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on Efficiency and Productivity |
| By: | Mamun, Abdullah |
| Abstract: | The agriculture sector receives substantial fiscal subsidies in various forms, including through programs that are linked to production and others that are decoupled. As the sector has reached the technology frontier in production over the last three decades or so, particularly in high- and middle-income countries, it is intriguing to investigate the impact of subsidies on productivity at aggregate level. This study examines the impact of subsidies on productivity growth in agriculture globally using a long time series on the nominal rate of assistance for 42 countries that covers over 80 percent of agricultural production. The econometric results show heterogenous effects from various subsidy instruments depending on the choice of productivity measure. Regression results suggest a strong positive effect of input subsidies on both output growth and labor productivity. A positive but relatively small impact of output subsidies is found on output growth only. Subsidies that are mostly decoupled reveal no significant impact on any of the productivity measures. |
| Keywords: | agricultural productivity; agricultural technology; econometrics; globalization; input output analysis; subsidies |
| Date: | 2024–03–28 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:gsspwp:140668 |
| By: | Ziesemer, Thomas (Mt Economic Research Inst on Innov/Techn, RS: GSBE MORSE) |
| Abstract: | Macroeconomic productivity is modelled as a Cobb-Douglas function of private and public R&D stocks in recent literature. The slope parameters of a growth rate version may change over time and with circumstances. Using the method of functional-coefficient regression, we show that human capital, GDP (per worker), services and defence R&D (both % GDP), lags of domestic and foreign private and public R&D, and lagged labour-augmenting technical change, all in growth rates, change the elasticities of productivity. The result is a panel data set of regression coefficients representing elasticities of productivity. Eventually, the panel average of the productivity elasticities of domestic and foreign private R&D goes to constant values; elasticities of public R&D go down slightly. This may contribute to an explanation of the productivity slowdown and why private R&D has been expanded relative to public R&D in recent years. |
| JEL: | O33 O47 |
| Date: | 2025–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025017 |
| 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 percent. 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 U.S. |
| Keywords: | Management practices; mergers and acquisitions; productivity; competition |
| JEL: | L2 M2 O32 O33 |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:101259 |
| By: | Jeremy Pearce; Liangjie Wu |
| Abstract: | This paper studies the relationship between market concentration and aggregate productivity when firm-level demand emerges from past marketing investments. Granular firms may invest in demand both to complement their productivity and to amplify market power—this second force can create persistent mismatch between customer capital and productivity. The importance of this mismatch depends on the relative persistence of productivity and demand. Empirically, we find that demand is more persistent than productivity, implying a sizable role for mismatch. This leads to sluggish demand-side adjustment in the face of productivity shocks in the quantified model. Policies targeting static markup distortions—such as production subsidies—can exacerbate excessive marketing and thus are subject to a tradeoff between static gains and dynamic losses. |
| Keywords: | firm dynamics; productivity; demand; customer capital; market concentration; competition; innovation |
| JEL: | O31 O32 O34 O41 D22 D43 |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:101336 |
| By: | Filippo Belloc; Antonino Lofaro |
| Abstract: | We investigate how government subsidies influence the productivity of new firms, by leveraging data on more than 30, 000 government subsidy initiatives and about 1.2 million manufacturing firms distributed worldwide in the years 2012- 2019. First, using a DiD framework with multiple time periods, we document that sectors exposed to subsidies experience a statistically significant increase in new firm entry rates. We then examine the firm-level data through a series of augmented 3-way FE DiD models. Our findings reveal that subsidies have significant effects on the productivity of new firms. On average, subsidies lead to the entry of new firms with 5.53% lower productivity compared to those entering untreated markets. The productivity gap of new firms in subsidized markets persists in the years after entry. We also apply a text recognition method to analyze the effects of specific subsidy attributes. We find that unconditional tax breaks and loans are mostly responsible for the negative effects of subsidies, while subsidies promoting firm internationalization and investments by small firms may lead to the establishment of more productive firms. Subsidies aimed at supporting the adoption of green and automation technologies do not always reduce the productivity of new firms. |
| Keywords: | Government subsidies; Firm entry; Diff-in-diff methods Jel Classification:C20, H20, L52 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:927 |
| By: | Kostarakos Ilias (European Commission - JRC); Marques Santos Anabela (European Commission - JRC) |
| Abstract: | This report focuses on the assessment of the economic performance of selected industrial ecosystems. IN particular, it offers an in-depth discussion of the developments across those ecosystems that exhibited the largest shares of total Gross Value Added in 2019, the year prior to the eruption of the pandemic-induced shock. The analysis is conducted across three levels of aggregation, namely EU-wide, country-level and the NUTS2 regional level. Moreover, an analysis of the recent trends in labour productivity for the ecosystems is offered. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:termod:202507 |
| By: | Ulrich Doraszelski; Li Lixiong |
| Abstract: | We advance the proxy variable approach to production function estimation. We show that the invertibility assumption at its heart is testable. We characterize what goes wrong if invertibility fails and what can still be done. We show that rethinking how the estimation procedure is implemented either eliminates or mitigates the bias that arises if invertibility fails. Furthermore, we show how a modification of the procedure ensures Neyman orthogonality, enhancing efficiency and robustness by rendering the asymptotic distribution of the GMM estimator in the second step of the estimation procedure invariant to estimation noise from the first step. |
| JEL: | D24 L10 O3 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33939 |
| By: | Francesco Principe (University of Bergamo); Jan van Ours (Erasmus University Rotterdam and Tinbergen Institute) |
| Abstract: | We study labor market dynamics of workers in a highly competitive industry, focusing on the relationship between workers' age, wages, and productivity. Our analysis uncovers an inverse U-shaped relationship. While some wage adjustments occur within the current firm, job mobility plays a crucial role in shaping wage trajectories. There is assortative matching with highly productive workers moving to highly productive firms, while less productive workers gravitate towards less productive firms. Our findings suggest that both in-firm wage progression and wage growth via job mobility contribute to a close alignment between wages and productivity throughout workers' careers. |
| Keywords: | Age-wage profile, productivity, job mobility |
| JEL: | J31 J62 Z22 |
| Date: | 2025–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:tin:wpaper:20250020 |
| By: | Shrawan, Aakanksha (National Institute of Public Finance and Policy); Rahangdale, Nikhil (National Institute of Public Finance and Policy); Amar Nath H K (National Institute of Public Finance and Policy) |
| Abstract: | The paper is an attempt to find the determinants of own sources of revenue of Gram Panchayats, for eight Indian states and evaluates the efficiency of the collection of tax revenues given the availability of resources available to them. The paper disaggregates the own source revenue data into two major sub-components i.e., property tax and other taxes/user charges, using the primary data collected for the years 2020-21, 2021-22, 2022-23 and 2023-24. The size of the population and the extent of commercial activities play a significant role in driving the own source revenues of the Gram Panchayats. However, the distance from the nearest town is a deterrent in the property tax collections of the villages. A look into the efficiency of revenue collection by the Gram Panchayats reveals that the mere presence of staff, pucca houses and commercial establishments does not guarantee efficient collection of own source revenue. The efficient utilisation of the available resources is also dependent on the political willingness, innovative practices, efficient governance and financial autonomy of the Gram Panchayats. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:npf:wpaper:25/427 |
| By: | Pinka Chatterji; Chun-Yu Ho; Wenqing Li |
| Abstract: | This paper tests whether mergers between nursing home chains and independent facilities affect quality of care using facility-level data from 1999-2019. Staggered difference-in-differences estimates suggest that acquired facilities experience a 5% reduction in health deficiency citations 2 years post-merger. This improvement relies on the continuous supply of efficiency from chains; persists for four years; and is specific to mergers between chains and independent homes. Quality effects are driven by mergers involving smaller, higher-quality and non-private-equity-owned chains. A structural model suggests that the quality effect is generated by enhanced cost efficiency achieved by facilities serving larger numbers of residents after mergers. |
| JEL: | I11 L11 L15 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33967 |
| By: | Cherkaoui El Hamdani (UM5 - Université Mohammed V de Rabat [Agdal]); Benaissa Nahhal (CRIISEA - Centre de Recherche sur les Institutions, l'Industrie et les Systèmes Économiques d'Amiens - UR UPJV 3908 - UPJV - Université de Picardie Jules Verne) |
| Abstract: | This research analyzes the determinants of the financial performance of the main Moroccan banking subsidiaries operating in the WAEMU zone, comprising ten subsidiaries that belong to the three major Moroccan banking groups (AWB, BOA, and BCP). Using a panel data econometric approach, the study estimates fixed and random effects models to identify the significant impact of internal variables such as loan volume, balance sheet size, and credit risk on profitability (measured by ROA and ROE). In contrast, macroeconomic variables appear to play a less decisive role. The findings provide strategic insights for Moroccan banks seeking to optimize their expansion in West Africa. |
| Abstract: | Cette recherche analyse les déterminants de la performance financière des principales filiales bancaires marocaines implantées dans la zone UEMOA, qui sont au nombre de dix filiales, qui représentent les trois groupes bancaires marocains (AWB, BOA et BCP), en mobilisant une approche économétrique en données de panel. À travers l'estimation de modèles à effets fixes et aléatoires, l'étude identifie l'impact significatif de variables internes telles que le volume des crédits, la taille du bilan et le risque de crédit sur la rentabilité (ROA et ROE). Les variables macroéconomiques apparaissent moins déterminantes. Les résultats offrent des pistes stratégiques pour les banques marocaines désirant optimiser leur implantation en Afrique de l'Ouest. |
| Keywords: | Performance bancaire, ROA, ROE, données de panel, UEMOA, banques marocaines JEL Classification : G20, G24. Type du papier : Recherche Empirique Banking performance, panel data, Moroccan banks JEL Classification: G20, G24. Paper type: Empirical Research |
| Date: | 2025–05–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05072282 |
| By: | Pablo Acevedo; Elias Albagli; Gonzalo García-Trujillo; María Antonia Yung |
| Abstract: | This project uses unique Chilean administrative data to shed light on how production networks might play a key role in shaping the macroeconomic impacts of green transition policies. First, using customs and firm-to-firm transaction data that covers the universe of firms in Chile, we build the fossil fuel consumption and the direct CO2 emissions at the firm, sectoral, and aggregate levels. In line with the official national sources, the electricity generation sector is the most important contributor to aggregate CO2 emissions, followed by the manufacturing, transport, and mining sectors. Then, we study the role of input-output linkages in propagating CO2 emissions to the rest of the economy. To do so, we construct the production network and the carbon footprint at the firm level using firm-to-firm transaction data from the Chilean IRS, and we validate our results with the input-output tables approach used in the literature. The results show that the electricity generation sector is central in the network, with potentially important downstream spillover effects, while the mining sector is located in the outer part of the network with rich upstream connections. Also, we show that the copper mining industry is the most exposed one to a carbon tax scheme implemented on all the firms in the economy and also to one that only targets the electricity generation sector. |
| Keywords: | carbon emissions, production network, carbon footprint, downstream and upstream propagation, administrative firm-level data |
| JEL: | E01 D24 D57 E23 H23 Q54 Q56 Q58 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1277 |
| By: | Bambe, Bao-We-Wal; Ouedraogo, Adama |
| Abstract: | This paper examines the effect of public expenditure efficiency on FDI inflows, using data on a panel of 100 developing countries from 1990 to 2017. We find robust evidence that improvements in public expenditure efficiency significantly increase FDI inflows. This effect is complementary to institutional quality, per capita income and binding fiscal frameworks such as fiscal rules. Our findings highlight that, in addition to promoting the sustainability of public finances, the efficient use of public resources can exert significant positive spillover effects on the attractiveness of developing countries to foreign investors. |
| Keywords: | Public expenditure efficiency, Foreign direct investment, Developing countries |
| JEL: | E6 F21 H6 O11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:diedps:319874 |
| By: | Asa Watten; Soren T. Anderson |
| Abstract: | Cars have gotten bigger and faster yet more fuel efficient in recent decades. Why? We estimate an equilibrium model of car attribute production using U.S. household microdata for 1995–2017 and structurally decompose attribute trends into underlying mechanisms. We find that technical change led to gains in all attributes. Rising gas prices boosted efficiency but were offset by surging demand for size and acceleration. Efficiency standards were largely ineffective. We show that using technology alone to meet tighter standards quadruples compliance costs, while half the efficiency gain from a fuel-saving technology subsidy is reallocated to other attributes in equilibrium. |
| JEL: | L62 O3 Q4 R4 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33979 |