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on Efficiency and Productivity |
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Issue of 2022‒04‒18
24 papers chosen by |
| By: | Świtłyk, Michał |
| Abstract: | The aim of the research was to assess the changes (in dynamic terms between 2008 and 2017) in the productivity of farms specializing in milk production with the use of the Färe-Primont aggregated total factor productivity index. The total factor productivity index was divided into the efficiency change index and technological change index. The research was conducted with the use of a data panel consisting of 730 farms per annum. Data were acquired from the Polish FADN. The research adopted the dairy farm model consisting of 1 output (Y) and 9 (X) inputs. The model of dairy farm adopted for calculation purposes was a minimum input farm, assuming variable returns to scale (VRS). Between 2008 and 2017, the Färe-Primont total factor productivity index decreased by 28% (0.720). Changes in the total factor productivity index (dTFP) were affected by a 21.6% (1.216) increase in technological changes and a 40.8% (0.592) decrease in efficiency changes (dTFPE). The research results demonstrate that the key source of productivity in Poland is the technological progress, while the efficiency changes contributed to a decrease in the Färe-Primont total factor productivity index. The larger the economic size of the farm, cow herd size, agricultural area, total labor input (AWU), and cow milk yield, the greater the changes in the Färe-Primont total factor productivity index. |
| Keywords: | Agricultural and Food Policy, Research Methods/ Statistical Methods |
| Date: | 2021–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:319786&r= |
| By: | Abay, Kibrom A.; Wossen, Tesfamicheal; Chamberlin, Jordan |
| Abstract: | Smallholder agriculture in sub-Saharan Africa is commonly characterized by high levels of technical inefficiency. However, much of this characterization relies on self-reported input and production data, which are prone to systematic measurement error. We theoretically show that non-classical measurement error introduces multiple identification challenges and sources of bias in estimating smallholders’ technical inefficiency. We then empirically examine the implications of measurement error for the estimation of technical inefficiency using smallholder farm survey data from Ethiopia, Malawi, Nigeria, and Tanzania. We find that measurement error in agricultural input and production data leads to a substantial upward bias in technical inefficiency estimates (by up to 85 percent for some farmers). Our results suggest that existing estimates of technical efficiency in sub-Saharan Africa may be severe underestimates of smallholders’ actual efficiency and what is commonly attributed to farmer inefficiency may be an artifact of mismeasurement in agricultural data. Our results raise questions about the received wisdom on African smallholders’ production efficiency and prior estimates of the productivity of agricultural inputs. Improving the measurement of agricultural data can improve our understanding of smallholders’ production efficiencies and improve the targeting of productivity-enhancing technologies. |
| Keywords: | ETHIOPIA; TANZANIA; EAST AFRICA; MALAWI; SOUTHERN AFRICA; NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; smallholders; measurement; errors; efficiency; field size; surveys; data; DNA fingerprinting; agricultural production; technical inefficiency estimates |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2105&r= |
| By: | Dieppe, Alistair; Matsuoka, Hideaki |
| Abstract: | This paper investigates how the sector-specific source or the changing sectoral composition of labor productivity has contributed to β-convergence, using a newly constructed eight-sector database. The main findings are twofold. First, both within and sectoral reallocation have become important drivers of β-convergence in labor productivity. Second, agricultural productivity growth has been a significant contributor to β-convergence, whereas catch-up in other sectors has only contributed a small amount to convergence. The strong growth of the agriculture sector has been the most important driver of aggregate productivity convergence even though agricultural productivity itself in low-income countries is not converging to that in advanced economies. |
| JEL: | O1 O11 O4 |
| Date: | 2022–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofitp:2022_004&r= |
| By: | Arnaud Abad (BETA - Bureau d'Économie Théorique et Appliquée - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper aims to define an unified framework to analyse pollution-adjusted productivity change. Equivalence conditions for the additive and the multiplicative pollutionadjusted productivity measures (Abad and Ravelojaona, 2022, 2021) are established. |
| Keywords: | Environmental Distance Functions,Pollution-generating Technology,Non Convexity,Pollution-adjusted Productivity Indices |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03592388&r= |
| By: | Czarnitzki, Dirk; Fernández, Gastón P.; Rammer, Christian |
| Abstract: | Artificial Intelligence (AI) is often regarded as the next general-purpose technology with a rapid, penetrating, and far-reaching use over a broad number of industrial sectors. A main feature of new general-purpose technology is to enable new ways of production that may increase productivity. So far, however, only very few studies investigated likely productivity effects of AI at the firm-level; presumably because of lacking data. We exploit unique survey data on firms' adoption of AI technology and estimate its productivity effects with a sample of German firms. We employ both a cross-sectional dataset and a panel database. To address the potential endogeneity of AI adoption, we also implement an IV approach. We find positive and significant effects of the use of AI on firm productivity. This finding holds for different measures of AI usage, i.e., an indicator variable of AI adoption, and the intensity with which firms use AI methods in their business processes. |
| Keywords: | Artificial Intelligence,Productivity,CIS data |
| JEL: | O14 O31 O33 L25 M15 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22005&r= |
| By: | Njuki, Eric |
| Abstract: | The U.S. dairy sector has undergone substantial structural change characterized by a shift to larger and fewer dairy operations, concentrated in relatively few States. This report measures and analyzes the dairy sector’s productivity growth and efficiency and identifies proximate drivers and sources of this growth in the face of the structural change observed from 2000 to 2020. Results indicate that productivity growth in the dairy sector was widespread, albeit with considerable variations by herd-size class, region, and production type. Western and Southwestern States—Idaho, New Mexico, Arizona, and California—experienced the fastest productivity growth with annual rates between 3.52 and 4.40 percent. Meanwhile, Southern States—Kentucky, Georgia, Missouri, and Tennessee—were the slowest growing with annual rates ranging between 0.89 and 1.74 percent. Furthermore, productivity across the largest herd-size class with more than 1,000 milk cows grew at an annual rate of 2.99 percent while the smallest herd-size class with fewer than 100 milk cows grew at an annual rate of 0.63 percent. Finally, organic dairy operations grew at a much slower pace of 0.66 percent compared with their conventional counterparts that grew at an annual rate of 2.51 percent. |
| Keywords: | Productivity Analysis |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:320329&r= |
| By: | Koike, Atushi; Sakaguchi, Takuhiro; Seya, Hajime |
| Abstract: | This study investigates the relationship between road infrastructure stock and total factor productivity (TFP) using R-JIP2017, a database of productivity by industry for each prefecture in Japan, which allows us to estimate TFP with considering the quality of inputs. Specifically, using the growth accounting method, we estimated TFP for each industry in each prefecture from 1972 to 2012, after the period of high economic growth. Afterwards, we conducted a panel data analysis to explain the estimated TFP by road stock. The results of a panel unit root test indicated the existence of unit roots in the road infrastructure stock. Therefore, unlike many previous studies, a panel autoregressive distributed lag (ARDL) model was used as the empirical model, considering the nonstationarity of the variables. The results of the analysis indicated that road stock had a positive and significant relationship with TFP at the 5% level in the majority of industries, even after the period of rapid economic growth. Further, we found that the two-way fixed effects model, which does not consider the non-stationarity of road infrastructure stock, could produce misleading results. |
| Keywords: | Total factor productivity (TFP); R-JIP; Road infrastructure; ARDL model |
| JEL: | R11 R40 R42 |
| Date: | 2022–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112375&r= |
| By: | Matteo Deleidi; Claudia Fontanari; Santiago J. Gahn |
| Abstract: | This paper aims to explain labour productivity through the lens of a Kaldorian perspective. To assess the relationship between output, demand, capital accumulation, and labour productivity, we apply Panel Structural Vector Autoregressive (P-SVAR) modelling to a dataset of 52 countries observed over a long-time span as provided by the Penn World Table. Findings validate the Kaldorian perspective and show that demand shocks – measured by government expenditures and exports – produce positive and persistent effects on labour productivity. Findings are confirmed even when the full sample is broken down to consider developed and developing countries separately. |
| Keywords: | Labour productivity; Autonomous demand; Panel SVAR; Penn World Table, Kaldor-Verdoorn |
| JEL: | C33 E12 E24 O33 O47 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2212&r= |
| By: | Simar, Léopold (Université catholique de Louvain, LIDAM/ISBA, Belgium); Wilson, Paul (Clemson University) |
| Abstract: | The hospital industry in many countries is characterized by right-skewed distributions of hospitals’ sizes and varied ownership types, raising numerous questions about the performance of hospitals of different sizes and ownership types. In an era of aging populations and increasing health-care costs, evaluating and understanding the consumption of resources to produce health-care outcomes is increasingly important for policy discussions. This paper discusses recent developments in the statistical and econometric literature on DEA and FDH estimators that can be used to examine hospitals’ technical efficiency and productivity. Use of these new results and methods is illustrated by revisiting the Burgess and Wilson hospital studies of the 1990s to estimate and make inference about the technical efficiency of U.S. hospitals, to make inference about returns to scale and other model features, and to test for differences among U.S. hospitals across ownership types and size groups in the context of a rigorous, statistical paradigm that was unavailable to researchers until recently. |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:aiz:louvad:2022006&r= |
| By: | Kuosmanen, Natalia; Kuosmanen, Timo; Ali-Yrkkö, Jyrki; Pajarinen, Mika |
| Abstract: | Abstract Productivity growth in Finland has slowed down due to structural change. Firms are in a continuous process of renewal in a dynamic economy. In addition to firms’ entry and exit, the structure of business sector also renews internally. Some firms renew their product and service offerings to such an extent that they change industry. We find that industry switching by firms are surprisingly common in Finnish business sector. As many as a quarter of companies in the early 2000s that continue to operate in 2018 have switched industries. Similar to entry and exit, the renewal of products and service offerings is a part of structural change that can impact productivity growth of industries. Industry switching has both positive and negative contributions to aggregate productivity in different industries and periods. Gradual industry switching mainly has negative impact on productivity growth suggesting that the change of industry is a survival strategy. On the other hand, more radical industry changes generally have positive impacts on productivity. This result is particularly relevant to the Finnish innovation policy that aims to provide incentives for continuous renewal of companies. Much research has been done on barriers to startup establishment. However, industry switching is also a form of entry, and the barriers of product switching and how those could be lowered should be further explored. |
| Keywords: | Industry, Industry switching, Productivity, Renewal, Structural change |
| JEL: | D4 O47 D23 |
| Date: | 2022–03–28 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:106&r= |
| By: | Axenbeck, Janna; Niebel, Thomas |
| Abstract: | Although information and communication technologies (ICT) consume energy themselves, they are considered to have the potential to reduce overall energy intensity within economic sectors. While previous empirical evidence is based on aggregated data, this is the first large-scale empirical study on the relationship between ICT and energy intensity at the firm level. For this purpose, we employ administrative panel data on 28,600 manufacturing firms from German Statistical Offices collected between 2009 and 2017. Our results confirm a statistically significant and robust negative link between software capital as an indicator for the firm-level degree of digitalization and energy intensity, but the effect size is rather small. Hence, we conclude that energy intensity reductions related to the use of digital technologies are lower than expected. |
| Keywords: | ICT,Firm-level panel data,Energy intensity improvements |
| JEL: | D22 D24 L60 O12 O14 O33 Q40 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21105&r= |
| By: | Pham, Manh D.; Simar, Léopold (Université catholique de Louvain, LIDAM/ISBA, Belgium); Zelenyuk, Valentin |
| Abstract: | The Malmquist Productivity Index (MPI) has gained popularity amongst studies on dynamic change of productivity of decision-making units (DMUs). In practice, this index is frequently reported at aggregate levels (e.g., public and private firms) in the form of simple equally-weighted arithmetic or geometric means of individual MPIs. A number of studies have emphasized that it is necessary to account for the relative importance of individual DMUs in the aggregations of indices in general and of MPI in particular. While more suitable aggregations of MPIs have been introduced in the literature, their statistical properties have not been revealed yet, preventing applied researchers from making essential statistical inferences such as confidence intervals and hypothesis testing. In this paper, we will fill this gap by developing a full asymptotic theory for an appealing aggregation of MPIs. On the basis of this, some meaningful statistical inferences are proposed and their finite-sample performances are verified via extensive Monte Carlo experiments. |
| Keywords: | Aggregation ; asymptotics ; DEA ; hypothesis test ; inference ; Malmquist index ; productivity |
| JEL: | C14 C44 C51 D24 M11 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:aiz:louvad:2022005&r= |
| By: | Vujanovic, Nina; Radosevic, Slavo; Stojcic, Nebojsa; Hisarciklilar, Mehtap; Hashi, Iraj |
| Abstract: | The beneficial effects of innovation for firm performance and competitiveness are well established but it has been suggested in recent years that innovation regimes differ between advanced and emerging economies. While advanced economies rely on knowledge generation, their emerging counterparts follow mainly knowledge use regime through the application of existing knowledge and technology. Climbing up the technological ladder can be helped through spillovers from foreign investors to local firms. We investigate whether FDI spillovers influence different phases of innovation process (from decision to innovate to productivity) among knowledge using and knowledge creating firms in an emerging European economy. The results show that innovation process in emerging economies is closer to imitation than creation of novel products. Local firms benefit from foreign counterparts in the early phase of innovation process. Stronger FDI effects are found on firms that undertake innovation through knowledge use than through knowledge generation. |
| Keywords: | knowledge use; knowledge generation; FDI; innovation; emerging economy |
| JEL: | O31 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:112396&r= |
| By: | Ahmadu, Joseph; Odum, Emmanuel Egbodo Boheje; Osariemen, Faith Omoyemwen |
| Abstract: | This study used descriptive statistics, budgetary analysis, and stochastic profit function to analyze data collected from 120 catfish fingerlings producers in Edo State, Nigeria to examine the profitability and profit efficiency of their production. Results from the study show that catfish fingerlings production is a male dominated activity with a modal age of 21-40 years and 53.3% engaged full time as fingerlings producers. Clarias gariepinus was the dominant species used for fingerlings production. Producers earn a revenue of NGN 2,885,443.2 and make NGN 2,084,004.24 as net profit per production cycle 120,000 implying that catfish fingerlings production is a profitable venture in the study area. Labor cost, depreciation, and cost of transportation affected the profits of fingerlings producers positively in that they led to an increase in their normalized profit. About 70% of the catfish fingerlings producers operated above the mean efficiency value implying that most of the farmers were relatively efficient in profit making. Inadequate water supply, cost of feed, high cost of transportation, and inadequate funds were the major constraints faced by the respondents in the study area. Pest and disease outbreaks were not serious constraints. The study therefore recommends that causes of inefficiencies should be considered and treated so as to enhance higher efficiencies by catfish fingerlings producers and to operate at the optimum profit frontier. It is also recommended that solutions should be proffered to constraints to catfish fingerlings production by concerned authorities to make the venture sustainable in meeting with demands all year round. |
| Keywords: | Agricultural and Food Policy, Livestock Production/Industries |
| Date: | 2021–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:319815&r= |
| By: | URATA Shujiro; Youngmin BAEK |
| Abstract: | This article examined the effect of participation in global value chains (GVCs) on productivity for Japanese manufacturing firms by using firm-level data obtained from the Basic Survey of Japanese Business Structure and Activities [Kigyo Katsudo Kihon Chosa], Ministry of Economy, Trade and Industry. We define a firm that is engaged in both importing and exporting as a GVC firm. Our analysis is conducted for the period 1994-2018, and it covers approximately 10,000 firms for each year with some variation during the period. We combine the Propensity Score Matching (PSM) and Difference in Differences (DID) estimation methods in order to examine the impact of a shift from being a non-GVC firm to a GVC firm, or participation in GVCs by a non-GVC firm, on its productivity. To test the importance of experience in GVC participation on productivity (learning effect), we estimated the impact not only for the first year of GVC participation but also for subsequent five years. Our analysis showed the impact of GVC participation on productivity is positive for our 110 estimations with few exceptions, and the estimated coefficients are statistically significant for approximately 35 percent of the cases. These findings indicate that the impact of GVC participation on productivity for Japanese manufacturing firms is generally positive, but the impact is not very strong. We also found that the magnitude of the positive coefficient increased over time, indicating that it takes GVC participating firms time and the accumulation of experience to assimilate new technology and management know-how they acquired through GVC participation. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:22021&r= |
| By: | Ms. Mercedes Garcia-Escribano; Ms. Tewodaj Mogues; Pedro Juarros |
| Abstract: | Demands for ramping up health expenditures are at an all-time high. Countries’ needs for additional health resources include responding to the COVID-19 pandemic, closing gaps in achieving the Sustainable Development Goal in health in most emerging and developing countries, and serving an ageing population in advanced economies. Facing limited fiscal space for raising health spending focuses policymakers’ attention on ensuring that resources are used efficiently. How sizable are the potential gains—in terms of freeing up resources and delivering better health outcomes—from improving health spending efficiency? How has efficiency evolved over the past decade? What can policymakers do to boost it? This paper estimates health spending efficiency across countries using bias-corrected data envelopment analysis and finds sizable differences in efficiency across countries, in particular among emerging and developing countries compared to advanced economies. The examination of the evolution of efficiency reveals that important efficiency gains have been made in the majority of countries. The paper also explores some of the key drivers of efficiency and finds that lower income inequality, less corruption, and health interventions oriented at expanding population access to basic health services are associated with greater efficiency. |
| Keywords: | health sector, expenditure efficiency, universal health coverage |
| Date: | 2022–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/048&r= |
| By: | Edward J. Balistreri; Maxwell Brown |
| Abstract: | We propose a method for calibrating an industry-level technology to engineering (bottom-up) estimates with a particular focus on abatement opportunities. As a demonstration, substitution elasticities across inputs are adjusted in the nested cost function for the electricity sector to best fit a target marginal abatement cost (MAC) curve derived from engineering assessments of available technologies. This approach is unique because the elasticities are optimized over an entire relevant range of the bottom-up estimates, whereas other techniques use information local to point estimates under little or no abatement. In the context of fitting to a given MAC we evaluate alternative nesting structures and find that, while complexity in nesting improves the fit, even relatively simple nesting structures can reasonably approximate the target MAC. In our example, focused on the electricity sector, we find standard elasticities adopted in top-down models moderately overstate abatement costs relative to the engineering targets. This conclusion, however, is sensitive to our assumption about output-intensity abatement and consumer price responsiveness, both of which are not delineated in engineering estimates. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:22-wp632&r= |
| By: | Rettl, Daniel A. (University of Georgia); Schandlbauer, Alexander (University of Southern Denmark); Trandafir, Mircea (University of Southern Denmark) |
| Abstract: | When workers are in bad health, their productivity declines. We investigate whether the health of employees affects firm performance, taking advantage of the severity of the seasonal influenza seasons as a source of exogenous variation. We find that firms whose employees are particularly affected by influenza experience reductions in their return on assets and in net income. These results are not driven by firm-specific characteristics, as we find the same relationship between influenza severity and firm performance within firms, at the establishment level. We also document substantial heterogeneity in the effects, with small firms and labor-intensive firms driving our findings. This suggests that labor is an important driver of firm performance and that capital-intensive and larger firms are better able to shift resources in response to temporary shocks to their workforce. Back-of-the-envelope calculations suggest that smaller firms may be better off subsidizing vaccination programs for their employees. |
| Keywords: | seasonal influenza, health shock, firm performance |
| JEL: | L25 I12 G30 J31 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15147&r= |
| By: | Mortimer-Lee, Paul; Adrian Pabst |
| Abstract: | The UK has one of the poorest productivity performances and highest spatial inequalities among the OECD’s 38 advanced economies and this has been made worse by Covid-19. If policymakers return to the same economic structures post-pandemic that failed to resolve the productivity problem pre- pandemic, then the UK is set for another decade of a low-growth, low-productivity and low-wage economy. |
| Keywords: | productivity, covid-19, spatial inequalities |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:niesro:62&r= |
| By: | TOKUI Joji; MIZUTA Takeshi |
| Abstract: | From the evidence of the R-JIP database we know that the main sectors driving recent productivity differentials among regions in Japan are not manufacturing but service sectors. At the same time, it is well known that in many service sectors locational convenience is crucial for productivity, and this characteristic of each region is supposed to be reflected in its land price. But land input as a factor of production is not usually accounted in the KLEMS-type productivity factorization. Thus, the calculated difference of total factor productivity in service sectors among regions may actually include the contribution of land input, which is expected to vary with the relative convenience of each location. In this paper we estimate land input of each industry in each prefecture in accordance with the R-JIP database 2021 and conduct a new analysis of productivity differentials among regions in Japan taking land input as well as labor and capital into account. To estimate the stock value of land we start from prefectural total value of commercial and industrial land, which is surveyed by the Ministry of Internal Affairs and Communications for the purpose of assessing real estate tax revenue of each municipality, and we correct the gap between market land price and government valuation for tax purposes. Then prefectural total value of land is multiplied by the industrial ratio of capital stock from the R-JIP database, and land to capital stock ratio from the Statistics of Corporations by Industry, and within manufacturing it is divided by land input from the Census of Manufacturers to get the value of land used by each industry. We then convert the estimated stock value of land into the value of land service input by applying the concept of user cost. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:22014&r= |
| By: | Letort, Elodie; Ridier, Aude |
| Abstract: | The economic performance of organic dairy farms, especially during the transitional period, is not consensus in economics studies, depending on the method used, the type of indicators, the nature and scale of the performance indicator, the geographical location. We compare the economic and financial performance of both conventional and organic dairy farms based on a mixed effect panel data model estimated on 1,016 farm micro-data collected between 2007and 2018 in two departments of Brittany. As in other studies, we find that the herd size influences positively all economic and financial indicators. Even if the growth in assets is heterogeneous among organic farms, it is higher than in other farms, which decreases their return on assets. Finally, even if they share the same objective of food autonomy and sparing variable expenses, dairy farms based on grassland production system do not exhibit the same performance dynamics as organic farms. |
| Keywords: | Agricultural Finance, Production Economics, Research Methods/ Statistical Methods |
| Date: | 2022–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:inrasl:320345&r= |
| By: | Gantert, Konstantin |
| Abstract: | Non-clearing goods markets are an important driver of capacity utilisation and total factor productivity (TFP). The trade-off between goods prices and household search effort is central to goods market matching and therefore drives TFP over the business cycle. In this paper, I develop a New-Keynesian DSGE model with capital utilisation, worker effort, and expand it with goods market search-and-matching (SaM) to model non-clearing goods markets. I conduct a horse-race between the different capacity utilisation channels using Bayesian estimation and capacity utilisation survey data. Models that include goods market SaM improve the data fit, while the capital utilisation and worker effort channels are rendered less important compared to the literature. It follows that TFP fluctuations increase for demand and goods market mismatch shocks, while they decrease for technology shocks. This pattern increases as goods market frictions increase and as prices become stickier. The paper shows the importance of non-clearing goods markets in explaining the difference between technology and TFP over the business cycle. |
| Keywords: | Bayesian estimation,capacity utilisation,non-clearing goods markets,search-and-matching,total factor productivity |
| JEL: | E22 E23 E3 J20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:92022&r= |
| By: | Davis, Steven J.; Haltiwanger, John C.; Handley, Kyle; Lerner, Joshua; Lipsius, Ben; Miranda, Javier |
| Abstract: | The effects of private equity buyouts on employment, productivity, and job reallocation vary tremendously with macroeconomic and credit conditions, across private equity groups, and by type of buyout. We reach this conclusion by examining the most extensive database of U.S. buyouts ever compiled, encompassing thousands of buyout targets from 1980 to 2013 and millions of control firms. Employment shrinks 13% over two years after buyouts of publicly listed firms - on average, and relative to control firms - but expands 13% after buyouts of privately held firms. Post-buyout productivity gains at target firms are large on average and much larger yet for deals executed amidst tight credit conditions. A post-buyout tightening of credit conditions or slowing of GDP growth curtails employment growth and intra-firm job reallocation at target firms. We also show that buyout effects differ across the private equity groups that sponsor buyouts, and these differences persist over time at the group level. Rapid upscaling in deal flow at the group level brings lower employment growth at target firms. |
| Keywords: | administrative data,business cycle,credit conditions,employment,private equity,productivity |
| JEL: | D24 G24 G32 G34 J23 J63 L25 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:102022&r= |
| By: | Szymańska, Elżbieta; Lukoszová, Xenie |
| Abstract: | The research aimed to identify changes in the level of liquidity and profitability of meat industry enterprises and determine the relationship between liquidity and profitability in this industry. The authors made a hypothesis that there is a positive relationship between the liquidity and profitability of meat enterprises, which means that along with the increase in financial liquidity the profitability of enterprises increased. The research used information from meat processing and preservation companies, except poultry, employing more than nine persons. The analysis covered companies that were obliged to submit financial statements to the National Court Register. In 2007, there were 467 such enterprises in Poland and 316 in 2018. The descriptive statistics, Pearson correlation coefficient, and linear regression analysis were used in the data analysis. The analyses show that the number of meat businesses in Poland is decreasing as a result of their consolidation and winding-up due to the difficult financial situation. The average current liquidity ratio of the enterprises analyzed between 2007 and 2018 remained at a satisfactory level from 1.054 to 1.49. The research shows a significant correlation between current and quick liquidity ratios and returns on assets and equity. The highest level of correlation occurred between the quick liquidity ratio and the asset profitability ratio. The profitability of meat enterprises in the long term is associated with maintaining financial liquidity. In turn, maintaining the ability to meet current obligations requires a rational management of profit and working capital. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, Farm Management |
| Date: | 2021–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:319814&r= |