|
on Efficiency and Productivity |
|
Issue of 2024‒05‒13
fourteen papers chosen by |
| By: | Montacer Ben Cheikh Larbi; Sina Belkhiria |
| Abstract: | Technical efficiency indices (TEIs) can be estimated using the traditional stochastic frontier analysis approach, which yields relative indices that do not allow self-interpretations. In this paper, we introduce a single-step estimation procedure for TEIs that eliminates the need to identify best practices and avoids imposing restrictive hypotheses on the error term. The resulting indices are absolute and allow for individual interpretation. In our model, we estimate a distance function using the inverse coefficient of resource utilization, rather than treating it as unobservable. We employ a Tobit model with a translog distance function as our econometric framework. Applying this model to a sample of 19 airline companies from 2012 to 2021, we find that: (1) Absolute technical efficiency varies considerably between companies with medium-haul European airlines being technically the most efficient, while Asian airlines are the least efficient; (2) Our estimated TEIs are consistent with the observed data with a decline in efficiency especially during the Covid-19 crisis and Brexit period; (3) All airlines contained in our sample would be able to increase their average technical efficiency by 0.209% if they reduced their average kerosene consumption by 1%; (4) Total factor productivity (TFP) growth slowed between 2013 and 2019 due to a decrease in Disembodied Technical Change (DTC) and a small effect from Scale Economies (SE). Toward the end of our study period, TFP growth seemed increasingly driven by the SE effect, with a sharp decline in 2020 followed by an equally sharp recovery in 2021 for most airlines. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.04590&r=eff |
| By: | Stephen Roper (Enteprise Research Centre, University of Warwick) |
| Keywords: | Productivity, firm-level |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:020&r=eff |
| By: | Richard A. L. Jones (The University of Manchester) |
| Keywords: | Productivity, firm-level |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:021&r=eff |
| By: | Damian Grimshaw (King's College London, The Productivity Institute); Mary O'Mahony (The Productivity Institute, King's College London); Andy Westwood (The University of Manchester) |
| Keywords: | productivity, skills, higher education |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:023&r=eff |
| By: | Jonatan Pinkse (The University of Manchester, King's College London, The Productivity Institute) |
| Keywords: | Productivity, green transition, Net Zero |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:024&r=eff |
| By: | Bart van Ark (The Productivity Institute, The University of Manchester); Mary O'Mahony (The Productivity Institute, King's College London) |
| Keywords: | Productivity, UK regions, UK places |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:018&r=eff |
| By: | Diane Coyle (Bennett Institute for Public Policy, University of Cambridge, The Productivity Institute) |
| Keywords: | Productivity, digitalisation, technology |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:022&r=eff |
| By: | Arrighetti, Alessandro; Costa, Stefano; De Santis, Stefano; Landini, Fabio |
| Abstract: | The drivers of firm success in hyper-competitive markets have received growing attention by economic and management scholars. While earlier works paid particular attention to the analysis of firm strategic positioning in markets, most recent approaches emphasized the importance of internal capabilities. This paper combines these two views in a unified approach through a new conceptual construct, strategic dynamism, that we consider as “antecedent” of performance and “descendant” of capabilities. By using a large and unique survey carried out by the Italian Institute of Statistics we document that a) strategic dynamism explains performance differentials among firms, as captured by labor productivity growth and b) internal capabilities, measured as organizational and personnel capabilities, are important drivers of strategic dynamism. Managerial and policy implications are discussed. |
| Keywords: | strategy, capabilities, performance, , organizational capability, personnel capability |
| JEL: | D21 D22 J24 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:289628&r=eff |
| By: | Krüger, Jens J. |
| Abstract: | The paper considers a nonparametric approach to determine portfolio efficiency using specific directions toward the portfolio frontier function. This approach allows for a straightforward incorporation of higher moments of the returns distribution beyond mean and variance. The nonparametric approach is extended by the computation of optimal directions endogenously by maximizing the distance toward the portfolio frontier as a novel methodological feature. An empirical application to Fama–French portfolios demonstrates the applicability of the nonparametric approach. The results show that the optimal directions to the frontier depend on the portfolio considered as well as on the period for which the moments are estimated. Skewness in particular plays a role in determining the optimal direction, whereas kurtosis seems to be less crucial. |
| Date: | 2024–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:144371&r=eff |
| By: | Anna Valero (Centre for Economic Performance, London School of Economics); Bart van Ark (The Productivity Institute, The University of Manchester) |
| Keywords: | Productivity, UK regions, UK places |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:027&r=eff |
| By: | Laura D. Quinby; Gal Wettstein; James Giles |
| Abstract: | A common concern is that an aging workforce will reduce productivity and firm profitability, yet the evidence to date is mixed. This analysis examines the issue using a large sample from the most recent available Census data that links employees to their employers. The results show little evidence that older workers reduce productivity or profitability, although wide variation by industry exists. Thus, concern about an aging workforce hampering economic performance may be overblown. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:crr:issbrf:ib2023-24&r=eff |
| By: | Chihiro Shimizu; Erwin Diewert; Koji Nomura |
| Abstract: | The paper estimates a flexible functional form for a joint cost function using US aggregate data for the years 1970-2022. There are four outputs (consumption, government, investment and exports) and six inputs (imports, labour, machinery and equipment services, structure services, other capital services and land services). Curvature conditions on the joint cost function are imposed without destroying the flexibility of the functional form. Various elasticities of supply and demand are estimated along with technical progress bias terms for each input. When using aggregate time series data based on the System of National Accounts, the paper shows that it is probably better to estimate a joint cost function rather than a gross output function or a GDP function. The paper also shows that assuming that an aggregate production function has constant elasticities of substitution is not appropriate for the US. Finally, the importance of including land as an aggregate input is stressed. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e206&r=eff |
| By: | Ioanna Mouratiadou (ZALF - Leibniz-Zentrum für Agrarlandschaftsforschung = Leibniz Centre for Agricultural Landscape Research, LER - Laboratoire d'Études Rurales - UL2 - Université Lumière - Lyon 2, Isara); Alexander Wezel (AGE - Agroécologie et Environnement - Isara, Isara); Kintan Kamilia (Isara); Angelica Marchetti (SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa]); Maria Luisa Paracchini (JRC - European Commission - Joint Research Centre [Ispra]); Paolo Bàrberi (SSSUP - Scuola Universitaria Superiore Sant'Anna [Pisa]) |
| Abstract: | Abstract Agroecology is identified as an important solution to increase the sustainability of agricultural and food systems. Despite the increasing number of publications assessing the socio-economic outcomes of agroecology, very few studies have consolidated the scattered results obtained on various case studies. This paper provides new insights by consolidating evidence on the varied socio-economic effects of agroecology across a large number of cases at a global level. To this purpose, we used a rapid review methodology, screening more than 13, 000 publications to retrieve evidence on the socio-economic outcomes of the implementation of agroecological practices. The results of the review indicate that (1) agroecological practices are associated more often with positive socio-economic outcomes across the broad range of evaluated metrics (51% positive, 30% negative, 10% neutral, and 9% inconclusive outcomes); (2) the socio-economic metrics associated with financial capital represent the vast majority of evaluated metrics (83% of total) and are affected positively in a large share of cases (53%), due to favourable outcomes on income, revenues, productivity and efficiency; (3) human capital metrics (16%) are associated with a larger number of negative outcomes (46% versus 38% positive), due to higher labour requirements and costs that are however partly compensated by an overall greater number of positive outcomes on labour productivity (55%); and (4) the results vary depending on the agroecological practice assessed; e.g. for agroforestry, we identify 53% positive outcomes while for cropping system diversification 35%. These results indicate an overall favourable potential for farms to benefit from a positive socio-economic performance with the use of agroecological practices. Yet, the magnitude, temporal aspects, and success factors related to these outcomes, as well as the trade-offs between them, and the system-level effects of an agroecological transition are to be further assessed, since they can have an important influence on the performance of individual farms. |
| Keywords: | Agroecological practices, Socio-economic indicators, Sustainable livelihoods, Farm economic performance, Agroforestry, Intercropping |
| Date: | 2024–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04527200&r=eff |
| By: | Aguima Aime Bernard Lompo (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne) |
| Abstract: | The Efficiency of the Public Sector (EPS) has become one of the key challenges in public finances. Efficiency entails the appropriate use of public expenditures to achieve economic and social objectives while limiting budgetary waste. Ineffective public services can lead to wastage and misallocation of resources, which can harm economic performance. Efficiency is therefore a crucial determinant of economic growth and development. This paper summarizes the main findings of our recent study, which provides a comprehensive dataset on EPS for 158 countries and explores how policymakers could enhance efficiency in public service management. |
| Abstract: | L'efficience du secteur public (ESP) est devenue l'un des principaux enjeux des finances publiques. L'efficience implique un usage approprié des dépenses publiques pour la réalisation des objectifs économiques et sociaux, tout en limitant le gaspillage budgétaire. Des services publics inefficaces peuvent entraîner du gaspillage et une mauvaise allocation des ressources, ce qui peut nuire à la performance économique. L'efficience est donc un déterminant essentiel de la croissance et du développement économique. Ce document résume les principales conclusions de notre récente étude, qui fournit un vaste ensemble de données sur l'ESP pour 158 pays et examine comment les décideurs pourraient être plus efficients dans la gestion des services publics. |
| Keywords: | Public finances, Economic performance, Expenditure efficiency, Economic growth, Finances publiques, Performance économique, Efficience des dépenses, Croissance économique |
| Date: | 2023–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04523430&r=eff |