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on Efficiency and Productivity |
| By: | Paz, Bruno; Dalheimer, Bernhard; Wollni, Meike |
| Abstract: | Increasing food demand will most likely be met with agricultural intensification and land clearing, exacerbating environmental consequences associated with food supply. The mechanisms and trade-offs between agriculture and the environment are heterogeneous and not well understood, yet key to enhance food production while safeguarding the environment, ensuring a dual purpose of food systems. This study examines the relationship between voluntary sustainability standards (VSS) and Rwandese coffee farmers’ technical efficiency and productivity while exploring the mechanisms behind potential trade-offs and synergies between certification, productivity, and forest protection. Using cross-sectional farm-level data of 842 coffee farmers in Rwanda, we measure the effect of VSS on technical efficiency and an enhanced vegetation index (EVI) reflecting vegetation health and density around the farm. We combine a stochastic frontier analysis controlling for sample selection bias with mediation analysis. Our analysis shows that certified farmers exhibit greater technical efficiency levels than non-certified farmers. We can attribute this to better farm management, leading to 19% and 4% increases in their productivity and technical efficiency, respectively. Our analysis also suggests that certifications lead to higher enhanced vegetation index scores in and around the coffee plots, which we attribute to the regulatory mechanisms associated with certification. We conclude that VSS can enhance coffee production while safeguarding the environment and being a valuable component of a more comprehensive rural development program. |
| Keywords: | Community/Rural/Urban Development, Crop Production/Industries, Environmental Economics and Policy, Farm Management, International Development, Production Economics, Productivity Analysis, Sustainability |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:gausfs:344224 |
| By: | Stephen Ayerst; Duc Nguyen; Diego Restuccia |
| Abstract: | We examine aggregate productivity differences across nations using cross-country firm-level data and a quantitative model of production heterogeneity with distortions featuring operation decisions (selection) and productivity-enhancing investments (technology). Empirically, less developed countries feature higher distortions and larger dispersion in firm-level productivity, mostly resulting from the higher prevalence of unproductive firms. Quantitatively, measured cross-country differences in the elasticity of distortions with respect to firm productivity generate the bulk of empirical patterns and over two-thirds of cross-country labor productivity differences. Both selection and technology channels are important. Variation in static misallocation also plays an important role, albeit smaller. |
| Keywords: | Firms, productivity, size, distortions, misallocation, selection, technology. |
| JEL: | O11 O14 O4 |
| Date: | 2024–07–18 |
| URL: | https://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-779 |
| By: | Pedro Bento; Diego Restuccia |
| Abstract: | The well-documented decline in business dynamism, measured by the net entry rate of employer firms, has been proposed as an explanation for the productivity growth slowdown in the United States. We examine the role of nonemployers, firms without paid employees, in business dynamism and aggregate productivity. Between 1982 and 2014, the total number of firms per worker including nonemployers increased by 41\%, whereas employer firms per worker declined by -8.7%. Using a standard model of firm dynamics, we derive the implications for aggregate productivity associated with changes in firms per worker and relative size distributions. We find that firm dynamics imply an increase in aggregate productivity of 15.6%, about half the growth observed in the data, that is equally shared by the changes in firms per worker and relative sizes. These results contrast markedly with the much weaker 2.1% growth in aggregate productivity from firm dynamics when abstracting from nonemployer firms. Our results suggest the productivity growth slowdown is not due to changes in net firm entry, and highlight the quantitative importance of comprehensive measures of business dynamism in the U.S. data. |
| Keywords: | nonemployers, employer firms, business dynamism, productivity, TFP. |
| JEL: | O4 O51 E1 |
| Date: | 2024–07–20 |
| URL: | https://d.repec.org/n?u=RePEc:tor:tecipa:tecipa-780 |
| By: | Vaiknoras, Kate A. |
| Keywords: | Production Economics, Productivity Analysis, Crop Production/Industries |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343609 |
| By: | Danial Lashkari; Jeremy Pearce |
| Abstract: | Throughout the twentieth century, steady technological and organizational innovations, along with the accumulation of productive capital, increased labor productivity at a steady rate of around 2 percent per year. However, the past two decades have witnessed a slowdown in labor productivity, measured as value added per hour worked. This slowdown has been particularly stark in the manufacturing sector, which historically has been a leading sector in driving the productivity of the aggregate U.S. economy. What makes this slowdown particularly puzzling is the fact that manufacturing accounts for the majority of U.S. research and development (R&D) expenditure. Despite several recent studies (see, for example, Syverson [2016]), much remains to be uncovered about the nature of this slowdown. This post illustrates a key facet of the mystery: the productivity slowdown appears to be pervasive across industries and across firms of various sizes. |
| Keywords: | productivity; manufacturing; innovation; competition; economic growth |
| JEL: | O33 O40 |
| Date: | 2024–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:98544 |
| By: | Evans Darko (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, IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes); Nadia Saghi-Zedek (IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes); Gervais Thenet (IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR - Université de Rennes) |
| Abstract: | The paper aims to analyze the Technical Efficiency of 70 Commercial banks from 19 African countries from 2009-2020. Using the Data Envelopment Analysis (DEA) method of the two main approaches, Variable Return to Scale (VRS) and Constant Return to Scale (CRS) technique on a Panel Data. We find that African banks have a higher efficacy assessment with the VRS than the CRS technique, thus, with a Pure Technical Efficiency (PTE) score than Technical Efficiency (TE) . Our findings show that the majority of the banks are operating at very low levels of efficiency (not technically efficient), and inability to optimize the conversion of bank assets and liabilities into loan production for customers. Furthermore, the banks are operating inefficiently in scale, economic, and allocative manner due to mismatches in scale of production. Considering these findings, the implications of these inefficiencies extend to the overall economic development and financial stability of the region. |
| Abstract: | Le présent article vise à analyser l'efficacité technique de 70 banques commerciales de 19 pays africains sur la période 2009-2020. En utilisant la méthode d'analyse de l'enveloppement des données (DEA) des deux approches principales, le rendement variable de l'échelle (VRS) et la technique du rendement constant de l'échelle (CRS) sur des données de panel. Nous constatons que les banques africaines ont une évaluation de l'efficacité plus élevée avec la technique VRS qu'avec la technique CRS, donc avec un score d'efficacité technique pure (PTE) plutôt que d'efficacité technique (TE). Nos résultats montrent que la majorité des banques opèrent à des niveaux d'efficacité très bas (pas techniquement efficaces), et sont incapables d'optimiser la conversion des actifs et des passifs bancaires en production de prêts pour les clients. En outre, les banques opèrent de manière inefficace en termes d'échelle, d'économie et d'allocation en raison d'une inadéquation de l'échelle de production. Compte tenu de ces résultats, les implications de ces inefficacités s'étendent au développement économique global et à la stabilité financière de la région. |
| Keywords: | African banking, Data Envelopment Analysis, Technical Efficiency |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04613082 |
| By: | Kwon, Suyeon; Suh, Dong Hee |
| Keywords: | Agricultural Finance, Production Economics, Risk And Uncertainty |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343632 |
| By: | Miranda De Souza Almeida, Felipe |
| Keywords: | Productivity Analysis, Production Economics, International Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343849 |
| By: | Lee, Seo Woo; Swinton, Scott M. |
| Keywords: | Productivity Analysis |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea22:343620 |
| By: | Ashley Ward; Belen Zinni |
| Abstract: | Composition Adjusted-Labour Input (CALI) measures account for workers’ differences in skills and productive capacity. This study reviews the most relevant literature to have produced CALI estimates to date and presents a generic approach to produce CALI measures for 21 countries. It finds that education and age (proxy for work experience) are two key workers’ characteristics to be included in CALI measures, with additional workers characteristics having a more limited impact. Replacing a traditional measure of labour input, such as hours worked, with a measure of CALI in the growth accounts leads to a significant downward revision in multifactor productivity (MFP) growth in countries that experience large changes in the composition of labour. |
| Keywords: | growth accounts, hours worked, labour input, multifactor productivity (MFP), productivity |
| JEL: | E1 E24 J21 |
| Date: | 2024–08–06 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stdaaa:2024/06-en |
| By: | Getahun, Tigabu D.; Fetene, Gebeyehu M.; Baumüller, Heike; Kubik, Zaneta |
| Keywords: | Agribusiness, Industrial Organization, Labor and Human Capital |
| Date: | 2024–07–12 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ubzefd:344125 |
| By: | Barış Kaymak; Immo Schott |
| Abstract: | There is substantial asymmetry in effective corporate income tax rates across firms. While tax asymmetries would reduce productivity in frictionless economies, they can improve efficiency in a distorted economy if taxes alleviate other economic frictions. We develop a framework to estimate to what extent tax asymmetries affect productivity in distorted economies. Using US firm-level balance sheet data alongside measures of effective marginal tax rates, we find a positive correlation between tax rates and factor productivity, suggesting that tax asymmetry exacerbates the distortions from other economic frictions. Eliminating tax rate asymmetries would raise aggregate productivity by 3 to 4 percent if taxes distort capital costs alone. Models where taxes also distort the marginal cost of labor predict potential gains as high as 9 percent. |
| Keywords: | Business Taxation; Aggregate Productivity; TFP; Misallocation |
| JEL: | E23 H25 O47 |
| Date: | 2024–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgif:1393 |
| By: | Agnes Norris-Keiller; John Van Reenen; Aureo de Paula |
| Abstract: | Standard methods for estimating production functions in the Olley and Pakes (1996) tradition require assumptions on input choices. We introduce a new method that exploits (increasingly available) data on a firm's expectations of its future output and inputs that allows us to obtain consistent production function parameter estimates while relaxing these input demand assumptions. In contrast to dynamic panel methods, our proposed estimator can be implemented on very short panels (including a single cross-section), and Monte Carlo simulations show it outperforms alternative estimators when firms' material input choices are subject to optimization error. Implementing a range of production function estimators on UK data, we find our proposed estimator yields results that are either similar to or more credible than commonly-used alternatives. These differences are larger in industries where material inputs appear harder to optimize. We show that TFP implied by our pro-posed estimator is more strongly associated with future jobs growth than existing methods, suggesting that failing to adequately account for input endogeneity may underestimate the degree of dynamic reallocation in the economy. |
| Keywords: | expectations, production functions, productivity, input demand |
| Date: | 2024–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2018 |
| By: | Agnes Norris-Keiller; Tim Obermeier; Andreas Teichgraeber; John Van Reenen |
| Abstract: | When labour market competition is imperfect, positive industry (and firm) productivity shocks can be passed through to workers in the form of higher wages. We document how the UK auto industry, following a period of decline, experienced a four-decade-long productivity boom. There was a thirteen-fold increase in real output per worker between 1980 and 2018, compared to a four-fold increase in manufacturing. Greater foreign ownership, tougher competition and improved industrial relations all likely played a role. The greater use of intermediate inputs (outsourcing) and growing capital intensity account for most of this growth, but we estimate that TFP still grew three times as fast in the auto industry than the rest of manufacturing. Examining whether this productivity increase has been shared with employees, we find that auto workers experienced far stronger hourly wage growth than workers in the rest of manufacturing. After controlling for individual fixed effects, the auto wage premium relative to the rest of manufacturing doubled from 8% in the 1980s to 17% in the 2010s. Interpreted through the lens of a rent sharing model, we estimate that most of the wage increase (63% in the baseline case) can be accounted for by the auto productivity boom. In contrast, the bargaining power of UK auto workers seems to have fallen. If worker power had held up at the 1980s level, the wage premium would have been about 38% higher in the 2010s. |
| Keywords: | wages, firms, market performance, manufacturing, automotive |
| Date: | 2024–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2015 |
| By: | Ashraf, Nava (London School of Economics); Bandiera, Oriana (London School of Economics); Minni, Virginia (University of Chicago Booth School of Business); Quintas-Martínez, Víctor (MIT) |
| Abstract: | We ask whether the gendered division of work affects firm productivity across the spectrum of economic development. Personnel records of over 100, 000 individuals hired by a global firm that operates in 100 countries reveal that the performance of female employees is higher where women are underrepresented in the candidate pool. This implies productivity gains from hiring more women, but realizing them would require increasing women's pay relative to men. The findings highlight how unequal gender norms in local labor markets create an equity-efficiency trade-off inside the firm, particularly in low-income countries with conservative gender norms. |
| Keywords: | female labor force participation, multinationals, local labor markets, gender pay gap, firm productivity |
| JEL: | O12 O15 M5 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17103 |
| By: | Chen, Yining; S. Torrent, Hudson; A. Ziegelmann, Flavio |
| Abstract: | We propose a robust methodology for estimating production frontiers with multi-dimensional input via a two-step nonparametric regression, in which we estimate the level and shape of the frontier before shifting it to an appropriate position. Our main contribution is to derive a novel frontier estimation method under a variety of flexible models which is robust to the presence of outliers and possesses some inherent advantages over traditional frontier estimators. Our approach may be viewed as a simplification, yet a generalization, of those proposed by Martins-Filho and coauthors, who estimate frontier surfaces in three steps. In particular, outliers, as well as commonly seen shape constraints of the frontier surfaces, such as concavity and monotonicity, can be straightforwardly handled by our estimation procedure. We show consistency and asymptotic distributional theory of our resulting estimators under standard assumptions in the multi-dimensional input setting. The competitive finite-sample performances of our estimators are highlighted in both simulation studies and empirical data analysis. |
| Keywords: | concavity; local polynomial smoothing; monotonicity; outlier detection; shape-constrained regression; Concavity |
| JEL: | C14 C20 |
| Date: | 2023–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:119389 |
| By: | Mehler, Maren F.; Krautter, Kai |
| Abstract: | Generative Artificial Intelligence (GenAI) has become widespread in daily work but present novel challenges for users as previously meaningful tasks can now be completed by GenAI. This study examines the impact of ChatGPT on task performance and perceived meaningfulness in two programming tasks. In an online experiment (n=161) assigning participants to coding or debugging tasks, with and without ChatGPT assistance, we found that using ChatGPT improved task performance, partially because the supported tasks are less difficult. However, using ChatGPT resulted in lower perceived meaningfulness, partly because participants considered the tasks less effortful. Notably, both tasks exhibited slightly different results, indicating that contextual factors may amplify or mitigate the effects. This study emphasizes the dual nature of GenAI integration, balancing enhanced performance with psychological impacts on users. Our findings offer insights for organizations and developers on integrating GenAI, highlighting the importance of incorporating efficiency gains with the meaningfulness of human work. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:146774 |
| By: | McAdam, Peter; Meinen, Philipp; Papageorgiou, Chris; Schulte, Patrick |
| Abstract: | Using a new administrative dataset, we provide fresh micro-level evidence on firms' returns to scale (RTS). We employ a new administrative database, iBACH, which contains extensive high-quality annual balance sheet, financial, and demographic information on more than two million non-financial manufacturing, trade and service corporations for five European countries over 2008-2018. Whereas on average, we find sectoral RTS to be close to one (0.98, with a 0.74 - 1.18 range), 32 percent of firms exhibit decreasing returns, and 10 percent increasing returns to scale (IRTS). Although the RTS values have remained relatively stable, there is evidence of some tendency for them to increase over time. When we allow for imperfect competition, the RTS range tightens to 0.98 - 1.08, with a higher share of IRTS industries (15 percent) and essentially zero DRTS cases. Increasing returns are mostly a feature of manufacturing. Finally, we analyze the relationship between different industry characteristics and our RTS estimates. |
| Keywords: | Firm & sectoral production function estimation, imperfect competition, firm characteristics, Gandhi-Navarro-Rivers, iBACH database |
| JEL: | E2 D2 L1 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:300572 |
| By: | Danilo Cascaldi-Garcia; Hyunseung Oh |
| Abstract: | Investment related to artificial intelligence (AI) is booming in the U.S. compared to other countries, as shown in figure 1. Moreover, new business registrations have surged in the U.S. since the pandemic, unlike in the euro area where new business registrations remained flat (de Soyres et al. 2024). |
| Date: | 2024–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfn:2024-07-19-2 |
| By: | Malmberg, Chiara (IHE - The Swedish Institute for Health Economics); Althin, Rikard (IHE - The Swedish Institute for Health Economics); Olofsson, Sara (IHE - The Swedish Institute for Health Economics) |
| Abstract: | Menopause is a biological process which occurs in all women. It marks the end of a woman’s reproductive years and usually occurs between the ages of 45 to 55 years. Menopause is recognised to have occurred when menstruation has ceased for 12 consecutive months. <p> Menopause is associated with a number of symptoms which all can significantly impair women’s quality of life. The most common symptoms are vasomotor symptoms (VMS) such as hot flushes and night sweats. Affecting women in their productive years, these symptoms lead to a significant burden in the form of productivity loss due to absence from work (absenteeism) and impairment while at work (presenteeism). Up until now, there is a lack of studies examining this burden in the Nordic countries. <p> The objective of this study was to estimate the productivity loss of women with moderate to severe VMS during menopausal transition in the Nordic countries (Denmark, Finland, Iceland, Norway, Sweden). <p> Costs associated with absence from or impairment at work were included. Estimates on absenteeism, presenteeism and prevalence of moderate to severe VMS were derived from a study of VMS including Nordic countries. Information on work time, employment and labour costs were derived from public European statistics. <p> The estimated annual number of hours of productivity loss, including absenteeism and presenteeism due to moderate to severe VMS, varied from approximately 95 hours in Denmark to 165 hours in Norway. <p> Impairment while at work accounted for the larger share of hours, with 65% in Denmark and 80% to 90% in the other countries. <p> Annual per person costs for this productivity loss varied from approximately €4, 600 in Denmark to €8, 700 in Norway. <p> Annual population costs varied from approximately €13 million in Iceland to €290 million in Norway. <p> For all the Nordic countries together, the annual population costs amount to approximately €865 million. <p> This study has shown that moderate to severe VMS in menopausal women leads to an economic burden related to productivity loss in the Nordic countries, resulting in a loss of on average 2.5-4 weeks per postmenopausal woman per year. There is a potential for reducing the burden associated with moderate to severe VMS to the benefit both to the society and to the individual woman. |
| Keywords: | Menopause; vasomotor symptoms; productivity loss |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:ihewps:2024_009 |