish University of Agricultural Sciences); Kerstens, Peter Jan (Center for Economic Studies)
    Abstract: This paper shows that the Bennet-Bowley profit indicator is an exact and superlative approximation of the additively complete Luenberger Hicks Moorsteen productivity indicator when the input and output directional distance functions can be represented up to the second order by a quadratic functional form. It also establishes the conditions under which the exact and superlative measures of the Luenberger productivity indicator and Luenberger- Hicks-Moorsteen productivity indicator coincide.
    Keywords: Bennet-Bowley; diff erence based indicator; total factor productivity; exact and superlative approximation
    JEL: C43 D21 D24
    Date: 2017–07–02
  3. By: José Fernández Donoso; Fernando Hernández (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This paper combines two bodies of work: the literature regarding the measurement of the strength of intellectual property rights (IPR) protection systems and stochastic production frontier efficiency analysis. We propose measuring the efficiency of IPR protection systems by comparing optimal production frontier of innovation to real results, through a measure based on the existing Stochastic Frontier Analysis of technical efficiency. Our results indicate that, despite imperfect datasets, this approach provides interesting results comparable to measures in Park (2008) and other IPR strength indicators. Some issues to be further explored longer datasets and richer information, and innovation measurements. This paper also adds some evidence to the idea of an inverted U relationship between innovation output and IPR protection system strength.
    Keywords: Intellectual property, Innovation, Global Innovation Index, Patent applications, Economic development, Stochastic frontier analysis, Fixed effects
    Date: 2017–05
  4. By: Ciani, Andrea; Imbruno, Michele
    Abstract: This paper studies how the presence of multinational enterprises affects the export performance of Bulgarian manufacturing firms - Export spillovers from FDI. Using export data at the firm/product/destination level for the period 2004-2006, we find positive forward spillover on export value and quantity, related to quality upgrading. Conversely, we find negative (or insignificant) backward and horizontal spillover on export flows, related to quality downgrading. When aggregating data at the firm level and considering that a firm can operate in several sectors, we show that the presence of foreign input suppliers allows domestic firms to export additional varieties of lower quality and upgrade the average quality of existing varieties, whereas the presence of foreign customers generates the opposite effect.
    Keywords: Export spillover,FDI,Multi-product firms,Unit value,Quality
    JEL: F14 F23 F61
    Date: 2017
  5. By: Antonelli, Cristiano; Colombelli, Alessandra (University of Turin)
    Abstract: This paper provides an extended CDM approach to analyse jointly the simultaneous effects of knowledge spillovers in the knowledge generation function and in the technology production function. It introduces the distinction between imitation and knowledge externalities and articulates the hypothesis that spillovers yield their effects via three well distinct mechanisms: i) knowledge externalities that exert positive and direct effects on the knowledge production function, and ii) indirect effects on the technology production function via their effects on the cost of knowledge; iii) imitation externalities exert direct and positive effects on productivity in the technology production function. We test our hypotheses on a large panel of Italian companies distributed in the NUTS2 regions for the period 2005 – 2009. The econometric analysis consists in a model comprising a system of equations that test the simultaneous role of spillovers in the knowledge generation function and the technology production function with the inclusion of endogenous knowledge costs. The results confirm that the access to external knowledge – as an input in the knowledge generation function – plays a key role in increasing the knowledge output and – as an input in the technology production function – has positive indirect and direct effects on the productivity of firms.
    Date: 2017–06
  6. By: Stephen Gibbons; Wenjie Wu
    Abstract: China's airport construction policy has been successful in boosting manufacturing output, according to research by Stephen Gibbons and Wenjie Wu. Their study also finds that productivity impacts have been greater for private firms in areas with relatively high population and low educational achievement. The researchers address the question of whether opening new airports and expanding airport capacity stimulate economic growth, particularly in developing countries. The evidence they find on the positive impact of airport infrastructure in China suggests that reduced travel times and improved domestic market access help to boost industrial productivity.
    Keywords: airports, infrastructure, productivity, China
    JEL: H54 O21 P25 R41
    Date: 2017–07
  7. By: Tweneboah Senzu, Emmanuel; Ndebugri, Haruna
    Abstract: Since account receivable constitute a significant portion of current assets in manufacturing and wholesale firms, the study aimed at investigating trade credit and principles adopted by firms in the management of account receivables across the industrial sectors in Ghana. This enabled the study to examined strengths and weaknesses in account receivable strategies by firms in Ghana and recommend economically effective and efficient practice
    Keywords: Account receivable managements, account receivable policy, Trade credit, Finance
    JEL: G23 G31 G39
    Date: 2017–07–03
  8. By: Tente, Natalia; von Westernhagen, Natalja; Slopek, Ulf
    Abstract: M-PRESS-CreditRisk is a new top-down macro stress testing framework that can help supervisors gauge banks' capital adequacy related to credit risk. For the first time, it combines calibration of microprudential capital requirements and macroprudential buffers in a unified, coherent framework. Its core element is an advanced credit portfolio model - SystemicCreditRisk - built upon a rich, non-linear dependence structure for interconnected bank portfolios. Incorporating numerous sector/country-specific systematic factors, the model focuses on credit default concentration risk as a major source of large losses that may have systemic impact. A test run using a sample of 12 systemically important German banks provides measures for systemic credit risk and the banks' contributions to it in both baseline and stress scenarios. Capital requirements calibrated to the results combine elements of Pillar 1 and Pillar 2, whereas macroprudential buffers can internalize the system's tail risk. The maximum model-based combined requirements range between 6.3% and 27.2% of credit RWA depending on the bank. A comparison with the reported capital figures suggests that there appears to be enough capital in the banking system, but its distribution might be suboptimal from a systemic point of view as the capital level of a number of banks might need improvement.
    Keywords: Systemic Credit Risk,Tail Risk,Stress Testing,Microprudential Capital Requirements,Systemic Risk Buffer,O-SII Buffer,Hierarchical Archimedean Copula
    JEL: C15 C23 C63 G21 G28
    Date: 2017

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