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on Efficiency and Productivity |
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Issue of 2023‒06‒19
29 papers chosen by |
| By: | Valentin Zelenyuk (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Shirong Zhao (School of Finance, Dongbei University of Finance and Economics, Dalian, Liaoning 116025) |
| Abstract: | Various methods recently have been proposed to further improve the finite sample performance of the developed central limit theorems (CLTs) for the simple mean and aggregate efficiency estimated via non-parametric frontier efficiency methods. We thoroughly investigate whether these methods are also effective to improve the finite sample performance for the recently developed CLTs for the simple mean and aggregate Malmquist Productivity Indices (MPIs). The extensive Monte-Carlo experiments confirmed that the method from Simar et al. (2023a) is useful for the simple mean and aggregate MPI in relatively small sample sizes (e.g., up to around 50, perhaps 100) and especially for large dimensions. Interestingly, we find that the better performance of the data sharpening method from Nguyen et al. (2022) observed in the context of efficiency is not obvious in the context of productivity. Finally, we use one well-known empirical data set to illustrate the differences across the existing methods to guide the practitioners. |
| Keywords: | Malmquist Productivity Index, Non-parametric Efficiency Estimators, Data Envelopment Analysis, Inference |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:186&r=eff |
| By: | Singh, S.P.; Sajwan, Priya; Sajwan, Komal |
| Abstract: | This paper analyses the technical efficiency of wheat farms operating under organic and conventional farming systems. The study is based on a primary survey of 579 farms (294 organic and 285 conventional) conducted in 2021 in two districts located in the Middle Ganga River Basin, India. Technical, managerial, and scale efficiencies of individual farms are estimated by applying Data Envelopment Analysis (DEA). The per hectare value of wheat production is taken as an output variable, and values of seeds, human labour, machine cost, plant nutrients, farm yard manure (FYM), plant protection, and irrigation charges are considered input variables for estimating the farm-level efficiencies. The post-DEA analysis is conducted using the Tobit regression to determine the efficiency factors. The results show that technical efficiency is significantly higher in conventional than organic farming systems due to a higher gap in scale efficiency than managerial efficiency. Further, 9.8% of conventional and only 1.0% of organic farms operate at the Most Productive Scale Size (MPSS), and 99% of organic and 81% of conventional farms at IRS. Organic farms perform well in managerial efficiency, but their technical efficiency is lower than conventional farms, mainly due to their relatively lower scale size. The paper suggests that technical efficiency in organic wheat farms can be increased by upscaling the farm size by incentivizing group/collective farming in clusters. |
| Keywords: | Productivity Analysis, Farm Management |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334558&r=eff |
| By: | Hiroyuki Kasahara; Paul Schrimpf; Michio Suzuki |
| Abstract: | This paper examines the nonparametric identifiability of production functions, considering firm heterogeneity beyond Hicks-neutral technology terms. We propose a finite mixture model to account for unobserved heterogeneity in production technology and productivity growth processes. Our analysis demonstrates that the production function for each latent type can be nonparametrically identified using four periods of panel data, relying on assumptions similar to those employed in existing literature on production function and panel data identification. By analyzing Japanese plant-level panel data, we uncover significant disparities in estimated input elasticities and productivity growth processes among latent types within narrowly defined industries. We further show that neglecting unobserved heterogeneity in input elasticities may lead to substantial and systematic bias in the estimation of productivity growth. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:toh:tupdaa:38&r=eff |
| By: | Hälbig, Mirja; Mertens, Matthias; Müller, Steffen |
| Abstract: | We study the productivity effect of the German national minimum wage by applying administrative firm data. At the firm level, we confirm positive effects on wages and negative employment effects and document higher productivity even net of output price increases. We find higher wages but no employment effects at the level of aggregate industry × region cells. The minimum wage increased aggregate productivity in manufacturing. We do not find that employment reallocation across firms contributed to these aggregate productivity gains, nor do we find improvements in allocative efficiency. Instead, the productivity gains from the minimum wage result from within-firm productivity improvements only. |
| Keywords: | minimum wage, productivity, reallocation |
| JEL: | D24 J31 L11 L25 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:82023&r=eff |
| By: | Camilla Mastromarco; Laura Serlenga; Yongcheol Shin |
| Abstract: | We develop a unified stochastic frontier model which controls for the local spatial correlation and the global factor dependence as well as parameter heterogeneity, simultaneously. We then propose the regional productivity network analysis to examine the diffusion impacts of the capital intensity on the labour productivity in the EU. We apply the proposed approach to the dataset consisting of 202 regions in the EU15 countries over 1980-2019, and convincingly unveil that the technological shock diffuses from efficient regions operating on or near the frontier to inefficient regions. This suggests that policies to enhance domestic absorption capacity appear better suited to net receivers of technological shocks whilst policies to attract more R&D investments are appropriate to their transmitters. In this regard we stress the importance of investing European funds in peripheral regions to address regional inequality and polarisation. |
| Keywords: | spatial stochastic frontier model with factors and heterogeneity, CCEX-IV estimator, regional productivity network analysis in the EU, efficiency clusters |
| JEL: | C13 C33 D24 O47 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10404&r=eff |
| By: | Valentin Zelenyuk (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia); Zhichao Wang (School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia) |
| Abstract: | Estimation of (in)efficiency became a popular practice that witnessed applications in virtually any sector of the economy over the last few decades. Many different models were deployed for such endeavors, with Stochastic Frontier Analysis (SFA) models dominating the econometric literature. Among the most popular variants of SFA are Aigner et al. (1977), which launched the literature, and Kumbhakar et al. (1991), which pioneered the branch taking account of the (in)efficiency term via the so-called environmental variables or determinants of inefficiency. Focusing on these two prominent approaches in SFA, the goal of this article is to try to understand the production inefficiency of public hospitals in Queensland. While doing so, we run into a known yet often overlooked phenomenon, where possible dramatic differences (and consequently very different policy implications) can be derived from different models, even within one paradigm of SFA models. This emphasizes the importance of exploring many alternative models, and scrutinizing their assumptions, before drawing policy implications, especially when such implications may substantially affect people’s lives, as is the case in the hospital sector. |
| Keywords: | Hospital inefficiency, stochastic frontier, environmental variables, Queensland |
| JEL: | C14 C61 D24 I11 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:187&r=eff |
| By: | Benatti, Nicola; Groiss, Martin; Kelly, Petra; Lopez-Garcia, Paloma |
| Abstract: | This paper analyses the impact of changes in environmental regulations on productivity growth at country- and firm-level. We exploit several data sources and the environmen-tal policy stringency index, to evaluate the Porter hypothesis, according to which firms’ productivity can benefit from more stringent environmental policies. By using panel local projections, we estimate the regulatory impact over a five-year horizon. The identification of causal impacts of regulatory changes is achieved by the estimation of firms’ CO2 emissions via a machine learning algorithm. At country- and firm-level, policy tightening affects high-polluters’ productivity negatively and stronger than their less-polluting peers. However, among high-polluting firms, large ones experience positive total factor productivity growth due to easier access to finance and greater innovativeness. Hence, we do not find support for the Porter hypothesis in general. However for technology support policies and firms with the required resources, policy tightening can enhance productivity. JEL Classification: O44, Q52, Q58 |
| Keywords: | emissions, environmental regulation, euro area, Porter hypothesis, productivity |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232820&r=eff |
| By: | Simar, Léopold (Université catholique de Louvain, LIDAM/ISBA, Belgium); Zelenyuk, Valentin; Zhao, Shirong |
| Abstract: | We expand the recently developed framework for the inference for aggregate efficiency, by extending the existing theory and providing guidelines for practitioners. In particular, we develop the central limit theorems (CLTs) for aggregate input-oriented efficiency, analogous to the output-oriented framework established by Simar and Zelenyuk (2018). To further improve the finite sample performance of the developed CLTs, we propose a simple yet easy to implement method through using the bias- corrected individual efficiency estimate to improve the variance estimator. The extensive Monte-Carlo experiments confirmed the developed CLTs for aggregate input- oriented efficiency and also confirmed the better performance of our proposed method in the finite sample sizes. Finally, we use two well-known empirical data sets to illustrate the differences between all the existing methods to facilitate the use by practitioners. |
| Keywords: | Efficiency ; Non-parametric Efficiency Estimators ; Data Envelopment Analysis ; Free Disposal Hull ; Aggregate Efficiency |
| JEL: | C1 C3 |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:aiz:louvad:2023016&r=eff |
| By: | Lena Abou El-Komboz (ifo Institute, LMU Munich); Thomas Fackler (ifo Institute, LMU Munich, CESifo, Laboratory for Innovation Science at Harvard) |
| Abstract: | Software engineering is a field with strong geographic concentration, with Silicon Valley as the epitome of a tech cluster. Yet, most studies on the productivity effects of agglomerations measure innovation with patent data, thus capturing only a fraction of the industry's activity. With data from the open source platform GitHub, our study contributes an alternative proxy for productivity, complementing the literature by covering a broad range of software engineering. With user activity data covering the years 2015 to 2021, we relate cluster size to an individual's productivity. Our findings suggest that physical proximity to a large number of other knowledge workers in the same field leads to spillovers, increasing productivity considerably. In further analyses, we confirm the causal relationship with an IV approach and study heterogeneities by cluster size, initial productivity and project characteristics. |
| Keywords: | agglomeration effects; knowledge spillovers; open source; online collaboration; |
| JEL: | D62 J24 O33 O36 R32 |
| Date: | 2023–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:399&r=eff |
| By: | Mr. Javier Kapsoli; Ms. Tewodaj Mogues; Ms. Genevieve Verdier |
| Abstract: | With limited financing options, increasing investment efficiency will be a critical avenue to building infrastructure for many countries, particularly in the context of post-pandemic recovery and rising debt emanating from higher energy costs and other pressures. Estimating investment efficiency, however, presents many methodological pitfalls. Using various methods—–stochastic frontier analysis, data envelopment analysis (DEA), and bootstrapped DEA—this paper estimates efficiency scores for a wide range of countries employing metrics of infrastructure quantity and utilization. We find that efficiency scores are relatively robust across methodologies and data used. A considerable efficiency gap exists: Removing all inefficiencies could increase infrastructure output by 55 percent overall, when averaging across 12 estimation approaches—in particular, by 45 percent for advanced economies, 54 percent for emerging countries, and 65 percent for low income countries. Infrastructure output would increase by a still-sizeable 30 percent if instead of eliminating all efficiency, countries achieved the efficiency level of their income group’s 90th percentile. |
| Keywords: | public investment; efficiency; infrastructure; benchmarking |
| Date: | 2023–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/101&r=eff |
| By: | Singh, Piyush Kumar; Dey, Shiladitya; Pal, Anirban |
| Abstract: | The study assesses the resource use efficiency of smallholder paddy farmers with/without considering undesirable outputs through the mobile-based application. Further, the study performs an impact assessment of digital recommendations on farmers' paddy yield improvement. A mobile app-based questionnaire was used to collect data from 153 paddy farmers in eastern India. The study employed Data Envelopment Analysis (DEA) to identify the farmers' resource use efficiency with/without undesirable output. We found lower farm eco-efficiency scores with undesirable output in the model compared to the case of not considering the undesirable output analysis. Results also showed that farmers are over-utilizing fertilizers, farming machinery, and labor in farming, which needs to be reduced to the recommended optimal level. Finally, using the Propensity Score Matching (PSM), we observed that the farmers achieved better paddy yield, i.e., an additional 0.6t/ha paddy, due to the adaptation of mobile-based recommendations. Subsequently, we used probit modeling to estimate the critical factors for adopting mobile-based services. Results show that farmers’ education level, farm experience, social capital, and market information play a significant role in mobile-app-based recommendation adoption. This study supports that farmers need to be suggested to use digital advisory services, and state/central policies may be aligned towards strengthening farmers' capacities for applying digital services in the farming system. |
| Keywords: | Resource /Energy Economics and Policy, Environmental Economics and Policy |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334522&r=eff |
| By: | Andrew J. Fieldhouse; Karel Mertens |
| Abstract: | We estimate the causal impact of government-funded R&D on business-sector productivity growth. Identification is based on a novel narrative classification of all significant postwar changes in appropriations for R&D funded by five major federal agencies. Using long-horizon local projections and the narrative measures, we find that an increase in appropriations for nondefense R&D leads to increases in various measures of innovative activity, and higher productivity in the long run. We structurally estimate the production function elasticity of nondefense government R&D capital using the SP-IV methodology of Lewis and Mertens (2023), and obtain implied returns of 150 to 300 percent over the postwar period. The estimates indicate that government-funded R&D accounts for about one quarter of business-sector TFP growth since WWII, and generally point to substantial underfunding of nondefense R&D. |
| Keywords: | government; R&D; productivity; growth; narrative analysis |
| JEL: | E62 O38 O47 |
| Date: | 2023–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:96171&r=eff |
| By: | Sidhoum, Amer Ait; Mennig, Philipp; Frick, Fabian |
| Abstract: | This study offers a novel empirical application for assessing the impact of agri-environment schemes (AES) on the performance of farms. The existing evidence about the environmental and economic impact of these schemes is still limited. Therefore, our objective is to contribute to the literature on the impact evaluation of AES by considering three important aspects in our empirical analysis. First, the performance of farms is proxied by an indicator that incorporates environmental externalities into production activities. Second, our empirical analysis focuses on a sample of Bavarian dairy farms covering the period 2013-2018, thus, we can evaluate the effectiveness of Europe’s agri-environmental schemes during the latest programming period. Finally, in an effort to increase robustness, we employ an improved version of the MalmquistLuenberger productivity index, which enables us to get around some of the shortcomings of the original index. The obtained results suggest that agri-environment payments have a limited effect on improving farm-level green productivity. |
| Keywords: | Environmental Economics and Policy, Agricultural and Food Policy |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334513&r=eff |
| By: | Gall, Thomas (University of Southampton); Hu, Xiaocheng (University of Exeter); Vlassopoulos, Michael (University of Southampton) |
| Abstract: | In teamwork settings, providing effective leadership can be challenging for team leaders due to multitasking and the difficulty in measuring and rewarding leadership input. These challenges might lead to underprovision of leadership activities, which can ultimately impede the productivity of the team. To address this problem, we conduct a field experiment at a manufacturing firm, introducing a relative subjective performance evaluation of team leaders' leadership activities by their managers, coupled with bonuses based on their leadership rank among all leaders. Our intervention increased worker productivity by approximately 7%, while leaving team leaders' productivity unchanged, and was profitable for the firm. During the intervention, we observe a positive correlation between the evaluations of team leaders and the productivity of team members, suggesting that the subjective evaluation indeed increased leadership activities and thus productivity. |
| Keywords: | multitasking, subjective evaluation, teamwork, incentive schemes, productivity, leadership |
| JEL: | J24 J33 M52 C93 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16123&r=eff |
| By: | James, Kevin R.; Kotak, Akshay; Tsomocos, Dimitri |
| Abstract: | Innovativity - an economy's ability to produce the innovations that drive total factor productivity (TFP) growth - requires both ideas and the ability to process those ideas into new products and/or techniques. We model innovativity as a function of endogenous idea processing capability subject to an exogenous idea supply constraint and derive an empirical measure of innovativity that is independent of the TFP data itself. Using exogenous shocks and theoretical restrictions, we establish that: i) innovativity predicts the evolution of average TFP growth; ii) idea processing capability is the binding constraint on innovativity; and iii) average TFP growth declined after 1970 due to a constraints on idea processing capability, not idea supply. |
| Keywords: | innovation; financial market effectiveness; endogenous growth; total factor productivity |
| JEL: | O47 O16 O51 O31 |
| Date: | 2022–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118848&r=eff |
| By: | Shinya Kotera; Ms. TengTeng Xu |
| Abstract: | This paper analyzes the drivers of India’s growth in the past five decades and considers baseline and upside scenarios of India’s medium-term potential growth. Using a production function approach, the paper assesses the impact of the pandemic on the key factors of production and therefore its impact on medium-term growth. Successful implementation of wide-ranging structural reforms could help support productivity and potential growth over the medium term. |
| Keywords: | India; Potential Growth; Labor Markets; Capital; Productivity; Pandemic; Production Function Approach; Structural Reforms.; upside scenario; TengTeng xu; impact of the pandemic; growth rate; Total factor productivity; COVID-19; Human capital; Global |
| Date: | 2023–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/082&r=eff |
| By: | Yusuff, Olanrewaju; Olasehinde, Noah |
| Abstract: | The study empirically investigated the effect of capital structure on firm performance among agro-allied firms listed on the Nigerian Stock Exchange from 2003 to 2017. Pooled OLS, random effect and fixed effect regressions were used to analyse the data. Performance was measured by return on investment, return on assets and earnings per share while capital structure was captured by leverage and equity finance. Equity finance was found to have a significant effect on returns on investment and assets while leverage impacted earnings per share. Also, firms’ growth and age were positively related to performance while size had an inverse relationship. Therefore, firms should adopt an efficient equity-debt ratio that significantly improves performance over a specific production period. |
| Date: | 2022–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:wczhf&r=eff |
| By: | Leonardo Becchetti (CEIS & DEF, University of Rome "Tor Vergata"); Sara Mancini (University of Rome "Tor Vergata"); Nazaria Solferino (Università della Calabria) |
| Abstract: | Based on results from the different fields of the game theoretic literature on strategic interactions and social dilemmas, gift exchange and procedural utility, we argue that corporate social responsibility and relational skills i) with other firms; ii) between employers and workers iii) among workers and iv) with stakeholders are associated to positive effects on productivity. We test our research hypothesis in a comparative perspective on small, medium and large sized Italian firms. We find that size matters when investigating the impact of relational skills on added value per worker after controlling for relevant concurring factors. The identified significant skill related components are: i) corporate policies considering strategic workers’ wellbeing; ii) team working attitudes considered as priority soft skills when hiring workers; iii) initiatives in favour of the productive network operating in the same local area; iv) involvement of stakeholders in CSR projects. Our findings show that the fourth component (stakeholder involvement) is positive and significant for all (small, medium and large) size classes, while the first (workers wellbeing) for small and medium firms, the second (team working) applies mainly to medium firms, and the third (initiative for the local productive network) to medium and large firms. Instrumental variable estimates on the relational skill principal component suggest that a causality link exists beyond these significant correlations. Our conclusion is that scale has an inverse U-shaped effect on the impact of team skills, weakens the impact of gift exchange mechanisms, while it reinforces those of investment in the local productive environment on added value per worker |
| Keywords: | social dilemma, gift exchange, procedural utility, corporate social responsibility, corporate size |
| Date: | 2023–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:557&r=eff |
| By: | Andres, Christian; Bazhutov, Dmitry; Cumming, Douglas J.; Limbach, Peter |
| Abstract: | Speculative news on corporate takeovers may hurt productivity because uncertainty and threat of job loss cause anxiety, distraction, and reduced collaboration and morale among employees and managers. Using a panel of OECD-headquartered firms, we show that firm productivity temporarily declines upon announcements of speculative takeover rumors that do not materialize. This productivity dip is more pronounced for targets and for firms in countries with weaker employee rights and less long-term orientation. Abnormal stock returns mirror these results. The evidence fosters our understanding of potential real effects of speculative financial news and the costs of takeover threats. |
| Keywords: | Distraction, Employee commitment, Employee rights, Fear of job loss, Productivity, Shareholder wealth, Takeover speculation, Distraction |
| JEL: | D24 G00 G34 J24 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:701&r=eff |
| By: | Kosuke Aoki (University of Tokyo); Jouchi Nakajima (Hitotsubashi University); Masato Takahashi (Bank of Japan); Tomoyuki Yagi (Bank of Japan); Kotone Yamada (Bank of Japan) |
| Abstract: | Recently the efforts toward decarbonization are spreading both in Japan and abroad. In this paper, we examine the developments in Japan's energy intensity, a measure of energy efficiency, and their background at the aggregate and sectoral levels. The main results are as follows. Energy efficiency in Japan improved considerably between the 1970s and the 1980s, mainly due to the progress in energy-saving technical changes in the business sector. Although the pace of improvement decelerated on the whole from the 1990s to the first half of the 2000s, Japan's energy efficiency has returned to a moderate improving trend, particularly in the household sector, in recent years. Our estimate using a simple model of the household sector shows that the recent improvement in aggregate energy efficiency may reflect households' purchases and utilization of energy-saving goods produced by the business sector. Further efforts are expected to be made in each sector to achieve carbon neutrality. |
| Keywords: | Climate Change; Carbon Neutrality; Energy Efficiency; Technical Change |
| JEL: | E21 E22 H23 Q54 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp23e10&r=eff |
| By: | Nathalie Scholl; Sébastien Turban; Peter N. Gal |
| Abstract: | This paper describes the methodology used for crosswalking occupation-based measures of Green (“environmentally friendly”) and Brown (“polluting”) jobs from the Standard Occupational Classification (SOC) system to the International Standard Occupation Classification (ISCO) 08 at the most detailed (4-digit) level. The original, task-based Greenness scores by Vona et al. (2018) are provided at the 8-digit SOC level, and the industry-based Brownness measures are provided in 6-digit SOC. Crosswalking these measures requires several choices in terms of weighting and aggregating, which this paper describes in detail. The robustness of the resulting measures to the different weighting options and underlying assumption is tested using Linked Employer-Employee data from Portugal. An empirical application to the Productivity-Greenness link at the firm level shows the robustness of this link to different weighting choices, and confirms that all of the different measures derived are consistent in measuring the Greenness of jobs. |
| Keywords: | Brown occupations, Green occupations, Green skills, Green transition, , Occupation Classification, productivity |
| JEL: | J21 J24 L25 |
| Date: | 2023–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaac:33-en&r=eff |
| By: | Kolodziej, Ingo; Coe, Norma B.; Van Houtven, Courtney Harold |
| Abstract: | Informal care reduces work on the intensive and extensive margins; however, we do not know how caregiving affects work productivity. We link two new unique national U.S. data sets to provide the first causal estimates of the effect of providing at least 80 hours of informal care in the past month on work productivity, compared to less intensive caregiving. We control for caregiver selection into work using a Heckman selection model and use instrumental variables to estimate the causal effect of providing at least 80 hours in the past month on work productivity, using the Work Productivity and Activity Impairment (WPAI) instrument, and weekly hours worked. The IV is widowhood status of the care recipient. For both the OLS and IV results, providing at least 80 hours in the past month is associated with a 0.07-0.13 point increase in the WPAI compared to non-intensive caregivers, signifying lower work productivity. This result is mainly driven by presenteeism, or employees being less productive on the job, as opposed to absenteeism, measured by missed days of work. The OLS models are precisely estimated (p |
| Keywords: | Informal care, work productivity, Heckman selection correction, instrumental variables |
| JEL: | C36 I1 J14 J24 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:1010&r=eff |
| By: | Brière, Marie; Simar, Léopold (Université catholique de Louvain, LIDAM/ISBA, Belgium); Szafarz, Ariane; Vanhems, Anne |
| Abstract: | This paper builds confidence intervals for the distance in the mean-variance plan between any portfolio and the Markowitz efficient frontier. The distance can be calculated in any risk-return direction chosen by the investor. To do so, we introduce random variations of inputs and outputs and estimate the frontier. We then use subsampling approximations to derive confidence intervals around the distance of portfolios to the efficient frontier. This methodology offers a novel statistical approach to mean-variance portfolio choice, which is key for asset management. We apply this approach to show that the distance between the S&P 500 index and the efficient frontier made up of all the shares in the index is significantly different from zero in all testable directions. This result adds robustness to the still controversial Roll critique of the Capital Asset Pricing Model (CAPM). In the general setup of production theory, our paper addresses the sensitivity of the estimated efficiency scores to random variations in the original inputs-outputs. |
| Keywords: | Portfolio choice ; Random inputs-outputs ; Directional distance ; FDH estimator ; Efficient frontier |
| JEL: | C44 C12 C67 G11 G14 |
| Date: | 2023–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:aiz:louvad:2023017&r=eff |
| By: | Daraio, Cinzia; Di Leo, Simone; Simar, Léopold (Université catholique de Louvain, LIDAM/ISBA, Belgium) |
| Abstract: | Due to increasing consumption and urbanization, urban waste collection has gained a lot of attention in recent years. One of the main problems in this field is the balance between management costs, proper waste collection, and regulatory target. Waste collection is critical to pursue a high recycling capacity. There are two main types of collection: sorted waste, which separates collection after recycling or composting, and unsorted waste, which does not. As a result, Italy's main concerns in recent years have been urban waste management and recycling. One of the main reform in the Italian waste collection was introducing the sorted collection target of 65% with the legislative decree no. 252/2006. We analyze the efficiency and the effect of population, density, income and size on the sorted waste collection of 275 Italian municipalities from 2016 to 2019. We apply recently introduced smoothed approximations of nonparametric frontier models (Daraio and Simar, 2022) to estimate the coefficients of the cost efficiencies of sorted and unsorted waste. This approach does not assume any hypothesis on the efficient frontier's functional form and on the inefficiency's distribution. We analyze the effect of external and environmental factors, related to economies of scale (population served), territorial size, economies of density (population density) and economic development considering the municipalities that reached the regulatory target and those that did not. |
| Keywords: | Waste collection ; Italy ; FDH ; smoothed approximations of nonparametric frontiers ; waste economy |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:aiz:louvad:2023018&r=eff |
| By: | Marie Briere; Léopold Simar; Ariane Szafarz; Anne Vanhems |
| Abstract: | This paper builds confidence intervals for the distance in the mean-variance plan between any portfolio and the Markowitz efficient frontier. The distance can be calculated in any risk-return direction chosen by the investor. To do so, we introduce random variations of inputs and outputs and estimate the frontier. We then use subsampling approximations to derive confidence intervals around the distance of portfolios to the efficient frontier. This methodology offers a novel statistical approach to mean-variance portfolio choice, which is key for asset management. We apply this approach to show that the distance between the S&P 500 index and the efficient frontier made up of all the shares in the index is significantly different from zero in all testable directions. This result adds robustness to the still controversial Roll critique of the Capital Asset Pricing Model (CAPM). In the general setup of production theory, our paper addresses the sensitivity of the estimated efficiency scores to random variations in the original inputs-outputs. |
| Keywords: | Portfolio choice; Random inputs-outputs; Directional distance; FDH estimator; Efficient frontier |
| JEL: | C44 C12 C67 G11 G14 |
| Date: | 2023–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/358148&r=eff |
| By: | Anwar Adem; Richard Kneller; Cher Li |
| Abstract: | This study examines the influence of information constraints on firms’ efficiency in using digital technologies, focusing on business websites. Through two natural field experiments in the UK, we provide firms with benchmarked performance information on their websites. The experimental designs enable us to assess the salience of the information provided and heterogeneity linked to prior experience and catch-up potential. Our results indicate that performance gaps are not primarily driven by information constraints, as the treatment demonstrates a limited overall impact on motivating firms to improve, with a short-lived effect during the Covid-19 lockdowns. We further support these conclusions using data on website-building software and the number of page views. |
| Keywords: | ield experiment, digital technologies, information constraints, performance management, efficiency |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:not:notgep:2023-07&r=eff |
| By: | Christine de la Maisonneuve; Balazs Egert; David Turner |
| Abstract: | This paper uses a new measure of human capital, which distinguishes both quality and quantity components, to estimate the long-term effect of the Covid-19-related school closures on aggregate productivity through the human capital channel. Productivity losses build up over time and are estimated to range between 0.4% and 2.1% after 45 years, for 12 weeks and 2 years of school closure, respectively. These results appear to be broadly consistent with earlier findings in the literature. Two opposing effects might influence these estimates. Online teaching would lower economic costs while learning losses in tertiary education (not considered here) would inflate them. Policies aimed at improving the quality of education and adult training will be needed to offset or, at least, alleviate the impact of the pandemic on human capital. |
| Keywords: | Covid-19, human capital, PISA, PIAAC, productivity, education policies, OECD countries |
| JEL: | E24 I19 I20 I25 I26 I28 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10396&r=eff |
| By: | HUANG Hanwei; SENGA Tatsuro; Catherine THOMAS; ZHANG Hongyong |
| Abstract: | Using microdata on Japanese multinational enterprises (MNEs) from 2010 to 2019, we examine the impact of Brexit on global production networks and supply chains. Specifically, we conduct a difference-in-differences analysis and compare the performance of Japanese foreign affiliates in the United Kingdom (UK) and other European Union (EU) countries before and after the 2016 Brexit referendum. We obtained the following three findings. First, Brexit significantly decreased the total sales of Japanese affiliates in the UK by approximately 11%. Their sales dropped because of lower local sales in the UK and exports, especially to other European countries. The impact of Brexit on Japanese affiliates’ total sourcing in the UK was even larger (approximately 14%), especially for their local purchases and imports from the European market. Second, Japanese foreign affiliates in the UK decreased their employment, number of Japanese expatriates, and capital investment after Brexit. At the same time, the productivity and profitability of Japanese affiliates decreased and their probability of exiting the UK increased significantly. Third, the negative impact of Brexit was larger in non-manufacturing industries than in manufacturing industries, suggesting much higher trade costs in service trade. Our findings suggest that a substantial increase in (uncertainty over) trade costs due to institutional changes may reshape global production networks and supply chains. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23037&r=eff |
| By: | Lucia Dalla Pellegrina; Damla Diriker; Paolo Landoni; Davide Moro; Mahinda Wijesiri |
| Abstract: | This paper contributes to a growing body of literature on microfinance institutions, where the equilibrium between social and financial sustainability is one of the hottest topics. However, the evidence regarding this relationship in the European microfinance sector is scarce. In the current study, we intend to fill this knowledge gap. Specifically, using an original dataset obtained from a survey conducted in 2016-2017 on 159 Microfinance institutions (MFIs) operating in 38 European countries, we investigate whether pursuing proactive social sustainability can improve financial sustainability, measured by technical efficiency. Overall, our results show that MFIs that are more likely to comply with their social sustainability objectives (especially on the extensive margin, with a higher number of loans granted and on the intensive margin, by serving a higher share of women) are also doing well financially. The only aspect on which social sustainability does not seem to have a positive effect on financial sustainability is the financing of the poorest through the provision of small-scale loans. These peculiarities are somehow common to other non-European contexts. On the other hand, a phenomenon that seems peculiar to the European context is that larger MFIs, especially those operating in a context not subject to stringent financial regulation tend to show a comparative advantage and better withstand competition from the traditional banking sector. Our results are robust to alternative measures of financial sustainability and to the use of the Generalized Method of Moments (GMM) and Instrumental Variable (IV) estimation techniques to overcome the problem of endogeneity. |
| Keywords: | Microfinance, European Union, social sustainability, outreach, mission drift, financial sustainability. |
| JEL: | G21 I32 L26 O16 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:515&r=eff |