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on Efficiency and Productivity |
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Issue of 2022‒08‒29
nineteen papers chosen by |
| By: | Lopez, Rigoberto A.; Dong, Xiao; Estruel, Luis Seoane |
| Keywords: | Productivity Analysis, Production Economics, Marketing |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322097&r= |
| By: | Nehring, Richard F.; Dimitri, Carolyn |
| Keywords: | Production Economics, Productivity Analysis, Community/Rural/Urban Development |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322179&r= |
| By: | Victor Ajayi (Energy Policy Research Group, Judge Business School, University of Cambridge); Michael Pollitt (Energy Policy Research Group, Judge Business School, University of Cambridge) |
| Keywords: | Total factor productivity, incentive regulation, corporate reorganisations, gas networks, data envelopment analysis |
| JEL: | D24 H23 L43 L94 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:023&r= |
| By: | Maxwell Tuuli; Ngo Van Long |
| Abstract: | Productivity dispersion across countries has led to several studies on the determinants of firm level productivity and the role of macroeconomic policies in determining productivity. In this paper, we investigate the effect of fiscal consolidation on firm level productivity in 12 advanced economies by combining an updated dataset of fiscal consolidation measures with firm level productivity. We find that fiscal consolidation (i.e., discretionary tax hikes and spending cuts), is detrimental to firm level productivity in advanced economies. We also find that high levels of fiscal consolidation are particularly harmful to firm level productivity compared to lower levels of fiscal consolidation. Furthermore, we find that tax based fiscal consolidation hinders firm level productivity more compared to spending based fiscal consolidation. This implies that the size and composition of fiscal consolidation matter in understanding the relationship between fiscal consolidation and firm level productivity. |
| Keywords: | Fiscal consolidation; Taxes; Spending; Total Factor Productivity; firm level productivity; fiscal consolidation matter; fiscal consolidation measure; productivity dispersion; effect of fiscal consolidation; Productivity; Financial sector development; Global |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/126&r= |
| By: | Robert J. Gordon; Hassan Sayed |
| Abstract: | The dismal decade of 2010-19 recorded the slowest productivity growth of any decade in U.S. history, only 1.1 percent per year in the business sector. Yet the pandemic appears to have created a resurgence in productivity growth with a 4.1 percent rate achieved in the four quarters of 2020. This paper provides a unified framework that explains productivity growth in both the pre-pandemic and pandemic-era U.S. economy. The key insight is that in their panicked reaction to the collapse of output in the 2008-09 recession, business firms overreacted with “excess layoffs,” adjusting hours to the output decline with a far higher elasticity than normal. Our regression analysis, which allows post-recession rehiring that gradually unwinds the excess layoffs, explains why productivity growth was countercyclical in 2009 and why it was so slow in 2010-16 as rehiring boosted hours growth. Post-sample simulations explain why productivity growth was so high in 2020 and why it fell to only 0.6 percent in the five quarters of 2021-22. The paper includes implications for the future long-term evolution of productivity growth in the business sector and total economy. A new data file on quarterly productivity levels and changes for 17 industries provides new perspectives for 2006-22 and particularly for the nine pandemic quarters of 2020-22. Positive pandemic-era productivity growth can be entirely explained by a surge in the performance of work-from-home service industries, while goods industries soared and then slumped, while contact services recorded strongly negative productivity growth throughout 2020-22. |
| JEL: | E22 E24 O4 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30267&r= |
| By: | Kim, KiYoon; Yoo, Do-il |
| Keywords: | Production Economics, Productivity Analysis, International Development |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322611&r= |
| By: | Fang, Ming; Jin, Songqing; Deininger, Klaus W. |
| Keywords: | Environmental Economics and Policy, Production Economics, Productivity Analysis |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322437&r= |
| By: | Kentaro Asai (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | This paper examines the employment and productivity effects of the working hour reform in Portugal that reduced the standard hours from 44h to 40h in 1996-7. Using the variation across establishments in the intensity of treatment, I find that the establishments that were more treated experienced lower post-reform employment growth, although to a modest degree. Despite of the large reduction in the labor hour input, there is no statistically significant negative effect on sales, leading to a large improvement in labor efficiency measured by sales per hour. However, these overall effects mask substantial heterogeneity in responses: establishments in capital intensive sectors reduced employment without decline on sales, while those in labor intensive sector rather attempted to maintain employment, but their sales were negatively affected. These results provide indirect evidence consistent with the theories that highlight the role of scale effects and capital substitution effects. |
| Keywords: | Working Hour,Labor Demand,Productivity,Labor Market Working Hour,Labor Market Imperfections |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03728157&r= |
| By: | Ko, Minkyong; Ramsey, Austin F. |
| Keywords: | Environmental Economics and Policy, Production Economics, Productivity Analysis |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322102&r= |
| By: | Tomoyuki Yagi (Bank of Japan); Kakuho Furukawa (Bank of Japan); Jouchi Nakajima (Bank of Japan) |
| Abstract: | Labor productivity is the source of economic growth. This paper shows that the growth rate of labor productivity in Japan has remained low since the collapse of the bubble economy in the early 1990s. We summarize the background and the issues involved in improving productivity based on previous research and additional analyses provided in this paper. We also analyze developments in labor productivity during the novel coronavirus infection (COVID-19) pandemic and discuss the issues involved in achieving sustainable growth in the post-COVID-19 era. Based on our literature review, the background to the recent stagnation in labor productivity can be summarized as follows. First, the pace of capital accumulation has generally slowed. Second, there are issues involved with the utilization of capital stock. While investment in research and development (R&D) has been increasing, it has not led to improvements in productivity. Third, Japan has issues with resource reallocation. By analyzing data on individual firms, we find that production resources are not being allocated efficiently as low-productivity firms remain in the market for a long time. These long-standing issues which Japan has faced became apparent once again under the pandemic. Specifically, the pace of capital accumulation is further reduced, and the efficiency of resource allocation has not improved. Meanwhile, increased utilization of IT capital, such as the expansion of working from home and online consumption, is a progress in improving productivity; however, such progress has been limited in comparison to that of other countries. To improve its labor productivity and attain sustainable economic growth in the future, it will be needed for Japan to further accelerate such progress and steadily resolve the various issues which it faces. |
| Keywords: | Productivity; Intangible assets; Efficiency of utilization; Reallocation; COVID-19 pandemic |
| JEL: | E20 E22 J24 O47 |
| Date: | 2022–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp22e10&r= |
| By: | Jeong, Hyunju; Suh, Dong Hee |
| Keywords: | Environmental Economics and Policy, Productivity Analysis, International Relations/Trade |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322122&r= |
| By: | Laura Abrardi; Elena Grinza; Allessandro Manello; Flavio Porta |
| Abstract: | We use survey data on Italian small- and medium-sized enterprises (SMEs) collected during the COVID-19 pandemic to explore the relationship between the adoption of work from home (WFH) practices and organizational performance. In so doing, we investigate the possible underlying mechanisms, including measures of labor productivity and workers’ concentration and motivation, the level of absenteeism, the organization of work through management by objectives (MBO), and the presence of coordination and communication costs. We obtain several results. First, we find a significantly enhanced capability of firms that adopted WFH during the pandemic to sustain the overall organizational performance, particularly when such work practice is used intensively. Second, increased labor productivity and workers’ concentration and motivation, decreased absenteeism, and a substantial rise in the adoption of MBO seem to be the main drivers behind the detected benefits related to WFH. Third, when WFH is used at medium levels of intensity, it is associated with augmented coordination and communication costs, which nonetheless do not appear to overcome the benefits associated with WFH. |
| Keywords: | Work from home (WFH); teleworking; agile working; smart working; organizational performance; labor productivity; management by objectives (MBO); COVID-19; small- and medium-sized enterprises (SMEs); survey data |
| JEL: | D23 D24 M54 |
| Date: | 2022–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/346683&r= |
| By: | Boufous, Sawssan; Wade, Tara |
| Keywords: | Production Economics, Productivity Analysis, Environmental Economics and Policy |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322590&r= |
| By: | Djontu, Bruno Legrand |
| Abstract: | This study aims at evaluating the determinants of trade in agricultural exports products of Cameroon, as well as the level of efficiency and potential of Cameroon with its trading partners. To achieve this goal, a stochastic frontier gravity model is estimated over the period 2000-2017 for a sample of 41 partners. Using the maximum likelihood method, the results show that Cameroon’s GDP, partner population, bilateral exchange rate and sharing of a common colonial history increase exports of agricultural products, unlike preferential trade agreements and Cameroon’s population. Likewise, the hypothesis of the existence of commercial inefficiency is validated. The estimation of the efficiency scores shows that around 76.6% of Cameroon's agricultural export potential remains untapped. These results underscore the importance of developing the agricultural sector and improving Cameroon's trade policies. |
| Keywords: | agricultural exports, gravity model, stochastic frontier, trade efficiency, export potential |
| JEL: | Q17 |
| Date: | 2022–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113959&r= |
| By: | Victor Ajayi (Energy Policy Research Group, Judge Business School, University of Cambridge); Michael Pollitt (Energy Policy Research Group, Judge Business School, University of Cambridge) |
| Keywords: | Green growth, net zero, circular economy, future energy scenarios, productivity |
| JEL: | D24 O44 Q53 Q54 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:024&r= |
| By: | Marwan-Al-Qays Bousmah (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale, CEPED - UMR_D 196 - Centre population et développement - IRD - Institut de Recherche pour le Développement - UPC - Université Paris Cité); Collins Iwuji (University of Sussex); Nonhlanhla Okesola; Joanna Orne-Gliemann (BPH - Bordeaux population health - UB - Université de Bordeaux - Institut de Santé Publique, d'Épidémiologie et de Développement (ISPED) - INSERM - Institut National de la Santé et de la Recherche Médicale); Deenan Pillay (UCL - University College of London [London]); Francois Dabis (BPH - Bordeaux population health - UB - Université de Bordeaux - Institut de Santé Publique, d'Épidémiologie et de Développement (ISPED) - INSERM - Institut National de la Santé et de la Recherche Médicale); Joseph Larmarange (CEPED - UMR_D 196 - Centre population et développement - IRD - Institut de Recherche pour le Développement - UPC - Université Paris Cité); Sylvie Boyer (SESSTIM - U1252 INSERM - Aix Marseille Univ - UMR 259 IRD - Sciences Economiques et Sociales de la Santé & Traitement de l'Information Médicale - IRD - Institut de Recherche pour le Développement - AMU - Aix Marseille Université - INSERM - Institut National de la Santé et de la Recherche Médicale) |
| Abstract: | Universal HIV testing is now recommended in generalised HIV epidemic settings. Although home-based HIV counselling and testing (HB-HCT) has been shown to be effective in achieving high levels of HIV status awareness, little is still known about the cost implications of universal and repeated HB-HCT. We estimated the costs of repeated HB-HCT and the scale economies that can be obtained when increasing the population coverage of the intervention. We used primary data from the ANRS 12249 Treatment as Prevention (TasP) trial in rural South Africa (2012-2016), whose testing component included six-monthly repeated HB-HCT. We relied on the dynamic system generalised method of moments (GMM) approach to produce unbiased short- and long-run estimates of economies of scale, using the number of contacts made by HIV counsellors for HB-HCT as the scale variable. We also estimated the mediating effect of the contact quality - measured as the proportion of HIV tests performed among all contacts eligible for an HIV test - on scale economies. The mean cost (standard deviation) of universal and repeated HB-HCT was $24.2 (13.7) per contact, $1694.3 (1527.8) per new HIV diagnosis, and $269.2 (279.0) per appropriate referral to HIV care. The GMM estimations revealed the presence of economies of scale, with a 1% increase in the number of contacts for HB-HCT leading to a 0.27% decrease in the mean cost. Our results also suggested a significant long-run relationship between mean cost and scale, with a 1% increase in the scale leading to a 0.36% decrease in mean cost in the long run. Overall, we showed that significant cost savings can be made from increasing population coverage. Nevertheless, there is a risk that this gain is made at the expense of quality: the higher the quality of HB-HCT activities, the lower the economies of scale. |
| Keywords: | AIDS/HIV,Prevention,Cost of care,Economies of scale,Interventions,Clinical trials,South Africa |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03701276&r= |
| By: | Ash, Elliott (ETH Zurich); Cai, David (ETH Zurich); Draca, Mirko (University of Warwick, CAGE); Liu, Shaoyu (Columbia University) |
| Abstract: | We study the impact of a large-scale scientist recruitment program – China’s Junior Thousand Talents Plan (青年千人计划) – on the productivity of recruited scholars and their local peers in Chinese host universities. Using a comprehensive dataset of published scientific articles, we estimate effects on quantity and quality in a matched difference-in-differences framework. We observe neutral direct productivity effects for participants over a 6-year post-period: an initial drop is followed by a fully offsetting recovery. However, the program participants collaborate at higher rates with more junior China-based co-authors at their host institutions. Looking to peers in the hosting department, we observe positive and rising productivity impacts for peer scholars, equivalent to approximately 0.6 of a publication per peer scholar in the long-run. Heterogeneity analysis and the absence of correlated resource effects point to the peer effect being rooted in a knowledge spillover mechanism. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1416&r= |
| By: | Lee, Yunkyung; Perrin, Richard K.; Fulginiti, Lilyan E. |
| Keywords: | Productivity Analysis, Production Economics, Marketing |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322392&r= |
| By: | Phoebe Koundouri; Nikitas Pittis (University of Piraeus, Greece); Angelos Plataniotis |
| Abstract: | Achieving climate neutrality, as dictated by international agreements such as the Paris Agreement, the United Nations Agenda 2030 and the European Green Deal, requires the conscription of all parts of society. The business world and, in particular, large enterprises have a leading role in this effort. Businesses can contribute to this effort by establishing a reporting and operating framework according to specific Environmental, Social and Governance (ESG) criteria. The interest of companies in the ESG framework has become more intense in the recent years, as they recognize that apart from an improved reputation, ESG criteria can add value to them and help them to become more effective in their functioning. In particular, large European companies are legally obligated by the Non-Financial Reporting Directive (NFRD-Directive 2014/95/EU) to disclose non-financial information on how they deal with social and environmental issues. In the literature, there are discussions on the extent to which a good ESG performance affects a company's profitability, valuation, capital efficiency and risk. The purpose of this paper is to examine empirically whether a relationship between good ESG performance and the good financial condition of companies can be documented. For a sample of the top 50 European companies in terms of ESG performance (STOXX Europe ESG Leaders 50 Index), covering a wide range of sectors, namely Automobiles, Consumer Products, Energy, Financial Services, Manufacturing, etc., we first reviewed their reportings to see which ESG framework they use to monitor their performance. Next, we examined whether there is a pattern of better financial performance compared to other large European corporations. Our results showed that such a connection seems to exist at least for some specific parameters, while for others, such a claim cannot be supported. |
| Keywords: | ESG, STOXX Europe, financial performance, capital structure, profitability, valuation |
| Date: | 2022–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2218&r= |