nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2023‒05‒01
twelve papers chosen by

  1. Bayesian Artificial Neural Networks for Frontier Efficiency Analysis By Valentin Zelenyuk; Valentyn Panchenko
  2. Environmentally Adjusted Analysis of Agricultural Efficiency: A Systematic Literature Review of Frontier Approaches By Staniszewski, Jakub; Matuszczak, Anna
  3. Land Reform and Productivity: Evidence from the Dissolution of the French Monasteries By Arnaud Deseau
  4. Resource Reallocation across Firms during the COVID-19 Pandemic: Analysis of productivity dynamics using firm-level micro data (Japanese) By IKEUCHI Kenta; KIM Young Gak; KWON Hyeog Ug; FUKAO Kyoji
  5. On the non-identification of revenue production functions By van Dijcke, David
  6. Economic Situations of Lagrange Multiplier When Costs of Various Inputs Increase for Nonlinear Budget Constraint By Mohajan, Devajit; Mohajan, Haradhan
  7. The determinants of the port logistics performance: Case of the port of Casablanca By Kaoutar Benkhedda; Saliha El Hakmi; Asmae Bennaceur
  8. Technological Uncertainty and Catch-Up Patterns: Insights of Four Chinese Manufacturing Sectors By Lu Xu; Jie Xiong; Jie Yan; Richard Soparnot; Zhe Yuan
  9. Potential Growth: A Global Database By Sinem Kilic Celik; M. Ayhan Kose; Franziska Ohnsorge; F. Ulrich Ruch
  10. The effects of inter-municipal cooperation and central grant allocation on the size of the French local public sector By Touria Jaaidane; Sophie Larribeau
  11. Revenue Performance Assessment of Indian GST. By Mukherjee, Sacchidananda
  12. The role of localised, recombinant and exogenous technological change in European regions By T.E. Uberti; M.A. Maggioni; E. Marrocu; S. Usai

  1. By: Valentin Zelenyuk (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Valentyn Panchenko (School of Economics, University of New South Wales, Australia;)
    Abstract: We present a cohesive generalized framework for an aggregation of the Nerlovian profit indicators and of the directional distance functions, frequently used in productivity and efficiency analysis in operations research and econometrics (e.g., via data envelopment analysis or stochastic frontier analysis). Our theoretical framework allows for greater flexibility than previous approaches, and embraces many other approaches as special cases. In the proposed aggregation scheme, the aggregation weights are mathematically derived from assumptions made about the optimization behavior and about the chosen directions of measurement. We also discuss various interesting special cases of popular directions, including the case of Farrelltype effiiency.
    Keywords: Efficiency; Productivity; Aggregation; Data Envelopment Analysis
    JEL: D24 O4
    Date: 2023–01
  2. By: Staniszewski, Jakub; Matuszczak, Anna
    Abstract: The paper reviews 200 papers regarding environmentally adjusted analysis of agricultural efficiency found in the Scopus database. Based on the PRISMA method the scope of the review was limited to papers where efficiency is assessed with data envelopment analysis (DEA) or stochastic frontier analysis (SFA). The aim of this paper is to identify how efficiency analysis can be enhanced to take into account environmental aspects of agricultural production and indicate the research trends and gaps. Regarding the trends, most of the studies refer to agriculture in Europe, with a noticeable increasing trend in Asia. The production directions under research mainly include crops or milk production, usually in the farm scale. It can also be observed that a typical economic efficiency model is developed to include new environmentally detrimental inputs or undesirable outputs, such as fertilizing, climate impact, crop protection, water footprint, and energy usage. The most common determinants were farmers features, scale of production, intensification, agricultural practices, quality of the production environment, macroeconomic environment, specialization, environmental practices, and farm features. The following research gaps were identified. The case studies of Africa and North America are limited, like those at the field and local levels as well as those related to horticultural and animal production other than milk production. The SFA approaches are underdeveloped in comparison with DEA, like approaches other than additional inputs/outputs. In particular, the by-production approach seems promising. Limited attention has been paid to soil condition, biodiversity, waste generation in agriculture, and positive externalities provided by the agriculture. An interesting and less investigated area in terms of performance determinants remain farmers’ behavioral features.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy
    Date: 2023–03–30
  3. By: Arnaud Deseau (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: This article uses the confiscation and auction of monastic properties during the French Revolution to assess the effects of land reallocation on agricultural productivity. To proxy for monastic landholdings, I construct a novel dataset using the annual income and location of more than 1, 500 French monasteries in 1768. I perform several cross-checking analyses and demonstrate the validity of the data as a proxy for monastic landholdings both at the monastery and arrondissement levels. I show that arrondissements with greater land reallocation experienced higher levels of agricultural productivity in the mid-19th century. I trace these increases in productivity to the creation of larger and less fragmented farms, leading to an increase in mechanization and the substitution of family labor with a hired specialized labor force.
    Keywords: Land Reform, Productivity, French Revolution, Monasteries, Farm Size
    JEL: O13 O40 Q15 N53
    Date: 2023–03–16
  4. By: IKEUCHI Kenta; KIM Young Gak; KWON Hyeog Ug; FUKAO Kyoji
    Abstract: During the COVID-19 pandemic, a substantial shift in demand occurred in the economy, including a decrease in demand for some non-manufacturing industries such as retail, transportation, and restaurants and accommodation services, a downturn in international trade due to the global spread of infections, and an increase in demand for information and communication services due to remote working and other factors. In countries with high labor mobility, such as the United States, active reallocation of resources across industries and firms during and after the pandemic could be observed. On the other hand, in Japan, the reallocation of resources across firms in response to demand shifts may have been sluggish due to the difficulty of laying off regular employees (especially in large firms) and the government’s efforts to maintain employment and prevent bankruptcies through employment adjustment subsidies and special COVID-19 loans. Using firm-level financial data from Tokyo Shoko Research, we examine the reallocation of resources across firms during the COVID-19 pandemic in private-sector production activities in Japan by focusing on developments in productivity dynamics and the share of zombie firms. Our analysis of total factor productivity (TFP) dynamics shows that in 2018–2021, probably due to rigid employment practices, there was a large negative within-firm effect among large firms, and especially large firms operating in the non-manufacturing sector saw a substantial decline in TFP. In contrast, small and medium-sized enterprises (SMEs) experienced increases in TFP during this period due to positive reallocation effects. Especially SMEs engaged in manufacturing saw an acceleration in TFP growth. This suggests that the market selection mechanism functioned mainly for SMEs. Meanwhile, the share of zombie firms, defined as firms with an interest coverage ratio of less than 1 for several years, peaked in 2011 and then gradually declined. Although there has been a small increase since the start of the pandemic in 2020, the increase in 2020–2021 was not particularly pronounced compared to the rapid increase from 2009 to 2011.
    Date: 2023–04
  5. By: van Dijcke, David (University of Michigan)
    Abstract: It is well‑known that production functions are potentially misspecified when revenue is used as a proxy for output. In this paper, I formalise and strengthen this common knowledge by showing that neither the production function nor Hicks‑neutral productivity can be identified when revenue is used as a proxy for physical output. This result holds under the standard assumptions used in the literature for a large class of production functions, including all commonly used parametric forms. Among the prevalent approaches to address this issue, I show that only those which impose assumptions on the underlying demand system can possibly identify the production function.
    Keywords: Production function estimation; revenue production functions; productivity; market power; identification
    JEL: C01 D02 D04 E02 L10
    Date: 2023–02–17
  6. By: Mohajan, Devajit; Mohajan, Haradhan
    Abstract: An industry always expects to survive in profit maximization atmosphere. To develop profit maximization strategy it must follow scientific methods in every step of production and distribution. Only proper decisions can propel the industry smoothly in sustainable way. This study attempts to discuss economic effects of Lagrange multiplier when per unit costs of various inputs increase. In this paper the method of Lagrange multiplier is applied to represent higher dimensional unconstrained problem from the lower dimensional constrained problem. Cobb-Douglas production function, 6×6 bordered Hessian matrix, and 6×6 Jacobian are operated here to provide economic predictions appropriately. In the study profit maximization is considered with subject to the nonlinear budget constraint.
    Keywords: Profit maximization, Lagrange multiplier, nonlinear budget constraint
    JEL: B41 C3 C41 C51 C61 C67 G1 I31
    Date: 2023–02–10
  7. By: Kaoutar Benkhedda (ENCGO - Ecole Nationale de Commerce et de Gestion, ENCG - Ecole Nationale de Commerce et de Gestion - UH2MC - Université Hassan II [Casablanca]); Saliha El Hakmi; Asmae Bennaceur
    Abstract: In the current context, with the opening of international markets and international trade, all companies must face the challenges of improving their tools, methods, processes, in particular improving the quality of their services and ensuring the proper operation of the supply chain in order to achieve a high level of organizational and interorganizational performance. In this sense, ports play an important role in international trade and are a key factor in the competitiveness of the port logistics chain. In this context, productivity and performance are the main concerns of all port actors. However, the port sector is characterized by the complexity of operations and the diversity of port functions, especially because of the multiplicity and dispersion of stakeholders and the divergence of their priorities and interests. This research develops an exploratory qualitative study on the performance of port logistics in the specific Moroccan context. To do this, and in order to identify the determinants of port logistics performance, a review of previous work on port logistics performance was carried out. Following this, a comparative analysis was undertaken to identify the differences and similarities between the factors considered determinants of port performance as they exist in the literature and the statements made by the respondents. The results support the major role of the quality of service, the delay, the assurance of the goods, the good coordination and the cost. However, infrastructure and new technologies remain an essential criterion for the smooth running of the activity.
    Abstract: Dans le contexte actuel, avec l'ouverture des marchés internationaux et le commerce international, toutes les entreprises doivent faire face aux défis d'amélioration de leurs outils, leurs méthodes, leurs processus, notamment faire progresser la qualité de leurs services et assurer le bon fonctionnement de la chaîne logistique afin d'atteindre un niveau élevé de performance organisationnelle et interorganisationnelle. Dans ce sens, les ports jouent un rôle important dans le commerce international et constituent un facteur clé de la compétitivité de la chaine logistique portuaire. Dans ce contexte, la productivité et la performance sont les principales préoccupations de tous les acteurs portuaires. Cependant, le secteur portuaire se caractérise par la complexité des opérations et la diversité des fonctions portuaires, surtout, à cause de la multiplicité et la dispersion des parties prenantes et la divergence de leurs priorités et intérêts. Cette recherche développe une étude qualitative exploratoire sur la performance de la logistique portuaire dans le contexte spécifique marocain. Pour ce faire, et afin d'identifier les déterminants de la performance logistique portuaire, un dépouillement des travaux antérieurs sur la performance logistique portuaire a été effectué. Suite à quoi une analyse comparative a été engagée pour repérer les différences et similitudes entre les facteurs considérés comme déterminants de la performance portuaire telles qu'elles existent dans la littérature et les propos avancés par les enquêtés. Les résultats soutiennent le rôle majeur de la qualité de service, le délai, l'assurance de la marchandise, la bonne coordination et le coût. Toutefois, l'infrastructure et les nouvelles technologies demeurent néanmoins un critère essentiel pour le bon déroulement de l'activité.
    Date: 2023–01–31
  8. By: Lu Xu (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne); Jie Xiong (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Jie Yan (EESC-GEM Grenoble Ecole de Management); Richard Soparnot (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne); Zhe Yuan (CentraleSupélec)
    Date: 2023–01–09
  9. By: Sinem Kilic Celik; M. Ayhan Kose; Franziska Ohnsorge; F. Ulrich Ruch
    Abstract: Potential growth—the rate of expansion an economy can sustain at full capacity and employment—is a critical driver of development progress. It is also a major input in the formulation of fiscal and monetary policies over the business cycle. This paper introduces the most comprehensive database to date, covering the nine most commonly used measures of potential growth for up to 173 countries over 1981-2021. Based on this database, the paper presents three findings. First, all measures of global potential growth show a steady and widespread decline over the past decade, with all the fundamental drivers of growth losing momentum over time. In 2011-21, potential growth was below its 2000-10 average in nearly all advanced economies and roughly 60 percent of emerging market and developing economies. Second, adverse events, such as the global financial crisis and the COVID-19 pandemic, contributed to the decline. At the country-level also, national recessions lowered potential growth even five years after their onset. Third, the persistent impact of recessions on potential growth operated through weaker growth of investment, employment, and productivity.
    Keywords: production function, filters, growth expectations, developing economies
    JEL: E30 E32 E37 O20
    Date: 2023–04
  10. By: Touria Jaaidane (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, CRED - Centre de Recherche en Economie et Droit - Université Paris-Panthéon-Assas); Sophie Larribeau (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The analysis of French municipalities' public personnel expenditures allows us to study the issue of the size of the local public sector. We concentrate on two paths that French authorities have followed to limit it, i.e., the promotion of inter-municipal cooperation (IMC) and the cut in grants received by municipalities. Our objective is to evaluate their respective role in the evolution of public personnel expenditures at the municipal level, in a context where local politics comes into play. We consider a large panel dataset of municipalities embedded in IMC structures between 2011 and 2018. Our main results, obtained using an original identification strategy, are threefold. We first find evidence that a substitution effect between municipal and IMC personnel expenditures is at work. Second, we find a partisan distorsion through the grant allocation: despite its formula-based definition, aligned and unaligned municipalities are treated differently by the central government. Third, we show that cuts in grants lead to cuts in municipalities' public wage bills, while partisanship hinders such cuts.
    Date: 2023–01
  11. By: Mukherjee, Sacchidananda (National Institute of Public Finance and Policy)
    Abstract: By comparing comparable revenue streams of pre- and post-GST periods, in this paper we assess the revenue performance of GST in India for the period 2012-13 to 2022-23. Sustaining revenue streams of the Union and State governments (in terms of percentage share in nominal Gross Domestic Product or GDP) between the pre- and a post-GST period is important for sustainable Public Finance Management. We observe that post-GST tax buoyancy in the GST regime has improved for the Union government as well as in overall GST collection. However, average tax buoyancy of State portion of GST has not improved yet. GST-to-GDP ratio of the Union as well as state governments not yet improved during post-GST period as compared to equivalent share of respective revenue streams in GDP during the pre-GST period. Based on available information, we estimate C-efficiency ratio (or collection efficiency), Effective Tax Rates, Compliance Gap and Policy Gap of GST for the period Q2:2017-18 to Q3:2022-23. We find that average C-efficiency of GST is 0.54 (or 54 %) which is in line with available evidences from developing Asian countries. Average ETR has gone up from 10.91 per cent in 2020-21 to 12.21 per cent in 2021-22 and 12.56 per cent upto Q3:2022-23 of 2022-23. The share of policy gap in C-efficiency is higher than compliance gap which is in line with available evidences from EU and OECD countries.
    Keywords: Revenue performance assessment ; Goods and Services Tax (GST) ; C-efficiency ; Compliance Gap ; Policy Gap ; Effective Tax Rate (ETR) ; India
    JEL: H20 E62 H26
    Date: 2023–04
  12. By: T.E. Uberti; M.A. Maggioni; E. Marrocu; S. Usai
    Abstract: How do regions develop and evolve along their productive and technological path is a central question. Within an evolutionary perspective, a given region is likely to develop new technologies closer to its pre-existing specialization. We adopt the approach of Hidalgo et al. (2007) to map the regional European technology/knowledge space to investigate the pattern and the evolution of regional specialisation in the most innovative EU countries. These dynamics depend on the interaction of three factors - (i) localised technological change, (ii) endogenous processes of knowledge recombination, and (iii) exogenous technological paradigm shifts while accounting for spatial and technological spillovers. Our paper maps the technological trajectories of 198 EU regions over the period 1986-2010 by using data on 121 patent sectors at the NUTS2 level for the 11 most innovative European countries, plus Switzerland and Norway. The results show that regional technological specialization is mainly shaped by localised technological change and exogenous technological paradigm shifts, whereas recombinant innovation contributes to a lower extent and that these effects largely depends on the increasing, decreasing or stable regional dynamics.
    Keywords: Technology/knowledge space;spatial ordered models.;recombinant innovation;patent analysis;localised technology change;evolutionary economic geography;european regions
    Date: 2023

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