nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2023‒11‒06
eight papers chosen by

  1. Agricultural Productivity in El Salvador: A Preliminary Analysis By Bravo-Ureta, Boris E.; Njuki, Eric; Palacios, Ana Claudia; Salazar, Lina
  2. Profitability, investment and capital productivity By DiMaria, charles-henri
  3. Do Large Firms Generate Positive Productivity Spillovers? By Mary Amiti; Cédric Duprez; Jozef Konings; John Van Reenen
  4. How important is mobile broadband latency for total factor productivity growth? By Edquist, Harald
  5. Competitive positioning of German Universities: Deliberate Decision, Fate, or Fiction? By Uwe Cantner; Nils Grashof; Thomas Grebel; Anna Kosmützky; Georg Krücken; Xijie Zhang
  6. Learning from experts: Energy efficiency in residential buildings By Billio, Monica; Casarin, Roberto; Costola, Michele; Veggente, Veronica
  7. Firm Retention and Productivity of Apprentices By Jeremy Hervelin
  8. The Impact of the Energy Conservation Law on Enterprise Energy Efficiency: Quasi-Experimental Evidence from Chinese Firms By Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le

  1. By: Bravo-Ureta, Boris E.; Njuki, Eric; Palacios, Ana Claudia; Salazar, Lina
    Abstract: The need to enhance food security while reducing poverty along with the growing threat imposed by climate change clearly reveal that it is imperative to accelerate agricultural productivity growth. This paper estimates micro-level production models to identify the major factors that have contributed to productivity growth in El Salvador, including irrigation, purchased inputs, mechanization, technical assistance, and farm size, among others. The econometric framework adopted in this investigation is grounded on recent panel data stochastic production frontier methodologies. The results obtained from the estimation of these models are used to calculate Total Factor Productivity (TFP) change and to decompose such change into different factors, including technological progress, technical efficiency (TE), and economies of scale. The findings imply that efforts are needed to improve productivity in both technological progress and technical efficiency where the latter is a measurement of managerial performance. This in turn indicates that resources should be devoted to promoting the adoption and diffusion of improved technologies while enhancing managerial capabilities through agricultural extension.
    Keywords: agriculrure;agriculture productivity;El Salvador;Agriculture policy
    JEL: Q10 Q18 Q12
    Date: 2022–02
  2. By: DiMaria, charles-henri
    Abstract: Capital accumulation is pivotal to produce goods and services. Common knowledge is that entrepreneurs invest because of potential profit. However, the various theoretical frameworks as well as empirical studies are not providing unequivocal evidence of direct causality between profit and investment decisions. In this document we use Granger symetric causality test as well as asymmetric causality test first proposed by (Hatemi-J, 2012). We examine possible causality between profit and investment, profit and unit labour cost and between investment and productivity.
    Keywords: Capital productivity, rate of profit, asymmetric causality test
    JEL: E22 O47
    Date: 2023–07–21
  3. By: Mary Amiti; Cédric Duprez; Jozef Konings; John Van Reenen
    Abstract: Numerous studies have documented the rising dominance of large firms over the last few decades in many industrialized countries. Many research papers have focused on the potential negative effects of this increased market concentration, raising concerns about market power in both labor and product markets. In a new study, we investigate whether large firms also generate positive effects. Our research shows that large firms generate significant positive total factor productivity (TFP) spillovers to their domestic suppliers. To date, these types of spillovers have only been identified for multinational enterprises located in developing countries. Using firm-to-firm transaction data for an industrialized country, Belgium, we find that large domestic firms, as well as multinationals, generate positive TFP spillovers.
    Keywords: large firms; productivity; spillovers
    JEL: E2
    Date: 2023–10–12
  4. By: Edquist, Harald
    Abstract: This paper investigates the relationship between the log change in mobile broadband latency and total factor productivity (TFP) growth based on data for 130 countries. It finds that there is a strong correlation between TFP growth and one year lag of latency growth once controlling for the growth of labor and capital services in OECD countries. The interpretation of the findings is that a 10 percentage points decrease in the growth of latency in period t-1 is associated with an increase of 0.3 percentage points in TFP growth. The findings are in accordance with the framework of general purpose technologies that suggests that the impact of new technologies often appear with a lag. Moreover, no relationship is found for non-OECD countries, which suggest that it is only OECD countries that are able to take advantage of the benefits of lower latency. One possible explanation could be that OECD countries have reached a higher maturity in digitalization and automation in production processes and thus are able to take advantage of the benefits of lower latency.
    Keywords: ICT, Productivity, Latency, Mobile broadband networks, Economic development
    JEL: D24 O33 O47
    Date: 2023
  5. By: Uwe Cantner (Friedrich Schiller University of Jena); Nils Grashof (Friedrich Schiller University of Jena); Thomas Grebel (Ilmenau University of Technology); Anna Kosmützky (Leibniz University Hannover, Leibniz Center for Science and Society (LCSS)); Georg Krücken (International Center for Higher Education Research (INCHER)); Xijie Zhang (Ilmenau University of Technology)
    Abstract: With the increasing autonomy, the competitive pressure on German universities is rising. More freedom comes along with a higher obligation to position oneself in the (German) tertiary education and research market. We investigate to what extent a (competitive) positioning of German universities can be detected and how their positioning changes over time. Using non-parametric productivity estimation, we analyze 79 Germany universities based on information about the German University Statistics (Hochschulstatistik) provided by the German statistical office (Statistisches Bundesamt). Our (preliminary) results show that a clear positioning according to productivity statistics remains vague. The resulting competitive dynamics remains low, whereas the Excellence Initiative only induced an anticipation effect in the competitive dynamics. Overall, the scope of (most) universities for a competitive repositioning seems to be low.
    Keywords: Competition, German Universities, Efficiency, Positioning, DEA
    Date: 2023–09–28
  6. By: Billio, Monica; Casarin, Roberto; Costola, Michele; Veggente, Veronica
    Abstract: Measuring and reducing energy consumption constitutes a crucial concern in public policies aimed at mitigating global warming. The real estate sector faces the challenge of enhancing building efficiency, where insights from experts play a pivotal role in the evaluation process. This research employs a machine learning approach to analyze expert opinions, seeking to extract the key determinants influencing potential residential building efficiency and establishing an efficient prediction framework. The study leverages open Energy Performance Certificate databases from two countries with distinct latitudes, namely the UK and Italy, to investigate whether enhancing energy efficiency necessitates different intervention approaches. The findings reveal the existence of non-linear relationships between efficiency and building characteristics, which cannot be captured by conventional linear modeling frameworks. By offering insights into the determinants of residential building efficiency, this study provides guidance to policymakers and stakeholders in formulating effective and sustainable strategies for energy efficiency improvement.
    Keywords: Energy efficiency, Energy Performance Certificate, Machine learning, Tree-based models, big data
    JEL: C10 C53 C50
    Date: 2023
  7. By: Jeremy Hervelin (Université de Cergy-Pontoise, THEMA)
    Abstract: This study investigates the retention rate of young people in firms that offer apprenticeship positions. While the majority of training firms hire apprentices with the aim of retaining them when the contract ends, only a small proportion of youths actually transition into full-time employment in the same firm. To explain this phenomenon, I rely on a tractable model that incorporates firm decision-making processes, enabling an analysis of the retention rate. By estimating the productivity distribution of apprentices based on observed wage data from French surveys, the findings indicate that training firms, on average, benefit more from separating from apprentices rather than hiring them as workers.
    Keywords: Firm retention, Productivity, Apprenticeship, Maximum Likelihood
    JEL: J24 M53 M51
    Date: 2023
  8. By: Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
    Abstract: We employ a regression discontinuity design (RDD) to investigate the causal effect of China's Energy Conservation Law (ECL) on the energy efficiency of Chinese firms. Using data from the 2018 China Employer-Employee Survey (CEES), we find that the energy regulation has a positive impact on enterprise energy efficiency. Furthermore, we observe that the effects of the regulation vary across industries, ownership types, and firm ages. We also find that energy management system (EnMS) and technological innovation are mechanisms through which the energy regulation helps improve enterprise energy efficiency. These findings underscore the importance of well-designed and effectively implemented energy regulations in fostering energy efficiency and reducing carbon emissions in the industrial sector. They also highlight the need to consider the heterogeneity of the regulatory impact when designing energy-saving policies.
    Keywords: Energy Conservation Law, energy regulation, energy efficiency, China, regression discontinuity design
    JEL: K32 Q56 Q58
    Date: 2023

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