nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2017‒09‒24
thirteen papers chosen by

  1. Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition By K Hervé Dakpo; Yann Desjeux; Philippe Jeanneaux; Laure Latruffe
  2. Foreign direct investment inflows and labor productivity in Pakistan: A sector-wise panel cointegration analysis By Serfraz, Ayesha
  3. Trade Integration and the Polarisation of Eco-Labelling Strategies By Vera Danilina
  4. Adjustment Costs and Factor Demand: New Evidence From Firms’ Real Estate By A. Bergeaud; S.Ray
  5. The measurement of labour content: a general approach By Naoki Yoshihara; Roberto Veneziani
  6. Creativity and the City: Testing the Attenuation of Agglomeration Economies fo r the Creative Industries in Barcelona By Coll Martínez, Eva
  7. Comparative analysis for Japanese Private Sector IT investment and Productivity The roles of IT investments for corporate growth and profit By Sugihara, Yoshitaka
  8. Economic Freedom and Government Efficiency: Recent Evidence from China By Shaomeng Jia; Yang Zhou
  9. Pointing out the gap between academic research and supporting software tools in the domain of the performance measurement management of engineering projects By Li Zheng; Claude Baron; Philippe Esteban; Rui Xue; Qiang Zhang
  10. Market Power, Production (Mis)Allocation and OPEC By John Asker; Allan Collard-Wexler; Jan De Loecker
  11. Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach By Khalid Maman Waziri
  12. Panel estimation of sectoral substitution elasticities for CES production functions By Antoszewski, Michal
  13. Performance of Russian SMEs during the economic crisis: The role of strategic entrepreneurship By Shirokova, G.; Ivvonen, L.

  1. By: K Hervé Dakpo; Yann Desjeux; Philippe Jeanneaux; Laure Latruffe
    Abstract: The objective of the article is to assess productivity change in French agriculture during 2002-2014, namely total factor productivity (TFP) change and its components technological change and technical efficiency change. For this, we use the economically-ideal Färe-Primont index which verifies the multiplicatively completeness property and is also transitive, allowing for multi-temporal/lateral comparisons. To compare the technology gap change between the six types of farming considered, we extend the Färe-Primont to the meta-frontier framework. Results indicate that during 2002-2014, all farms experienced a TFP progress. Pig and/or poultry farms had the lowest TFP increase, while beef farms had the highest (19.1%). The latter farms had the strongest increase in technical efficiency, while technological progress was the highest for mixed farms. The meta-frontier analysis shows that field crop farms’ technology is the most productive of all types of farming.
    Keywords: total factor productivity (TFP), Färe-Primont index, meta-frontier, French farms
    JEL: D24 O47 Q10
    Date: 2017
  2. By: Serfraz, Ayesha
    Abstract: Developing economies tremendously benefit from FDI inflows since it leads to their economic growth. This study empirically analyzes the effects of sector-wise FDI inflows on respective sector-wise labor productivity for a panel of seven major sectors of Pakistan's economy covering time period of 1997-2016. In empirical analysis sector-wise FDI inflows has been used as an independent variable while sector-wise labor productivity is a dependent variable. Initial tests conclude that LSDV fixed effects model is the most appropriate test for the data being used for empirical analysis. Further tests confirm the existence of a long run Cointegration between these two variables. Wald test shows that a uni-directional short-run causality exists, running from sector-wise labor productivity to sector-wise FDI inflows. Pair-wise Granger-Causality test further shows that the effects of FDI inflows are not limited to one sector, rather there is an evidence of spillover effect from one sector to an-other. All empirical tests conclude that sector-wise FDI inflows positively affect sector-wise labor productivity in case of Pakistan.
    Keywords: Sector-wise FDI Inflows,Sectors-wise labor Productivity,Panel Cointegration,Pakistan
    Date: 2017
  3. By: Vera Danilina (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille)
    Abstract: Growing ecological concerns give rise to salient discussions of green policy impact within different social sciences domains. This research studies the outcomes of voluntary environmental labelling in autarky and upon trade integration in the presence of two types of heterogeneity, across countries and across producers. It investigates the impact of the two main types of eco-labels - multiple-criteria-based programmes (ISO Type I) and self-declared environmental claims (ISO Type II), both of which are simultaneously introduced due to the environmental concerns of consumers. The model illustrates the polarisation of eco-labels when the least productive firms tend to avoid green strategies, lower-middle productive and the most efficient firms are incentivized to greenwash, and the upper-middle productive firms choose trustful programmes. It also shows that voluntary green restrictions lead to substantial productivity effects in the market upon opening to international trade, conditionally, depending on the type of the labelling and the relative degree of environmental awareness across trading countries. The model predicts average market productivity losses and within segments productivity gains for the relatively more eco-concerned country, while the effects for the relatively less eco-concerned country are the opposite.
    Keywords: eco-labelling, Firm heterogeneity, trade integration, voluntary environmental regulation, firms productivity
    JEL: F18
    Date: 2017–07
  4. By: A. Bergeaud; S.Ray
    Abstract: Adjustment costs impair the optimal allocation of production factor across firms. In this paper, we use the cost associated with corporate relocation to explore the effect of the adjustment costs of the premises size on factor demand. We rely on the tax on realized capital gains on real estate asset, which entails varying real estate adjustment costs across firms, to empirically study the effect of these frictions on firms' behaviour. We develop a general equilibrium model, with heterogeneous firms, that sheds light on the implication of the level of the fixed costs associated with the adjustment of real estate on the change in firms' labor demand following productivity shocks. This model predicts that employment growth of firms facing positive productivity shocks shrinks with the level of the frictions. Confronting these results using French firm-level data over the period 1994-2013, we find that higher adjustment costs constrain relocation and reduce job creation of the most dynamic firms. The highlighted frictions have noticeable macroeconomic effects.
    Keywords: Corporate real estate; Firms' relocation; Adjustment costs; Misallocation of resources.
    JEL: D21 D22 H25 J21 O52 R30
    Date: 2017
  5. By: Naoki Yoshihara (Department of Economics, University of Massachusetts Amherst); Roberto Veneziani (School of Economics and Finance, Queen Mary University of London)
    Abstract: This paper analyses the theoretical issues related to the measurement of labour content for general technologies with heterogeneous labour. A novel axiomatic framework is used in order to formulate the key properties of the notion of labour content and analyse its theoretical foundations. The main measures of labour content used in various strands of the literature are then characterised. Quite surprisingly, a unique axiomatic structure can be identified which underlies measures of labour aggregates used in such diverse fields as neoclassical growth theory, input-output approaches, productivity analysis, and classical political economy.
    Keywords: Labour content, Labour productivity, Technical change, Axiomatic analysis
    JEL: D57 J24 O33 D46
    Date: 2017–09
  6. By: Coll Martínez, Eva
    Abstract: The aim of this paper is to infer the spatial extent of agglomeration economies for the creative service industries (SCI) in Barcelona and its relationship with firms’ performance. Using data from Mercantile Register (SABI) that provides micro-geographic data of firms between 2006 and 2015 I estimate the effect of intra-industry and inter-industry agglomeration in rings around location on productivity in Barcelona. Main results are that, (1) for CSI, at a micro-spatial level, localisation economies are not so relevant, although much work still remains to be done on this issue ; (2) while for Non-SCI having creative workers in the near proximity (250 metres) seems to enhance their productivity; and (3) for the symbolic - based CSI localisation economies – mainly understood as networking and knowledge externalities – have positive effects on TFP at shorter distances (less than 250 metres), while for the two other knowledge based CSI (i.e., synthetic and analytical) localisation economies seem not to be so relevant. These results strongly suggest the importance of networking or information spillovers in CIs, which are strongly concentrated in the largest cities. Keywords: creative industries, agglomeration economies, distance - based methods, micro-geographic data, Barcelona
    Keywords: Creativitat en els negocis -- Barcelona, 33 - Economia,
    Date: 2017
  7. By: Sugihara, Yoshitaka
    Abstract: Japanese IT investment has stagnated. Though some Japanese companies are investing in IT, this does not represent offensive IT investment. I analyzed what kind of IT investment would lead company profit, growth, and what kind of IT investment made reluctance for companies. I found out empirical relations between IT investment and corporate productivity. Analyses of productivity revealed low productivity among some business types and fields, where significantly fewer benefits were being produced by IT investment. Based on these results, I showed how productivity improvement supported by IT investment encourages company profit and growth. These results indicated further discussion for government policy implications.
    Keywords: Innovation,Productivity,IT governance,ROE,Growth,Management
    Date: 2017
  8. By: Shaomeng Jia (Mississippi State University, Department of Economics); Yang Zhou (West Virginia University, Department of Economics)
    Abstract: We investigate the effects of economic freedom (marketization) on governance efficiency defined with the newest provincial level economic indicator data (NBSC, 2017) and economic freedom data (Fan et al., 2017) from 2008 to 2014 in China. With two different measures, the results suggest that economic freedom is positively correlated with governance efficiency. Moreover, the liberalization and marketization progress in the “factors market†is the single most significant area for both governance efficiency measures, while other areas like “market intermediary & legal system†have no significant effects.
    Keywords: economic freedom, governance efficiency, marketization, regional economics, China
    JEL: H11 P25 P37
    Date: 2017–09
  9. By: Li Zheng (LAAS-ISI - Équipe Ingénierie Système et Intégration - LAAS - Laboratoire d'analyse et d'architecture des systèmes [Toulouse] - INP - Institut National Polytechnique [Toulouse] - INSA Toulouse - Institut National des Sciences Appliquées - Toulouse - INSA - Institut National des Sciences Appliquées - UPS - Université Paul Sabatier - Toulouse 3 - CNRS - Centre National de la Recherche Scientifique); Claude Baron (LAAS-ISI - Équipe Ingénierie Système et Intégration - LAAS - Laboratoire d'analyse et d'architecture des systèmes [Toulouse] - INP - Institut National Polytechnique [Toulouse] - INSA Toulouse - Institut National des Sciences Appliquées - Toulouse - INSA - Institut National des Sciences Appliquées - UPS - Université Paul Sabatier - Toulouse 3 - CNRS - Centre National de la Recherche Scientifique); Philippe Esteban (LAAS-ISI - Équipe Ingénierie Système et Intégration - LAAS - Laboratoire d'analyse et d'architecture des systèmes [Toulouse] - INP - Institut National Polytechnique [Toulouse] - INSA Toulouse - Institut National des Sciences Appliquées - Toulouse - INSA - Institut National des Sciences Appliquées - UPS - Université Paul Sabatier - Toulouse 3 - CNRS - Centre National de la Recherche Scientifique); Rui Xue (LAAS-ISI - Équipe Ingénierie Système et Intégration - LAAS - Laboratoire d'analyse et d'architecture des systèmes [Toulouse] - INP - Institut National Polytechnique [Toulouse] - INSA Toulouse - Institut National des Sciences Appliquées - Toulouse - INSA - Institut National des Sciences Appliquées - UPS - Université Paul Sabatier - Toulouse 3 - CNRS - Centre National de la Recherche Scientifique); Qiang Zhang (HFUT - Hefei University of Technology)
    Abstract: Performance measurement systems have gotten remarking development since the 1980s. It is also experiencing a step from classical PMSs to a broad diversification of PMSs. However, it seems that the practices in industries are not following the rapid academic rhythm. This paper presents a survey of performance measurement models and frameworks and analyses how these research results are implemented, or not, into software tools available on the market. It thus pointed out the gap between academic research results and supporting tools in the domain of the performance measurement management of engineering projects.
    Keywords: Performance Measurement,Project Evaluation,Indicators
    Date: 2016–06–28
  10. By: John Asker; Allan Collard-Wexler; Jan De Loecker
    Abstract: This paper estimates the extent to which market power is a source of production misallocation. Productive inefficiency occurs through more production being allocated to higher-cost units of production, and less production to lower-cost production units, conditional on a fixed aggregate quantity. We rely on rich micro-data covering the global market for crude oil, from 1970 to 2014, to quantify the extent of productive misallocation attributable to market power exerted by the OPEC. We find substantial productive inefficiency attributable to market power, ranging from 14.1 percent to 21.9 percent of the total productive inefficiency, or 105 to 163 billion USD.
    JEL: D2 L1 L4 L72
    Date: 2017–09
  11. By: Khalid Maman Waziri (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille)
    Abstract: This paper highlights the limitations inherent to the stochastic earnings frontier methodology to analyzing wage discrimination and introduces the use of the metafrontier approach as an important improvement. Using US data from the Current Population Survey, we find that white women’s and black men’s maximum attainable hourly earnings represent respectively 80% and 76% of those of white men on average. Furthermore, the metafrontier approach shows that male-female and white-black differences in maximum attainable earnings are observed at all levels of human capital. This innovative methodology permits the identification of a “generalized” glass ceilings against females and blacks in the US.
    Keywords: wage differentials, discrimination, glass ceiling, stochastic frontier, stochastic metafrontier approach, sample selection correction
    JEL: J31 J71 C13
    Date: 2017–08
  12. By: Antoszewski, Michal (Ministry of Finance, Warsaw School of Economics)
    Abstract: This paper provides a broad range of estimates of substitution elasticities for sectoral nested CES production functions, using panel data techniques, with the World Input-Output Database (WIOD) as the main data source. Although the related empirical literature has been growing over the recent years, there is still no single study focused on a large-scale estimation of various sectoral elasticities with a use of a common database and methodology. This paper constitutes an attempt to fill this gap. The obtained estimates may be subsequently used by Computable General Equilibrium (CGE) modellers in their applied research. A significant heterogeneity in estimated elasticity values is observed between various industries/products, as well as between various nests of the production function. This constitutes a strong argument against the arbitrary use of Leontief and/or Cobb- Douglas specifications in CGE models. It also turns out that, in most cases, obtained long-run elasticities are higher than in the short run. In addition, the analytical specification of estimated equation and time series properties of panel data (stationarity and cointegration) play a crucial role in determining the "correct" type of dynamic model (autoregressive distributed lag model, error correction model or model for differenced series) for a particular sector-nest combination and, in turn, in determining the preferred values of elasticity estimates.
    Keywords: substitution elasticity; CES production function; panel data analysis
    JEL: C23 D57 Q43
    Date: 2017–09–08
  13. By: Shirokova, G.; Ivvonen, L.
    Abstract: This study examines how components of strategic entrepreneurship (exploration and exploitation) relate to Russian SMEs performance during the economic crisis and to what extent combinations of firm resources determine these relationships. In order to address these issues we surveyed 651 Russian private SMEs. Our results show that during the economic crisis exploitation is positively associated with SME’s performance. However, we found positive association of exploration with SME’s performance during the economic crisis instead of negative association. Our results also indicate that relationship between exploration as well as exploitation and firm performance is dependent on different combinations of firm resources.
    Keywords: strategic entrepreneurship, exploration, exploitation, SME, sfirm performance, economic crisis, human capital, financial capital, Russia,
    Date: 2016

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