|
on Efficiency and Productivity |
|
Issue of 2018‒07‒16
five papers chosen by |
| By: | Sara Calligaris (OECD); Massimo Del Gatto (G.d'Annunzio" University); Fadi Hassanz (Trinity College Dublin); Gianmarco Ottaviano (London School of Economics); Fabiano Schivardi (Università LUISS "Guido Carli") |
| Abstract: | Productivity has recently slowed down in many economies around the world. A crucial challenge in understanding what lies behind this \productivity puzzle" is the still short time span for which data can be analysed. An exception is Italy, where productivity growth started to stagnate 25 years ago. The Italian case can therefore offer useful insights to understand the global productivity slowdown. We find that resource misallocation has played a sizeable role in slowing down Italian productivity growth. If misallocation had remained at its 1995 level, in 2013 Italy's aggregate productivity would have been 18% higher than its actual level. Misallocation has mainly risen within sectors than between them, increasing more in sectors where the world technological frontier has expanded faster. Relative specialization in those sectors explains the patterns of misallocation across geographical areas and firm size classes. The broader message is that an important part of the explanation of the productivity puzzle may lie in the rising difficulty of reallocating resources across firms within sectors where technology is changing faster rather than between sectors with different speeds of technological change. |
| Keywords: | Misallocation, TFP, Productivity, Productivity Puzzle, Italy |
| JEL: | D22 D24 O11 O47 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lui:lleewp:18142&r=eff |
| By: | Garnero, Andrea (OECD); Rycx, Francois (Free University of Brussels); Terraz, Isabelle (Université de Strasbourg) |
| Abstract: | How do firm-level collective agreements affect firm performance in a multi-level bargaining system? Using detailed Belgian linked employer-employee panel data, our findings show that firm agreements increase both wage costs and productivity (with respect to sector-level agreements). Relying on a recent approach developed by Bartolucci (2014), they also indicate that firm agreements exert a stronger impact on wages than on productivity, so that profitability is hampered. However, this rent-sharing effect only holds in manufacturing. In private sector services, the raw wage premium associated to firm agreements is entirely driven by compositional effects. Furthermore, estimates show that firm agreements lead to significantly more rent-sharing among firms operating in less competitive environments. Firm agreements are thus mainly found to raise wages beyond productivity when the rents to be shared between workers and firms are relatively big. Overall, this suggests that firm-level agreements benefit to both employers and employees – through higher productivity and wages – without being very detrimental to firms' performance. |
| Keywords: | collective bargaining, productivity, labour costs, linked panel data |
| JEL: | C33 J24 J31 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11568&r=eff |
| By: | Zhenqian Huang (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | The high productivity growth in previous decades has enabled the Asia-Pacific region to make significant advances in economic development. Productivity in the region has grown faster than in other regions, yet growth is slowing.1 Technology development is critical to boost productivity growth and to sustain medium- to long-term economic resilience. The region has a great potential. However, technology advancement also brings risks of increasing inequality and adapting to the changing nature of work. Government policies could focus on strengthening fundamental infrastructure, providing knowledge and skills, introducing redistributive measures, supporting technology diffusion and enhancing regional and global cooperation. Recent ESCAP publications provide detailed insights into the topic. Please refer to Inequality in Asia And the Pacific in the Era of the 2030 Agenda for Sustainable Development and Frontier technologies for sustainable development in Asia and the Pacific. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb63&r=eff |
| By: | Argentiero, Amedeo; Cerqueti, Roy; Sabatini, Fabio |
| Abstract: | Abstract Social capital has been credited with playing a role in many desirable economic outcomes. We analyze how these potentially beneficial effects translate into the macro-performance of economies by developing a dynamic stochastic general equilibrium (DSGE) model featuring the role of social capital in the explanation of the Solow residual. We then simulate and estimate the model with Bayesian techniques using Italian data. Our framework fits actual data better than a standard DSGE model, suggesting that social capital may improve the economic performance via its impact on total factor productivity. |
| Keywords: | social capital; total factor productivity; Solow residual; DSGE models |
| JEL: | A13 A14 E22 O11 |
| Date: | 2018–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87100&r=eff |
| By: | Morteza Tahamipour; Mina Mahmoudi |
| Abstract: | This study provides the theoretical framework and empirical model for productivity growth evaluations in agricultural sector as one of the most important sectors in Iran's economic development plan. We use the Solow residual model to measure the productivity growth share in the value-added growth of the agricultural sector. Our time series data includes value-added per worker, employment, and capital in this sector. The results show that the average total factor productivity growth rate in the agricultural sector is -0.72% during 1991-2010. Also, during this period, the share of total factor productivity growth in the value-added growth is -19.6%, while it has been forecasted to be 33.8% in the fourth development plan. Considering the effective role of capital in the agricultural low productivity, we suggest applying productivity management plans (especially in regards of capital productivity) to achieve future growth goals. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1806.04235&r=eff |