nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2021‒11‒01
fourteen papers chosen by

  1. Agglomeration and the Italian North-South divide By Luigi Buzzacchi; Antonio De Marco; Marcello Pagnini
  2. Impact evaluation in a multi-input multi-output setting: Evidence on the effect of additional resources for schools By Giovanna D'Inverno; Mike Smet; Kristof De Witte
  3. Assessing the Effect of Noisy Data on Duality Estimates By Rosas, Juan Francisco; Lence, Sergio H.
  4. Pay, Productivity and Management By Nicholas Bloom; Scott W. Ohlmacher; Cristina J. Tello-Trillo; Melanie Wallskog
  5. An Alternative Ranking of DMUs Performance for the ZGS-DEA Model By Thanasis Bouzidis; Giannis Karagiannis
  6. Productivity and GDP: International Evidence of Persistence and Trends Over 130 Years of Data By Luis A. Gil-Alana; Sakiru Adebola Solarin; Rangan Gupta
  7. The impact of CSR performance on Efficiency of Investments using Machine Learning By Nadia Lakhal; Asma Guizani; Asma Sghaier; Mohammed El َamine Abdelli; Imen Ben Slimene
  8. Local government size and service level provision. Evidence from conditional non-parametric analysis By Giovanna D'Inverno; Wim Moesen; Kristof De Witte
  9. The Impact of Fake Reviews on Reputation Systems and Efficiency By Krügel, Jan Philipp; Paetzel, Fabian
  10. Firm Entry and Exit and Aggregate Growth By Jose Asturias; Sewon Hur; Timothy J. Kehoe; Kim J. Ruhl
  11. The Distribution of Energy Efficiency and Regional Inequality By Singhal, Puja; Hobbs, Andrew
  12. Does Khat Consumption Affect Work Performance ? A Micro-Perspective from Djibouti By Mohamed Abdallah Ali; Mazhar Mughal; Charles Kodjo Mawusi
  13. Gender Differences in Agricultural Technology Adoption and Crop Productivity: Evidence from Malawi By Tufa, Adane; Alene, Arega; Cole, Steven M.; Manda, Julius; Feleke, Shiferaw; Abdoulaye, Tahirou; Chikoye, David; Manyong, Victor M.
  14. Efficiency of district hospitals in Zimbabwe: Assessment, drivers and policy implications By Marlène Guillon; Martine Audibert; Jacky Mathonnat

  1. By: Luigi Buzzacchi (Politecnico di Torino); Antonio De Marco (Politecnico di Torino); Marcello Pagnini (Bank of Italy)
    Abstract: This paper offers novel evidence on agglomeration economies by examining the link between total factor productivity (TFP) and employment density in Italy. TFP is estimated for a large sample of manufacturing firms and then aggregated at the level of Local Labor Market Areas (LLMAs). We tackle the endogeneity issues stemming from the presence of omitted covariates and reverse causation with an instrumental variable (IV) approach that relies on his-torical and geological data. Our estimate of the TFP elasticity with respect to the spatial con-centration of economic activities is about 6%, a magnitude comparable to that measured for other developed countries. We find that the TFP-density nexus contributes to explaining a large share of the substantial productivity gap between the northern and southern regions of Italy. We also show that no significant heterogeneity emerges in the intensity of agglomera-tion economies across the country and that the positive TFP difference in favor of the firms located in the North is not due to the tougher competition taking place in those areas.
    Keywords: agglomeration economies, density, total factor productivity, regional disparities, selection effects
    JEL: R12 R23
    Date: 2021–10
  2. By: Giovanna D'Inverno; Mike Smet; Kristof De Witte
    Abstract: This paper proposes an innovative approach to evaluate the causal impact of a policy change in a multi-input multi-output setting. It combines insights from econometric impact evaluation techniques and efficiency analysis. In particular, the current paper accounts for endogeneity issues by introducing a quasi-experimental setting within a conditional multi-input multi-output efficiency framework and by decomposing the overall efficiency between ‘group-specific’ efficiency (i.e., reflecting internal managerial inefficiency) and ‘program’ efficiency (i.e., explaining the impact of the policy intervention on performance). This framework allows the researcher to interpret the efficiency scores in terms of causality. The practical usefulness of the methodology is demonstrated through an application to secondary schools in Flanders, Belgium. By exploiting an exogenous threshold, the paper examines whether additional resources for disadvantaged students impact the efficiency of schools. The empirical results indicate that additional resources do not causally influence efficiency around the threshold.
    Keywords: Data envelopment analysis, Impact evaluation, Efficiency, Causal inference, Equal Educational Opportunities
    Date: 2020–08–31
  3. By: Rosas, Juan Francisco; Lence, Sergio H.
    Keywords: Production Economics, Productivity Analysis, Marketing
    Date: 2021–08
  4. By: Nicholas Bloom; Scott W. Ohlmacher; Cristina J. Tello-Trillo; Melanie Wallskog
    Abstract: Using confidential Census matched employer-employee earnings data we find that employees at more productive firms, and firms with more structured management practices, have substantially higher pay, both on average and across every percentile of the pay distribution. This pay-performance relationship is particularly strong amongst higher paid employees, with a doubling of firm productivity associated with 11% more pay for the highest-paid employee (likely the CEO) compared to 4.7% for the median worker. This pay-performance link holds in public and private firms, although it is almost twice as strong in public firms for the highest-paid employees. Top pay volatility is also strongly related to productivity and structured management, suggesting this performance-pay relationship arises from more aggressive monitoring and incentive practices for top earners.
    JEL: J0 L0
    Date: 2021–10
  5. By: Thanasis Bouzidis (Department of Economics, University of Macedonia); Giannis Karagiannis (Department of Economics, University of Macedonia)
    Abstract: The Zero-Sum Gains Data Envelopment Analysis (ZSG-DEA) model was developed to evaluate the performance of Decision Making Units (DMUs) under output interdependency, which is evident when the total (over DMUs) observed output is a priori fixed. In this paper, we take a closer look at the derivation and interpretation of the ZSG-DEA efficiency scores and we explain why these are not really comparable across DMUs. Moreover, we verify that DMUs’ ranking based on their ZSG-DEA efficiency scores is in fact incompatible with output interdependency, which requires total potential output of DMUs to be equal to their total observed output. Then, we propose an alternative metric of DMUs’ performance that is both consistent with output interdependency and comparable across DMUs. This metric is used for classifying DMUs into three (high, average or low performance) groups and for ranking them within these groups. To illustrate its empirical applicability, we use data from the Olympic Games, where output interdependency is clearly evident since the total number of awarded (gold, silver, and bronze) medals is a priori fixed.
    Keywords: Data Envelopment Analysis (DEA); Output Interdependency; Fixed-Sum Output; Zero-Sum Gains (ZSG); Performance Metric
    Date: 2021–10
  6. By: Luis A. Gil-Alana (University of Navarra, Pamplona, Spain); Sakiru Adebola Solarin (University of Notthingham Malaysia, Malaysia); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa)
    Abstract: The degree of persistence of the real gross domestic product per capita, total factor productivity and labour productivity has been examined in a group of 23 developed and developing nations, as well as the overall Euro Area, by evaluating the order of integration of the macroeconomic series over the annual period from 1890 to 2019. As against the conventional use of using integer degrees of differentiation (i.e., 0 for stationarity and 1 in case of unit roots), fractional values have been utilized. The empirical findings suggest evidence for mean reversion in both total factor productivity and the real gross domestic product per capita in Chile, Germany, Netherlands and New Zealand. The results further suggest that mean reversion only occur in labour productivity of Australia. The non-linearity analysis shows that non-linearity in the three series occur only in the U.S and occurs in two of the three series in Chile, Spain and Mexico. The policy implications of the results are enumerated in the body of the paper.
    Keywords: Productivity, GDP, persistence, long memory, fractional integration
    JEL: C22
    Date: 2021–10
  7. By: Nadia Lakhal (Lamided, ISG, Université de Sousse - LAMIDED); Asma Guizani (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM]); Asma Sghaier (Department of Finance, University Of Sousse, Sousse, Tunisia.); Mohammed El َamine Abdelli (University of Brest); Imen Ben Slimene (UGA [2016-2019] - Université Grenoble Alpes [2016-2019])
    Keywords: CSR,Investment Efficiency,Machine learning,Stakeholder Theory
    Date: 2021–09–28
  8. By: Giovanna D'Inverno; Wim Moesen; Kristof De Witte
    Abstract: Although the local provision of public goods accommodates better to the heterogeneous local preferences and mitigates the fiscal illusion problem, it comes at the cost of potential diseconomies of scale. This paper examines the relationship between municipal size and local service level provision by applying state-of-the-art non-parametric techniques to a unique panel dataset of Flemish data. We measure the service provision level by using an innovative robust conditional ‘Benefit of the Doubt’ model and we estimate its efficiency in relationship with the local expenditures by means of a robust conditional Data Envelopment Analysis model. Overall, the main findings suggest the presence of diseconomies of scale, and provide weak evidence on an optimal size of local public good provision of around 10,000 citizens.
    Keywords: Efficiency analysis; Municipal mergers; Municipal expenditure; Local governments; Composite indicator
    Date: 2020
  9. By: Krügel, Jan Philipp; Paetzel, Fabian
    JEL: C72 C91 D83 L14
    Date: 2021
  10. By: Jose Asturias; Sewon Hur; Timothy J. Kehoe; Kim J. Ruhl
    Abstract: Applying the Foster, Haltiwanger and Krizan (FHK) (2001) decomposition to plant-level manufacturing data from Chile and Korea, we find that the entry and exit of plants account for a larger fraction of aggregate productivity growth during periods of fast GDP growth. To analyze this relationship, we develop a model of firm entry and exit based on Hopenhayn (1992). When we introduce reforms that reduce entry costs or reduce barriers to technology adoption into a calibrated model, we find that the entry and exit terms in the FHK decomposition become more important as GDP grows rapidly, just as they do in the data from Chile and Korea.
    Keywords: Entry; Exit; Productivity; Entry costs; Barriers to technology adoption
    JEL: E22 O10 O38 O47
    Date: 2021–10–19
  11. By: Singhal, Puja; Hobbs, Andrew
    Abstract: This paper studies the long-term distribution of energy-efficiency outcomes in the German residential sector. To uncover the underlying energy efficiency of buildings, we estimate the causal response of building-level heat energy demand to variability in heating degree days. We examine heterogeneity in temperature response using both panel fixed-effects and causal forests. Our results suggest that the distribution of energy-efficiency is not equitable in the West of Germany, with buildings located in the South attaining the best energy performance standards. Although the housing stock in the East is significantly older and thus less subject to building standards, they perform better than the West counterpart, likely as a result of large investments in retrofitting post-reunification. Finally, we show that the regional distribution of energy-efficiency reflects differences in heating needs - thus, the poorer energy performance of buildings in the North-West should be weighed against the warmer climatic zone.
    Keywords: Heat Demand,Energy Efficiency,Targeting,Regional Distribution,Climate Change
    JEL: H23 Q52 Q48 Q54
    Date: 2021
  12. By: Mohamed Abdallah Ali (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique, IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau); Mazhar Mughal (ESC Pau); Charles Kodjo Mawusi (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Khat consumption has become a widespread habit with immense socioeconomic and cultural significance in Djibouti. As a cash crop, its production provides an important source of employment and income. Yet, its widespread consumption is of grave concern to policymakers. While the poor health implications of Khat use are well established, its impact particularly on the labor market remains relatively unknown. The present study, therefore, seeks to investigate the relationship between khat consumption and work performance using data comprising, 737 chewers and non-chewers based in six major urban centers of Djibouti. Using an instrumental variable identification strategy, and several econometric techniques, we find a negative and statistically significant relationship between the habitual use of Khat and work performance. The result is robust across all specification, econometric techniques, and even after accounting for the differences across income groups and educational levels. Our findings underscore the need for community sensitization on the negative labor market implications of khat use.
    Keywords: Work performance,Khat,Djibouti,Instrumental approach
    Date: 2021–10–13
  13. By: Tufa, Adane; Alene, Arega; Cole, Steven M.; Manda, Julius; Feleke, Shiferaw; Abdoulaye, Tahirou; Chikoye, David; Manyong, Victor M.
    Keywords: Research and Development/Tech Change/Emerging Technologies, Labor and Human Capital
    Date: 2021–08
  14. By: Marlène Guillon (UM - Université de Montpellier, MRE - Montpellier Recherche en Economie - UM - Université de Montpellier); Martine Audibert (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique, FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Jacky Mathonnat (CERDI - Centre d'Etudes et de Recherche en Droit de l'Immatériel - UP1 - Université Paris 1 Panthéon-Sorbonne - Université Paris-Saclay, FERDI - Fondation pour les Etudes et Recherches sur le Développement International)
    Date: 2021–09

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