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on Efficiency and Productivity |
| By: | Pajarinen, Mika; Rouvinen, Petri |
| Abstract: | Abstract This working paper investigates intangible investments in Finnish firms from 2014 to 2019, utilizing comprehensive, register-based data from Statistics Finland. We analyze seven categories of internal intangible investments and observe that these investments are highly concentrated, with the top 10% of investors accounting for approximately two-thirds of the total. However, this concentration is comparable to that of employment, value added, and tangible investments. Firms that invest in intangibles generally exhibit higher productivity levels. Specifically, organizational capital and new financial products demonstrate a positive and statistically significant correlation with labor productivity. These findings highlight the significance of intangible investments for firm performance and offer insights into their distribution patterns within the Finnish business sector. |
| Keywords: | Intangible investments, Finnish firms, Labor productivity, Concentration |
| JEL: | D22 L25 O32 O34 |
| Date: | 2025–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:rif:wpaper:129 |
| By: | Samuel Boulanger; Raheeb Dastagir; Daniel de Munnik; Eshini Ekanayake; Kun Mo; Walter Muiruri; Faiza Noor; Sabreena Obaid; Louis Poirier |
| Abstract: | This note presents the annual update of Bank of Canada staff estimates for growth in global potential output. These estimates served as key inputs to the analysis supporting the April 2025 Monetary Policy Report. |
| Keywords: | Potential output; Productivity |
| JEL: | E1 E2 F0 F1 O3 O33 O4 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:25-15 |
| By: | Joshua Mabeta (University of South Bohemia in České Budějovice, Faculty of Economics) |
| Abstract: | This paper reviews the agricultural sector performance of Southern African Development Community (SADC) countries, specifically the efficiency of agricultural production and the overall competitiveness of their agricultural sectors. The study uses data spanning the period from 2001 to 2019 to assess agricultural production performance, and from 2001 to 2021 to investigate the competitiveness of the agricultural sectors. Using Malmquist productivity indices, the findings reveal that while overall productivity has increased in SADC, with 11 out of 15 countries recording an upward trajectory during the review period, technological progress has regressed. The gains in productivity have been driven by technical efficiency rather than advancements in technology. On the other hand, the Normalized Revealed Comparative Advantage (NRCA) index shows that 11 out of the 16 SADC countries were competitive, especially among diversified economies like South Africa, Zimbabwe, and Tanzania, compared to less diversified countries. This demonstrates that diversification plays a critical role in resilience to shocks such as climate change, variability, and global commodity price fluctuations. The findings further reveal that mineral-rich countries have less competitive agricultural sectors, potentially reflecting the presence of Dutch disease. These findings highlight the need to attract foreign direct investment (FDI) not only to reduce the funding gap in the agricultural sectors of SADC countries but also to bring much-needed technological innovation that can drive agricultural productivity, meet the food needs of the fast-growing population, and contribute to the overall growth of their economies. |
| Keywords: | Efficiency, competitiveness, SADC, Malmquist index, Normalized Revealed Comparative Advantage index |
| JEL: | F14 F15 F21 Q10 Q17 |
| Date: | 2025–05–08 |
| URL: | https://d.repec.org/n?u=RePEc:boh:wpaper:02_2025 |
| By: | Nicholas Bloom; Jonathan S. Hartley; Raffaella Sadun; Rachel Schuh; John Van Reenen |
| Abstract: | We show better-managed firms are more dynamic in plant acquisitions, disposals, openings and closings in U.S. Census and international data. Better-managed firms also birth better-managed plants and improve the performance of the plants they acquire. To explain these findings, we build a model with two key elements. First, management is a combination of firm-level management ability (e.g. CEO quality), which can be transferred to all plants, and plant-level management practices, which can be changed through intangible investment (e.g. consulting or training). Second, management both raises productivity and also reduces the operational costs of dynamism: buying, selling, opening and closing plants. We structurally estimate the model on Census microdata, fitting our key dynamic moments, and then use it to establish three additional results. First, mergers and acquisitions raise economy-wide management and productivity by reallocating plants to firms with higher management ability. Banning M&A would depress GDP and management by about 15%. Second, greater product market competition improves both management and productivity by reallocating away from badly managed plants. Finally, management practices account for about a fifth of the cross-country productivity differences with the US. |
| Keywords: | management practices, mergers and acquisitions, productivity, competition |
| Date: | 2025–05–06 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2102 |
| By: | Bauer Peter; Genty Aurelien (European Commission - JRC); Lucke Friedrich |
| Abstract: | Intangible capital is a key driver of productivity growth, competitiveness and resilience. Unlike tangible investment such as machinery and equipment, investment in intangible assets, especially R&D, shows low sensitivity to adverse demand shocks. R&D intensive firms seem to be more resilient (higher employment) during crises and recover faster (higher productivity) afterwards. Productivity growth can contribute to decarbonisation, but in many instances productivity growth and decarbonisation lead to conflicting objectives, which needs to be addressed through policy action. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc140398 |
| By: | Glenn Magerman; Dieter Van Esbroeck |
| Abstract: | This paper evaluates the impact of Covid-19 support measures on firms in Wallonia. Using a rich set of administrative data, we analyze the allocation and effects of firm-level subsidies implemented in 2020–2021 in response to the pandemic. We find that support programs were taken up by mostly small, young firms, and in sectors most affected by lockdowns, such as retail, food services, and construction. We find no evidence of misallocation of resources towards ’zombie firms’, firms which tend to not contribute value added to the economy. Firms that received support experienced an 8–9% increase in labor productivity relative to firms that applied for, but did not obtain support. The impact on firm productivity persists at least one year after support. Moreover, receipt of support is associated with a 19% reduction in the likelihood of firm exit. These findings suggest that the support measures were effective in maintaining economic activity and avoiding mass firm failures during the crisis. These results are also consistent with findings for Flanders, reinforcing the evidence base for the design of crisis-response policies |
| Keywords: | Covid-19, Firm subsidies, productivity |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:eca:wpaper:2013/391423 |
| By: | Selam Abraham; Dany Brouillette; Alex Chernoff; Christopher Hajzler; Stéphanie Houle; Mark Kim; Temel Taskin |
| Abstract: | We explore two scenarios for potential output growth to gain insights into the economic consequences associated with different possible trade policies. Scenario 1 includes limited US tariffs on Canadian exports. Scenario 2 adds a permanent, broad-based 25% increase in US tariffs on imports from all countries excluding Canada and Mexico. |
| Keywords: | Economic models; Labour markets; Monetary policy; Potential output; Productivity |
| JEL: | E2 E3 E4 E5 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:25-14 |
| By: | Vicente J. Bolos; Rafael Benitez; Vicente Coll-Serrano |
| Abstract: | deaR is a recently developed R package for data envelopment analysis (DEA) that implements a large number of conventional and fuzzy models, along with super-efficiency models, cross-efficiency analysis, Malmquist index, bootstrapping, and metafrontier analysis. It should be noted that deaR is the only package to date that incorporates Kao-Liu, Guo-Tanaka and possibilistic fuzzy models. The versatility of the package allows the user to work with different returns to scale and orientations, as well as to consider special features, namely non-controllable, non-discretionary or undesirable variables. Moreover, it includes novel graphical representations that can help the user to display the results. This paper is a comprehensive description of deaR, reviewing all implemented models and giving examples of use. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.03766 |
| By: | Darul Wiyono; Deshinta Arrova Dewi; Ema Ambiapuri; Nur Aini Parwitasari; Deni Supardi Hambali |
| Abstract: | Purpose: This research explores the impact of Environmental, Social, and Governance (ESG) practices on employee performance and well-being in private higher education institutions in Bandung, West Java. It seeks to provide insights into how effective ESG integration can enhance organizational performance and employee satisfaction. Methodology: A quantitative approach employing Partial Least Squares Structural Equation Modeling (PLS-SEM) analyzed the relationships among constructs: environmental practices, social practices, governance practices, and the dependent variable, employee performance and well-being. Data were collected from 270 respondents through stratified random sampling across various administrative roles in 138 private higher education institutions. Findings: The results showed that environmental practices positively impact employee performance and well-being, with social practices also contributing. Governance practices mediate and amplify these effects. These findings emphasize the importance of integrating sustainable practices into organizational strategies to improve employee outcomes and overall institutional performance. Originality: This study explores the impact of ESG practices on employee performance in private higher education institutions, focusing on sustainability to enhance engagement and productivity. Unlike previous research, which focused primarily on corporate sectors or public universities, it emphasizes the unique challenges of private institutions, particularly in Bandung, offering new insights into governance practices as mediators. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.08201 |
| By: | Salazar, Lina; Bernal Hernandez, Sebastian; Miranda Baez, Luis Enrique |
| Abstract: | This study employs an experimental approach to estimate both the direct and indirect effects (i.e. spillovers) of an agricultural technology adoption program on small landholder farmers in Bolivia. Specifically, the evaluation focuses on the second phase of the "Creación de Iniciativas Agroalimentarias Rurales" (CRIAR) program, which aimed to increase agricultural productivity, income, and food security among smallholder farmers through technology adoption. Implementing a two-stage randomized experiment, the study uses instrumental variable (IV) analysis to measure the local average treatment effect (LATE) of the program. The survey sample includes 1, 684 farmers, consisting of direct beneficiaries, contaminated control households, and pure control households. Findings reveal statistically significant direct effects on household income, total production value, sales, technology adoption, and crop diversification. The results also suggest that most of the direct effects intensify over time. Furthermore, the analysis confirms the presence of spillover effects, supporting the hypothesis that farmers residing near program beneficiaries receive indirect benefits. |
| Keywords: | Agricultural Technology;Technology adoption;Agricultural productivity;food security;Smallholder farmers;Bolivia |
| JEL: | O13 O33 Q12 Q16 Q18 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14133 |
| By: | Rachid Maghniwi (UM5 - Université mohamed 5, Rabat); Mustapha Oukassi (University Mohamed V, Rabat) |
| Abstract: | This study examines the effectiveness of the Asset-Liability Management (ALM) approach in improving the profitability of Moroccan banks during the COVID-19 crisis. Faced with unprecedented challenges posed by the pandemic, the Moroccan banking sector had to adapt quickly to maintain its financial stability and profitability. Our research focuses on the period 2019-2022, encompassing the pre-crisis, acute crisis, and immediate post-crisis phases. Using the Structural Equation Modeling method, we analyzed a comprehensive set of financial and operational data collected from the eight main Moroccan banks, representing over 80% of the national banking market. Our findings suggest that ALM played a crucial role in stabilizing bank profitability during this turbulent period, with a significant positive correlation between ALM implementation effectiveness and several performance indicators, including net interest margin, return on assets (ROA), and return on equity (ROE). Banks that adopted more sophisticated ALM approaches demonstrated a better ability to manage liquidity and interest rate risks, with larger banks benefiting more from their ALM systems. This research contributes to filling both theoretical and empirical gaps in the literature, providing a framework for understanding ALM effectiveness in the context of a global crisis. |
| Abstract: | Cette étude examine l'efficacité de l'approche de gestion actif-passif (ALM) dans l'amélioration de la rentabilité des banques marocaines pendant la crise de la COVID-19. Face aux défis sans précédent posés par la pandémie, le secteur bancaire marocain a dû s'adapter rapidement pour maintenir sa stabilité financière et sa rentabilité. Notre recherche se concentre sur la période 2019-2022, englobant les phases pré-crise, crise aiguë et post-crise immédiate. Utilisant la méthode des équations structurelles, nous avons analysé un ensemble complet de données financières et opérationnelles collectées auprès des huit principales banques marocaines, représentant plus de 80% du marché bancaire national. Nos résultats suggèrent que l'ALM a joué un rôle crucial dans la stabilisation de la rentabilité bancaire durant cette période turbulente, avec une corrélation positive significative entre l'efficacité de l'implémentation de l'ALM et plusieurs indicateurs de performance, notamment la marge nette d'intérêt, le rendement des actifs (ROA) et le rendement des capitaux propres (ROE). Les banques ayant adopté des approches ALM plus sophistiquées ont démontré une meilleure capacité à gérer les risques de liquidité et de taux d'intérêt, les grandes banques ayant particulièrement bénéficié de leurs systèmes ALM. Ces résultats soulignent l'importance de l'ALM dans la gestion des risques et l'optimisation des performances financières, particulièrement en période de crise. |
| Keywords: | ALM, banques marocaines, COVID-19, rentabilité, gestion des risques, performance financière, liquidité, Moroccan banks, profitability, risk management, financial performance, liquidity |
| Date: | 2025–05–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05081332 |
| By: | Ceballos-Sierra, Federico; Wiegel, Jennifer; Gómez, Miguel; Colindres, Mirian |
| Abstract: | This scoping study delves into the critical aspects of the coffee industry in Honduras, a major global coffee producer. It explores the significant growth in Honduran coffee production and productivity, while contrasting these achievements with rising environmental and social sustainability concerns. Key issues include the impact of climate change on coffee suitability, increasing rural poverty despite growing export values, and the challenges in maintaining consistent coffee quality and fair profit distribution along the supply chain. The study aims to review the agricultural policy context, describe the global coffee value chain (GVC), and identify constraints hindering production efficiency and inclusivity. It proposes interventions focusing on vertical coordination, quality improvement, digital innovations for traceability, and market information access, with special emphasis on environmental sustainability and gender and youth inclusion. The study utilizes an extensive literature review and inter views with sector stakeholders to analyze the dynamics within the Honduran coffee supply chain, identifying critical bottlenecks and potential solutions. The findings highlight issues in informal labor markets, oligopsonistic market conditions, and the need for improved contracting between international buyers and domestic sellers. The study sets the stage for detailed examination and intervention strategies in subsequent sections, aiming to enhance the overall performance and sustainability of the Honduran coffee industry. |
| Keywords: | coffee beans; agricultural productivity; sustainability; climate change; rural poverty; value chains; Honduras; Central America |
| Date: | 2024–02–07 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cgiarp:139059 |
| By: | Melanie Arntz; Michael J. Bohm; Georg Graetz; Terry Gregory; Florian Lehmer; Cacilia Lipowski |
| Abstract: | We investigate the diffusion of frontier technologies across German firms before and during the Covid-19 crisis. Our analysis tracks the nature, timing, and pandemic-related motivations behind technology investments, using tailor-made longitudinal survey data linked to administrative worker-firm records. Technologies adopted after the onset of the pandemic increasingly facilitated remote work and mitigated the negative employment effects of the crisis. Overall, however, investments in frontier technologies declined sharply, equivalent to a loss of 1.4 years of pre-pandemic investment activity. This procyclical adoption pattern is particularly striking since the pandemic created clear incentives to experiment with new technologies. Our findings highlight how short-run fluctuations may influence medium-run economic growth through their impact on technology diffusion. |
| Keywords: | frontier technology investments, firm-level survey data, cyclicality of technology adoption, Covid-19 crisis |
| Date: | 2025–04–16 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2093 |
| By: | Gellerstam, Julia (Department of Real Estate and Construction Management, Royal Institute of Technology); Palmquist, Lisa (Department of Real Estate and Construction Management, Royal Institute of Technology); Hermansson, Cecilia (Department of Real Estate and Construction Management, Royal Institute of Technology) |
| Abstract: | This study investigates whether energy use and recommended efficiency measures are capitalized into office building transaction prices in Sweden, amid the European real estate sector’s transition following the Energy Performance of Buildings Directive (EPBD). Using eight years of transaction data and a hedonic pricing model, the analysis quantifies the relationship between energy-related characteristics and market value. Complementary interviews with energy consultants provide insights into how energy measures are interpreted and applied in practice. Results show that while energy efficiency is increasingly considered in investments, its influence on prices is limited and varies across segments. Unexpectedly, higher energy use correlates with higher prices in some cases. A 1% increase in energy use corresponds to a 0.22% price increase per square meter, especially in older buildings and peripheral areas. This suggests energy inefficiency may be offset by other value drivers, such as location, historical character and redevelopment potential. The market response to EPC-recommended measures is more nuanced. Construction-related upgrades can command premiums in older buildings due to their future value potential. Conversely, installation measures are often viewed as costly liabilities, leading to price discounts. These findings reveal a distinction between flexible investment opportunities and immediate capital expenditures. By combining quantitative and qualitative methods, the study offers a comprehensive assessment of energy efficiency’s economic and operational dimensions. It contributes to the literature on green value premiums and provides actionable insights for stakeholders. At the same time, it highlights the specific dynamics of a low-energy-price context like Sweden. This adds important geographical nuance to a field often dominated by evidence from higher-cost markets. |
| Keywords: | Energy use; energy efficiency; commercial real estate; transaction price; energy efficiency measures; EPBD |
| JEL: | D25 D81 Q40 Q51 R32 |
| Date: | 2025–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:kthrec:2025_004 |
| By: | Damián Tojeiro-Rivero (Employment observatory, Department of Economics, University Rovira i Virgili, Spain.); Rosina Moreno (AQR-IREA Research Group, Department of Econometrics, Statistics and Applied Economics, Universitat de Barcelona, Spain.) |
| Abstract: | Prior literature has argued that, although both captive knowledge sourcing (CKS) and non-captive knowledge sourcing (NCKS) are effective strategies for enhancing firm innovativeness, the former plays a more defined role in determining the likelihood of a firm achieving product innovations. However, we contend that the focus should not only be on the decision to innovate but, more importantly, on the profitability firms derive from such innovations. Given that knowledge acquired from external sources can provide firms with ideas that differ from their existing competencies, NCKS may be more advantageous, as the resulting innovations are likely to exhibit higher levels of novelty. Additionally, we examine the complementarity or substitutability between CKS and NCKS in driving innovation. Our findings for Spanish firms suggest that NCKS yields greater benefits than CKS. Moreover, adopting both strategies simultaneously does not result in higher benefits; instead, a minimum threshold of NCKS, above the median, is necessary to realize observable gains. This indicates that firms must demonstrate a substantial level of commitment to NCKS to effectively exploit its potential for generating returns from their most novel innovations. |
| Keywords: | Radical Innovation, Captive Knowledge Sourcing; Non-Captive Knowledge Sourcing; Spanish firms; Panel data; Complementarity/Substitutability. JEL classification: |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ira:wpaper:202508 |
| By: | Yue Gao; Jing Zhang |
| Abstract: | Smart grids enable the alignment of energy supply and demand, enhance energy efficiency, and raise consumer awareness of energy conservation. Smart meter, a vital technological component of smart grids, enables bidirectional communication between consumers and utility companies. This paper employs the two-stage least squares panel data model to examine the effects of federal funding and state legislative actions on smart meter adoption and the resulting energy efficiency savings in the residential sector of the United States. Additionally, we use machine learning techniques to select the subset of control variables that are influential for smart meter adoption and energy efficiency savings. The findings suggest that both federal financial assistance and state legislative actions have positive effects on smart meter adoption, and the interaction of federal funding and state policy interventions have a significantly greater effect on adoption as compared to the sum of the individual policy instrument alone. Furthermore, there exists a positive association between the adoption rate and energy efficiency savings. This study presents empirical evidence that underscores the significance of multi-level governance as an effective means for policy integration regarding smart meter adoptions, and it discusses the policy implications for grid modernization and environmental policies. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.05596 |
| By: | Miguel Faria-e-Castro; Julian Kozlowski; Jeremy Majerovitz |
| Abstract: | We develop a methodology to estimate the cost of capital using credit registry microdata, and apply it to study capital allocation efficiency in the United States. Our measure incorporates the contractual interest rate, expected default probability, recovery rate, and expectations of future rates. We estimate three distinct rates: (i) the lender's discount rate, (ii) the firm's cost of capital, and (iii) the social cost of capital. We derive a sufficient statistic for misallocation based on the first and second moments of the social cost of capital. Dispersion in this rate captures both heterogeneity in lender discounting and the presence of financial frictions. Normal times feature modest amounts of misallocation, corresponding to an output loss of 0.5%. However, during the 2020-2021 period, misallocation increased to 1.1%, primarily due to the underpricing of riskier loans. |
| Keywords: | cost of capital; misallocation; macrofinance |
| JEL: | D24 E22 E44 O47 O51 |
| Date: | 2025–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedlwp:100099 |