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on Efficiency and Productivity |
| By: | Paolo E. Giordani; Alberto Petrucci; Alberto Franco Pozzolo |
| Abstract: | This paper investigates the impact of physical infrastructures on sectoral total factor productivity (TFP). In the first part, a neoclassical growth model with multiple productive sectors and public capital (in the form of infrastructures) uncovers a long-run relationship between infrastructures and sectoral TFP. In the second part, a panel-cointegration analysis evaluates the long-run impact of 4 distinct types of infrastructures-transport, energy, ICT, health-on the TFPs of 22 manufacturing sectors in a sample of 65 (developed and emerging) countries between 1995 and 2018. We find that infrastructures are a positive and significant determinant of sectoral TFPs. A panel error-correction model also confirms that causality runs from infrastructures to TFPs. These results are robust to further empirical analysis conducted on sub-samples segmented by several dimensions. Our findings can inform policy in designing targeted interventions and prioritizing investment. |
| Keywords: | Public infrastructures, Sectoral productivity, Total factor productivity (TFP), Panel cointegration, Trade-based TFP estimation, Panel error correction |
| JEL: | E22 H54 O47 O33 C33 |
| Date: | 2025–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:csl:devewp:505 |
| By: | Baraldi, Anna Laura; Cantabene, Claudia; de Iudicibus, Alessandro; Fosco, Giovanni; iacopo, Grassi |
| Abstract: | This paper investigates the fiscal consequences of EU-funded waste management projects on local taxation in Italian municipalities. Using a difference-in-differences approach on panel data from 2007 to 2023, we find that municipalities receiving EU cohesion funds experienced a significant increase in per-capita waste taxes, driven by rising service costs. A decomposition of these costs reveals that while separate waste collection expanded — in line with sustainability goals — the associated logistical and operational expenses increased sharply. Conversely, although the vol- ume of unsorted waste declined, disposal costs rose, likely due to lower quality and more complex treatment requirements. To assess whether cost increases reflected inefficiency or technological progress, we estimate total factor productivity changes via a non-parametric Malmquist index. The results indicate substantial productivity gains in sorted waste management, mostly from technological advancement, but also suggest transitional inefficiencies. Our findings highlight the need for more integrated investment strategies to balance environmental goals with fiscal sustainability. |
| Keywords: | U Cohesion Policy, Waste Management, Local Public Finance, En- vironmental Taxation, Service Costs, Efficiency and Productivity |
| JEL: | H23 H72 Q58 R53 |
| Date: | 2025–06–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125150 |
| By: | Chatterjee, Sidharta |
| Abstract: | The research examines productivity and productive capital formation and the dynamic interplay between various factors of productivity. We attempt to derive a metaphysical perspective on the theory of productivity in relation to human capital formation. A simple model of productivity function has been designed to explain the underlying principles. |
| Keywords: | Productivity, productive capital, noetic space, intangible resources, habit formation |
| JEL: | L2 O40 |
| Date: | 2025–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125316 |
| By: | Conteduca, Francesco Paolo; Panon, Ludovic |
| Abstract: | Can firm-level markup adjustments affect the aggregate cost of large, localized shocks? Using firm-level data from Italy, we show that natural disasters lead to a persistent decline in markups among affected manufacturing firms, especially for high-productivity ones. We implement an oligopolistic competition model with idiosyncratic shocks directly on firm-level data and invert it to recover productivity for firms impacted by the 2012 Northern Italy earthquake. We then quantify how markup adjustments shape aggregate manufacturing productivity and welfare. Our baseline results suggest that markup changes amplified the aggregate productivity and welfare losses of the earthquake by approximately 20%. |
| Keywords: | Natural Disasters, Markups, Oligopolistic Competition, Aggregate Productivity, Misallocation, Firm Heterogeneity |
| JEL: | D22 D43 O47 Q54 |
| Date: | 2024–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125324 |
| By: | Jean-Joseph Minviel (UMRH - Unité Mixte de Recherche sur les Herbivores - UMR 1213 - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Marc Benoit (UMRH - Unité Mixte de Recherche sur les Herbivores - UMR 1213 - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laure Latruffe (BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Reducing the negative environmental impact of production activities without (substantial) loss of production is a crucial challenge for the agricultural sector. Investigating farms' environmental and technical efficiency (TE) levels and drivers can contribute to addressing this issue. In this regard, based on recent theoretical developments on the appropriate handling of undesirable outputs in the modeling of production technologies, this paper introduces a multi-equation stochastic frontier framework for technical and environmental efficiency (EE) analysis. This framework is applied to a sample of French suckler sheep farms. The results indicate that, on average, farms in the sample can increase their desirable output by 20% without using more inputs while reducing their greenhouse gas emissions by 24%. Findings also show that relatively high (low) levels of TE are associated with relatively low (high) levels of EE and that the likelihood for a farm to be both technically and environmentally efficient is relatively low. Only 32% of the farms in the sample have a high level of TE and EE. Drivers such as decoupled direct payments are positively associated with EE and negatively associated with TE, while no significant effect is found for green direct payments. |
| Abstract: | La réduction des impacts environnementaux négatifs des activités de production sans perte (substantielle) de production est un défi crucial pour le secteur agricole. L'étude des niveaux et des facteurs d'efficience environnementale et technique des exploitations agricoles peut contribuer à résoudre ce problème. À cet égard, sur la base de développements théoriques récents concernant le traitement approprié des outputs indésirables dans la modélisation des technologies de production, cet article introduit une approche de frontière stochastique multi-équations pour l'analyse de l'efficience technique et environnementale. Ce cadre est appliqué à un échantillon d'exploitations françaises d'élevage d'ovins allaitants. Les résultats indiquent qu'en moyenne, les exploitations de l'échantillon peuvent augmenter leur production de viande de 20 % sans utiliser davantage d'intrants, tout en réduisant leurs émissions de gaz à effet de serre de 24 %. Les résultats montrent également que des niveaux relativement élevés (faibles) d'efficience technique sont associés à des niveaux relativement faibles (élevés) d'efficience environnementale et que la probabilité qu'une exploitation soit à la fois efficiente sur le plan technique et environnemental est relativement faible. Seulement 32% des exploitations de l'échantillon ont un niveau élevé d'efficience technique et environnementale. Des facteurs tels que les paiements directs découplés sont positivement associés à l'efficience environnementale et négativement associés à l'efficience technique, tandis qu'aucun effet significatif n'est constaté pour les paiements directs verts. |
| Keywords: | by-production technologies, environmental and technical efficiency, generalized maximum entropy, info-metrics, multi-equation stochastic frontier, Efficience environnementale et technique, technologies de sous-production, frontière stochastique multi-équations, info-métrie, entropie maximale généralisée |
| Date: | 2024–12–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05104134 |
| By: | Sara Amoroso; Randolph L. Bruno; Laura Magazzini |
| Abstract: | This paper identifies the dichotomous role (bright and dark sides) of Intellectual Property Rights (IPR) protection on labor productivity among highly innovative globalised firms. The role of appropriability conditions -such as IPR protection- as "Schumpeterian" incentive to innovation has been largely explored in the empirical literature. In this paper, we contribute to this strand explore the role of appropriability conditions on firm labor productivity under different configurations of R&D activities in highly globalized companies. In line with the literature, we show that labor, capital and R&D investments lead to productivity gains, and that the strength of the patent system the firm is embedded into is positively linked to the firm’s labor productivity too. We call this the 'bright side' of IPR. However, stronger intellectual property rights might have a detrimental effect on the R&D returns, which appear to be maximized around the median level of IPR protection. In other words, too much protection might actually reduce R&D returns, again in line with the "Schumpeterian prediction". Then, we call this the ‘dark side’ of IPR. To our knowledge, this is the first paper highlighting such dichotomy (bright and dark sides of IPR) on a purpose-built high-quality database of globalized firms, which tend to be the most innovative firms in the world. |
| Keywords: | panel data, appropriability, productivity |
| Date: | 2025–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2025/26 |
| By: | Laurence Jacquet; Stéphane ROBIN (CY Cergy Paris Université, THEMA) |
| Abstract: | We re-examine the R&D - innovation - productivity nexus in 8 EU countries in the context of a possible EU-wide "super deduction" on R&D expenditures, using panels of industries with a long time dimension. We introduce dynamics in the innovation production function and extended production function models, taking the availability/unavailability of R&D tax credits (R&DTC) into account. Our benchmark estimates, obtained with panel ARDL models, yield positive longrun elasticities of innovation and productivity with respect to R&D intensity. R&D conducted under an R&DTC either reinforces an already-existing positive elasticity or makes it significantly positive if it was not before. Disentangling the respective effects of ’pure’ business R&D and of government-supported R&D reveals a wider diversity of situations, however. The effect of R&DTC is less often significant, sometimes superseded by other forms of public support to R&D. The main policy implication of these results is that a harmonized "super-deduction" on R&D at the EU level may be slightly premature. Complementary analyses suggest that targeting specific industries may make such a policy more effective and accurate. |
| Keywords: | Innovation, Productivity, Dynamic Panel Data Models, Public Support to R&D, European Science and Technology Policy |
| JEL: | O30 O38 H25 H54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ema:worpap:2025-09 |
| By: | Martin Neil Baily; David M. Byrne; Aidan T. Kane; Paul E. Soto |
| Abstract: | With the advent of generative AI (genAI), the potential scope of artificial intelligence has increased dramatically, but the future effect of genAI on productivity remains uncertain. The effect of the technology on the innovation process is a crucial open question. Some inventions, such as the light bulb, temporarily raise productivity growth as adoption spreads, but the effect fades when the market is saturated; that is, the level of output per hour is permanently higher but the growth rate is not. In contrast, two types of technologies stand out as having longer-lived effects on productivity growth. First, there are technologies known as general-purpose technologies (GPTs). GPTs (1) are widely adopted, (2) spur abundant knock-on innovations (new goods and services, process efficiencies, and business reorganization), and (3) show continual improvement, refreshing this innovation cycle; the electric dynamo is an example. Second, there are inventions of methods of invention (IMIs). IMIs increase the efficiency of the research and development process via improvements to observation, analysis, communication, or organization; the compound microscope is an example. We show that GenAI has the characteristics of both a GPT and an IMI—an encouraging sign that genAI will raise the level of productivity. Even so, genAI’s contribution to productivity growth will depend on the speed with which that level is attained and, historically, the process for integrating revolutionary technologies into the economy is a protracted one. |
| Keywords: | Artificial Intelligence; Machine Learning; Productivity; Technological Growth |
| JEL: | C45 O31 O33 O40 |
| Date: | 2025–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-53 |
| By: | Nuobu Renzhi (Capital University of Economics and Business); John Beirne (Asian Development Bank) |
| Abstract: | This paper examines the impact of monetary policy shocks on firm-level productivity across 32 emerging market economies from 2000 to 2023, using panel local projections and a comprehensive firm-level dataset. We identify exogenous monetary policy shocks using a forward-looking Taylor rule and analyze their dynamic impact on total factor productivity. The results indicate a significant and persistent decline in productivity following a monetary-tightening shock. Crucially, financial frictions drive heterogeneous responses among firms: firms facing higher financial frictions experience more severe and prolonged productivity losses, whereas those with lower frictions recover more quickly. Additionally, firms characterized by low market power, younger age, or operation in financially vulnerable sectors, such as services, experience larger and longer-lasting productivity losses compared to their counterparts. Furthermore, we find asymmetric effects, whereby contractionary monetary shocks result in substantial productivity losses, while expansionary shocks fail to generate offsetting gains. |
| Keywords: | productivity;monetary policy;emerging markets |
| JEL: | D22 D24 E52 |
| Date: | 2025–07–18 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:021408 |
| By: | Ziesemer, Thomas (Mt Economic Research Inst on Innov/Techn, RS: GSBE MORSE) |
| Abstract: | We extend existing data sets for domestic and foreign private and public R&D stocks as well as labour-augmenting technical change data based on CES production functions. We cover slightly more periods and many more countries, now 44 up from 17. We consider panel unit root issues for a large sample of 41 countries and two smaller samples with 21 rich and 20 emerging economies. Autoregressive regressions show negative time trends in the growth rates of labour-augmenting technical change, domestic private and domestic and foreign public R&D stocks indicating the growth slowdown in the data period; foreign private R&D has a positive time trend. Cross-section dependence and cointegration tests support only triples of variables for the set of 21 countries with long data series. Coefficients of variations, calculated across countries for each year, show no or temporary signs of (in)equality trends for growth rates of private and public R&D, and productivity. |
| JEL: | O47 |
| Date: | 2025–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025018 |
| By: | Niccolò Murtas (University of Ferrara) |
| Abstract: | This study estimates an aggregate green knowledge production function (GKPF) for 19 OECD countries from 1981 to 2012, using panel-data econometric methods to address spatial spillovers and unobserved heterogeneity. Both Cobb-Douglas and translog functional forms are evaluated with multiple estimators, including standard fixed and random effects models, pooled and mean group common correlated effects (CCE) estimators, and random-trend models to account for shared upward trends among variables. The regression analysis examines the relationship between green patenting and key determinants such as R&D expenditure, human capital, and environmental policy indicators. The results consistently show a robust positive effect of domestic R&D, whereas the impacts of other factors exhibit greater variability. Methodologically, the findings highlight the sensitivity of coefficient estimates to unobserved heterogeneity and the choice of functional form. |
| Keywords: | Green innovation, knowledge production function, panel data, spatial spillovers |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:0725 |
| By: | Qian Chen; Martín Bordón-Lesme; Jaume Freire González |
| Abstract: | Rebound effects from energy efficiency improvements have been widely studied over the past decades across different resources and regions using different approaches and data. This diversity has hindered comparability among studies. To date, no single study has globally estimated these effects within a common framework. This paper addresses this gap by providing estimates of direct and indirect rebound effects in 43 countries and five aggregated "rest of the world" regions using an Environmentally Extended Multiregional Input–Output (EEMRIO) model, which covers all the world. This comprehensive, data-consistent approach effectively captures spillover effects through interregional economic flows that have been overlooked in previous studies. Moreover, it improves result comparability and offers insights for previously unexamined regions. Our findings indicate that in most countries, increased energy use due to households' re-consumption surpasses expected energy savings from efficiency improvements. When the efficiencies of coal, fuel, gas, electricity and all types of energy combined improve, the proportion of countries experiencing backfire (where the rebound effect exceeds 100%) is 81.25%, 56.25%, 68.75%, 56.25% and 56.25% respectively. These results highlight the critical need to control high rebound effects to achieve reductions in global energy consumption. |
| Keywords: | Rebound effect, sustainability, input output analysis, energy conservation |
| JEL: | C67 Q43 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1489 |
| By: | Mercure, Jean-Francois; Pollitt, Hector; Geels, Frank W.; Zenghelis, Dimitri |
| Abstract: | The low-carbon transition is generally portrayed as involving costs to the economy through lower productivity and generating benefits through avoided impacts of climate change. This mainstream economic narrative hinges on two critical assumptions that stem from an allocation perspective: that low-carbon technologies are more expensive than high-carbon ones, and that low-carbon investment displaces resources from their optimal allocation. However, evidence increasingly suggests that neither assumption may be true. Drawing on evolutionary and complexity economics and making different, empirically-supported, assumptions about innovation dynamics, structural change, and the endogenous creation of finance, this paper examines the impacts on UK labour productivity of a low-carbon transition in the power, transport and heat sectors using a coupled macro-econometric and technology model (E3ME-FTT). Using realistic assumptions, the model results show moderate but positive productivity increases in the transition that stem from technological learning-by-doing and productivity growth in specific sectors, which induces investments that ultimately lead to expanded economic capacity across the economy. |
| Keywords: | labour productivity; climate policy; economic growth; low-carbon transitions |
| JEL: | N0 R14 J01 |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128830 |
| By: | Sampi, James; Vostroknutova, Ekaterina |
| Abstract: | This paper examines the impact of two interventions by Colombia's competition authority to enforce competition in the sugar market on firm performance in downstream sectors. Using an exogenous identification strategy, the analysis finds that following the competition authority’s intervention against collusion in 2015, downstream firms expanded production but did not increase productivity or profitability margins, consistent with the removal of supply constraints imposed by cartelization. In contrast, the 2011 intervention against abuse of dominance increased the profitability margins of downstream firms, without altering production scale or labor intensity, consistent with input price reductions and stable consumer demand. Robustness checks, including propensity score matching, confirm the reliability of these findings. The results show that antitrust enforcement works through different channels, depending on the type of anti-competitive behavior. The results also highlight the importance of targeted and continuous antitrust enforcement in addressing market distortions. |
| Date: | 2025–06–26 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11155 |
| By: | Hassan Raad (LIU - Lebanese International University, LTeN - Laboratoire de Thermique et d’Energie de Nantes - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - EPUN - Nantes Université - Ecole Polytechnique de l'Université de Nantes - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université); Samer Ali (LGCgE - Laboratoire de Génie Civil et Géo-Environnement (LGCgE) - ULR 4515 - UA - Université d'Artois - Université de Lille - IMT Lille Douai - Ecole nationale supérieure Mines-Télécom Lille Douai - IMT - Institut Mines-Télécom [Paris] - JUNIA - JUNIA - UCL - Université catholique de Lille); Jalal Faraj (LIU - Lebanese International University, BIU - International University of Beirut); Cathy Castelain (LTeN - Laboratoire de Thermique et d’Energie de Nantes - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - EPUN - Nantes Université - Ecole Polytechnique de l'Université de Nantes - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université); Khaled Chahine (LIU - Lebanese International University, American University of The Middle East [Eqaila]); Mahmoud Khaled (LIU - Lebanese International University, BIU - International University of Beirut) |
| Abstract: | The pressing need for more effective solar technology is highlighted by the global transition away from fossil fuels and toward renewable energy sources. Despite the enormous potential of photovoltaic (PV) panels, efficiency losses in high-temperature conditions limit their performance. The purpose of this study is to theoretically evaluate the energy, financial, and environmental advantages of different water-cooling techniques intended to improve the sustainability and operating efficiency of PV panels. In contrast to traditional research, this work quantifies increases in energy output, cost savings, and CO2 emission reductions across various cooling configurations by a thorough parametric analysis inside a single theoretical framework. To simulate how various water-cooling methods affect PV panel performance, a mathematical parametric model was created. Energy production, cost savings, and carbon footprint reduction were among the key performance metrics computed and compared for PV applications in relation to the consumption ratio R, which is defined as the ratio of the actual building load to the maximum PV power output, or the amount of energy consumed by the house from the PV panels. With an annual energy gain of 1354.10R kWh per panel, cost savings of 582.26R USD, and CO2 emission reductions of 785.37R kg, jet water impingement cooling (JWPV) outperformed the other technologies under evaluation. However, with energy gains of 1061.53R kWh, savings of 456.46R USD, and CO2 reductions of 615.68R kg, evaporative cooling (EPV) produced the least amount of improvement. These results highlight how important efficient cooling is to improving PV panel performance and developing sustainable solar energy solutions. |
| Keywords: | CO2 emission reduction, Energy efficiency enhancement, Jet water impingement cooling, Photovoltaic panels, Sustainability in solar energy, Water cooling techniques |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05152611 |
| By: | Jun Cui |
| Abstract: | This study examines the relationship between AI-driven digital transformation and firm performance in Chinese industrial enterprises, with particular attention to the mediating role of green digital innovation and the moderating effects of human-AI collaboration. Using panel data from 6, 300 firm-year observations collected from CNRDS and CSMAR databases between 2015 and 2022, we employ multiple regression analysis and structural equation modeling to test our hypotheses. Our findings reveal that AI-driven digital transformation significantly enhances firm performance, with green digital innovation mediating this relationship. Furthermore, human-AI collaboration positively moderates both the direct relationship between digital transformation and firm performance and the mediating pathway through green digital innovation. The results provide valuable insights for management practice and policy formulation in the context of China's evolving industrial landscape and digital economy initiatives. This research contributes to the literature by integrating perspectives from technology management, environmental sustainability, and organizational theory to understand the complex interplay between technological adoption and business outcomes. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2505.11558 |