|
on Efficiency and Productivity |
|
Issue of 2019‒08‒26
seventeen papers chosen by |
| By: | Jorge Alvarez; Claudia Berg |
| Abstract: | A large share of cross-country differences in productivity is explained by differences in agricultural productivity. Using a combination of sub-national agricultural statistics and geospatial datasets on crop-specific potential yields, we study the main drivers of this variation from a macroeconomic perspective. We find that differences in geographically-induced crop-specific comparative advantages can explain a substantial share of the variation in yields across the world. Data reveal substantial gaps between potential and observed yields in most countries. When decomposing these within country gaps, we find that crop selection gaps are on average larger than those induced by input usage alone. The results highlight the importance of understanding the interaction of geography and crop selection drivers in assessing aggregate agricultural productivity differences. |
| Date: | 2019–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/179&r=all |
| By: | Fanti, Lucrezia; Guarascio, Dario; Tubiana, Matteo |
| Abstract: | Relying on a unique integrated database, this work explores the relationship between labour productivity, on one side; intensity and characteristics of companies’ skills need and degree of skill mismatch, on the other. The analysis focuses on a representative sample of Italian limited liability companies observed during the years 2012, 2014 and 2017. First, companies acknowledging the need to update their knowledge base display a higher productivity vis-à-vis other firms. Second, when it comes to the skill need distinguished by competence/knowledge domains (management, STEM, social and soft skills, technical operatives and humanities) it emerges that companies looking for technical operative and social skills show lower labour productivity as compared to other firms. On the contrary, companies characterized by a need in managerial, STEM or humanities-related skills show higher productivity. Third, the ability to match the skill need via new hiring is always positively correlated with firms’ productivity. This result is confirmed across all the adopted specifications. |
| Keywords: | labour productivity,skill mismatch,firm-level heterogeneity,knowledgebase,organizational capabilities |
| JEL: | D22 D80 J24 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:376&r=all |
| By: | Farida Titik Kristanti (Faculty of Economics and Business, Telkom University, Indonesia Author-2-Name: Sri Rahayu Author-2-Workplace-Name: Telkom University, Jl Telekomunikasi, Terusan Buah Batu, Bandung, 40257, West Java, Indonesia Author-3-Name: Deannes Isynuwardhana Author-3-Workplace-Name: Telkom University, Jl Telekomunikasi, Terusan Buah Batu, Bandung, 40257, West Java, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - The growth of SMEs in Indonesia is rising from year to year. As an anticipation of bankruptcy, predictions can be made in an integrated means from the perspective of capital structure, financial, and non-financial performance. Methodology/Technique - A sample of 39 companies were selected using purposive sampling during the research period of 2013-2017. The results of the statistical logistic regression show that profitability is an important factor in predicting financial distress of the SMEs in Indonesia. Finding - The operating income to total assets has a negative and significant effect on SMEs financial distress. Meanwhile, retained earnings to total assets have a positive impact. Indonesian SMEs must be efficient in their operational costs to avoid financial distress. Novelty - In addition, sales are also important. If the company's sales are high, and the operational cost efficiency is maintained, the retained earnings will increase. This means that the company will be safe and able to avoid financial distress. Type of Paper - Empirical. |
| Keywords: | Capital Structure; Financial; Distress; Non-Financial; Performance. |
| JEL: | G32 G33 G34 |
| Date: | 2019–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr175&r=all |
| By: | Dan Andrews; Chiara Criscuolo; Peter N. Gal |
| Abstract: | We are grateful to Daron Acemoglu, Ufuk Akcigit, Martin Baily, Eric Bartelsman, Giuseppe Berlingieri, Olivier Blanchard, Patrick Blanchenay, Nick Bloom, Erik Brynjolffson, Sara Calligaris, Gilbert Cette, Mirko Draca, Luis Garicano, John Fernald, Jonathan Haskel, Remy Lecat, Catherine L. Mann, Giuseppe Nicoletti, Dirk Pilat, Alessandro Saia, Louise Sheiner, Chad Syverson, John Van Reenen and Andrew Wyckoff, Jeromin Zettelmeyer for their valuable comments and suggestions. We would also like to thank seminar participants at the Bank of England, Bank of Canada, the Brookings Institution, the Central Bank of the Netherlands, ESCoE, European Commission, France Strategie, IMF, MIT, NBER Productivity, Innovation and Entrepreneurship Program meeting, OFCE, Peterson Institute for International Economics, Royal Economic Society, UCL, US Census Bureau, and participants at the OECD Global Forum on Productivity Conferences in Mexico City and Lisbon as well as OECD Committee Meetings. The opinions expressed and arguments employed herein are solely those of the authors and do not necessarily reflect the official views of the OECD or its member countries. |
| Keywords: | firm dynamics, regulation, knowledge diffusion, technological change, productivity |
| JEL: | O30 O40 M13 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1645&r=all |
| By: | Riko Hendrawan (Faculty Economic and Business, Telkom University, Indonesia Author-2-Name: Kristian WA Nugroho Author-2-Workplace-Name: Faculty Economic and Business, Telkom University, Indonesia Author-3-Name: Gayuh T Permana Author-3-Workplace-Name: Faculty Economic and Business, Telkom University, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - The telecom industry is one of the optimistic industries that is still growing. In South East Asia, between 2008-2017, the number of subscribers increased 10.07% annually, and revenue for the industry grew 6.08% annually. However, Net Profit Margin, EBITDA, and EBIT value during the same period declined at the time revenue amount was increasing. One of the visible health factors and part of the valuation factor is stock value. Hence the research question of this study is: What is the impact and significance of telecom operators' efficiency to stock value? Methodology/Technique - In this study, efficiency will be measured and analyzed using Stochastic Frontier Approach (SFA) method. By using same method, the impact of efficiency to stock value will be measured, as well as the significance level. Finding - The results of this research show that from 14 telecom operators observed, TLKM (Indonesia) obtained the highest efficiency score (0.984) whereas StarHub (Malaysia) had the lowest efficiency score (0.405). TLKM (Indonesia) and AIS (Thailand) had a similar efficiency score given the fact that the behaviour of the subscribers is similar and they have the same country characteristic. Novelty - All of the input and output variables have a positive impact on the efficiency parameter except Total Asset which has negative impact on the efficiency score. By using further analysis of the t-Ratio between the variables and efficiency, it can be seen that stock value is impacted by the efficiency parameters but this impact is not significant (t-Ratio 1.35). Type of Paper - Empirical. |
| Keywords: | Efficiency; Telecom Operators; Stock Value, Indonesia. |
| JEL: | G14 G32 G39 |
| Date: | 2019–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr157&r=all |
| By: | Ngango, Jules; Lee, Jungmyung; Kim, Seung Gyu |
| Keywords: | Production Economics |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291139&r=all |
| By: | Tamás Krisztin; Philipp Piribauer (WIFO) |
| Abstract: | In this paper we propose a Bayesian estimation approach for a spatial autoregressive logit specification. Our approach relies on recent advances in Bayesian computing, making use of Pólya-Gamma sampling for Bayesian Markov-chain Monte Carlo algorithms. The proposed specification assumes that the involved log-odds of the model follow a spatial autoregressive process. Pólya-Gamma sampling involves a computationally efficient treatment of the spatial autoregressive logit model, allowing for extensions to the existing baseline specification in an elegant and straightforward way. In a Monte Carlo study we demonstrate that our proposed approach significantly outperforms existing spatial autoregressive probit specifications both in terms of parameter precision and computational time. The paper moreover illustrates the performance of the proposed spatial autoregressive logit specification using pan-European regional data on foreign direct investments. Our empirical results highlight the importance of accounting for spatial dependence when modelling European regional FDI flows. |
| Keywords: | Spatial autoregressive logit, Bayesian MCMC estimation, FDI flows, European regions |
| Date: | 2019–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2019:i:586&r=all |
| By: | Almeida, Heitor; Ersahin, Nuri; Fos, Vyacheslav; Irani, Rustom M; Kronlund, Mathias |
| Abstract: | Previous research shows that stock repurchases that are caused by earnings management lead to reductions in firm-level investment and employment. It is natural to expect firms to cut less productive investment and employment first, which could lead to a positive effect on firm-level productivity. However, using Census data, we find that firms make cuts across the board irrespective of plant productivity. This pattern seems to be associated with frictions in the labor market. Specifically, we find evidence that unionization of the labor force may prevent firms from doing efficient downsizing, forcing them to engage in easy or expedient downsizing instead. As a result of this inefficient downsizing, EPS-driven repurchases lead to a reduction in long-term productivity. |
| Keywords: | employment; investment; Labor Unions; productivity; Share repurchases; Short-termism |
| JEL: | G32 G35 J23 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13894&r=all |
| By: | Han, Yan; Smith, Rodney B.W. |
| Keywords: | Productivity Analysis |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291183&r=all |
| By: | Shahzad, Muhammad Faisal; Abdulai, Awudu |
| Keywords: | Risk and Uncertainty |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291283&r=all |
| By: | Constantin Chilarescu |
| Abstract: | The main aim of this paper is to prove the existence of a new production function with variable elasticity of factor substitution. This production function is a more general form which includes the Cobb-Douglas production function and the CES production function as particular cases. The econometric estimates presented in the paper confirm some other results and reinforces the conclusion that the sigma is well-below the Cobb-Douglas value of one. |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1907.12624&r=all |
| By: | Kim, Jongwoo; Mason, Nicole M. |
| Keywords: | Productivity Analysis |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291198&r=all |
| By: | M. S. S. Rosa; P. R. B. Lustosa |
| Abstract: | Following the value relevance literature, this study verifies whether the marketplace differentiates companies of high, medium, and low long-term operational performance, measured by accounting information on profitability, sales variation and indebtedness. The data comprises the Corporate Financial Statements disclosed during the period from 1996 to 2009 and stock prices of companies listed on the Sao Paulo Stock Exchange and Commodities and Futures Exchange - BM&FBOVESPA. The final sample is composed of 142 non-financial companies. Five year mobile windows were used, which resulted in ten five-year periods. After checking each company indices, the accounting variables were unified in an Index Performance Summary to synthesize the final performance for each five-year period, which allowed segregation in operational performance levels. Multiple regressions were performed using panel data techniques, fixed effects model and dummies variables, and then hypothesis tests were made. Regarding the explanatory power of each individual variable, the results show that not all behaviors are according to the research hypothesis and that the Brazilian stock market differentiates companies of high and low long-term operational performance. This distinction is not fully perceived between companies of high and medium operational performance. |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1907.11719&r=all |
| By: | Sesmero, Juan Pablo; Bauchet, Jonathan |
| Keywords: | Resource/ Energy Economics and Policy |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:291246&r=all |
| By: | Bostian, Moriah (Department of Economics, Lewis & Clark College); Färe, Rolf (Department of Economics, Oregon State University); Grosskopf, Shawna (Department of Economics, Oregon State University); Lundgren, Tommy (CERE - the Center for Environmental and Resource Economics) |
| Abstract: | We develop a network technology model for pollution abatement that distinguishes between the two primary forms that abatement can take: Prevention of emissions from occurring in the first place, and treatment of any emissions that are generated by the production process. Our network model separates the production process into two stages, an initial production and prevention stage and a final treatment (or cure) stage. We allow for reallocation of abatement resources across the production stages, in order to improve overall abatement and production efficiency and better understand the tradeoffs between the two forms of abatement. This framework is relevant in practice for a number of industrial production processes, including manufacturing and energy, which employ multiple abatement measures at different stages of production. To illustrate, we apply the prevention-treatment network model to estimate the production and abatement technology for firms in Sweden’s pulp and paper manufacturing sector. We find that with reallocation of prevention and treatment resources, the industry could achieve further gains to both production and emissions reductions, relative to those estimated using the more common single-stage approach to technology estimation for pollution-generating processes. In practice, these results could be used by producers for improving managerial efficiency, and by policy makers to better target abatement incentives to the most effective aspects of production. |
| Keywords: | Network DEA; Carbon Policy; Abatement Cost; Environmental Performance |
| JEL: | D21 D22 D24 |
| Date: | 2019–08–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2019_011&r=all |
| By: | Hall, David C.; Rasmussen, Philip |
| Keywords: | Agribusiness |
| Date: | 2019–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea19:290704&r=all |
| By: | Ariel Soto-Caro; Feng Wu; Zhengfei Guan |
| Abstract: | Farmers use pesticides to reduce yield losses. The efficacies of pesticide treatments are often evaluated by analyzing the average treatment effects and risks. The stochastic efficiency with respect to a function is often employed in such evaluations through ranking the certainty equivalents of each treatment. The main challenge of using this method is gathering an adequate number of observations to produce results with statistical power. However, in many cases, only a limited number of trials are replicated in field experiments, leaving an inadequate number of observations. In addition, this method focuses only on the farmer's profit without incorporating the impact of disease pressure on yield and profit. The objective of our study is to propose a methodology to address the issue of an insufficient number of observations using simulations and take into account the effect of disease pressure on yield through a quantile regression model. We apply this method to the case of strawberry disease management in Florida. |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1908.01808&r=all |