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on Efficiency and Productivity |
| By: | Zeng, Shipei; Parsons, Stephanie; Diewert, W. Erwin; Fox, Kevin J. |
| Abstract: | We find substantial differences in productivity growth and its drivers across the industries and regions of Australia. At the aggregate market sector level over a 35 year period to 2024-25, technical progress has been the only significant driver of productivity growth. This is heavily offset by growing inefficiency, leading the level of productivity to fall from 200304. Weighting industries by value added share, Mining, Construction and Electricity, gas, water and waste services are found to account for the bulk of the aggregate efficiency loss. Differences across states are less extreme than across industries, though the two most mining-intensive states have had strong technical progress with deteriorating efficiency. This diversity complicates the development of pro-productivity policies. To raise productivity growth in the short run, the results suggest that a focus on closing gaps to existing best practice may be an attractive alternative to investments in technological innovations. |
| Keywords: | productivity decomposition; technical progress; efficiency change; industry performance |
| JEL: | C43 D24 O47 |
| Date: | 2026–10–09 |
| URL: | https://d.repec.org/n?u=RePEc:eoe:escoed:escoe-dp-2026-14 |
| By: | Chun Pang Chow (Vancouver School of Economics, University of British Columbia (E-mail: alexccp@student.ubc.ca)); Hiroyuki Kasahara (Vancouver School of Economics, University of British Columbia (E-mail: hkasahar@mail.ubc.ca)); Atsuki Kotani (Department of Economics, Boston University (E-mail: atsuki@bu.edu)); Yoichi Sugita (Faculty of Business and Commerce, Keio University (E-mail: ysugita@fbc.keio.ac.jp)) |
| Abstract: | Conventional productivity estimation treats unobserved heterogeneity as a single efficiency term, conflating product quality with physical output efficiency. This paper shows that unobserved quality and quantity-based productivity (TFPQ) can be separately identified from panel data on prices, quantities, and inputs when the two latent variables exhibit differential persistence. A constructive nonparametric identification argument based on transformation models is developed, alongside a parametric estimator for implementation. Applied to Japanese cotton spinning (1914-1920), instrumenting for electric motor adoption with geographic variation in electricity grid access, quality increased by 1.5 percent per percentage point increase in electric motor share while TFPQ remained unchanged. Full electrification raised quality by nearly 60 percent relative to no adoption. |
| Keywords: | Production function, quality, productivity, electrification |
| JEL: | D24 L11 N65 O33 |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:ime:imedps:26-e-13 |
| By: | Xiaoqing CHEN (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, 210044, China.); Kristiaan KERSTENS (Univ. Lille, CNRS, IESEG School of Management, UMR 9221 - LEM - Lille ´Economie Management, F-59000 Lille, France.); Shirong ZHAO (Corresponding Author. School of Finance, Dongbei University of Finance and Economics, Dalian 116025, Liaoning, China.) |
| Abstract: | In this work, we assess the similarities between two nonconvex variable returns-to-scale nonparametric technologies: the traditional free disposal hull technology, and an alternative technology defined as the intersection of non-increasing and non-decreasing returns-to-scale technologies. The latter technology is slightly larger than the traditional free disposal hull, and it has rarely if ever been employed in empirical work. We also explore the differences between the corresponding two cost functions: the cost function based on the intersection of non-increasing and non-decreasing returns-to-scale cost functions is also larger than the traditional nonconvex variable returns to scale cost function and represents a new contribution to the literature. We define ways to compute both technologies and cost functions. We explore the empirical similarities between these two technologies and cost functions as well as their convex counterparts. We check whether both nonconvex technologies and cost functions make any differences in testing for convexity using a secondary data set: we still reject convexity under all circumstances. |
| Keywords: | Nonconvex Technologies; Intersection Frontier; Cost Functions; Technical Efficiency; Cost Efficiency; Allocative Efficiency |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e20260609 |
| By: | Nonnis, Alberto; Roth, Felix; Bounfour, Ahmed |
| Abstract: | The growing importance of intangible capital poses major challenges for its measurement in national accounts. This paper asks whether estimates of intangible investment are comparable across countries, examining France, Germany, Italy, the UK and the US. We assess reported estimates against independent, internationally harmonized sources: occupational data on ICT specialists and managers, wage data from the Structure of Earnings Survey, R&D composition data from ANBERD, and firm-level investment data from the EIB Investment Survey (EIBIS). We find that the largest cross-country gaps, particularly in software and organizational capital, are difficult to reconcile with the underlying distribution of inputs. France and Germany employ similar shares of ICT specialists yet report a threefold difference in software investment relative to value added, while the higher organizational capital recorded in France is not matched by its managerial wage structure. A micro-informed recalibration suggests that these measurement differences can materially affect cross-country productivity comparisons. |
| Keywords: | Intangible capital, Measurement, Labor Productivity, EU |
| JEL: | C82 D24 O47 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:uhhhdp:22 |
| By: | Jeremy Pearce |
| Abstract: | From the Great Recession until 2019, U.S. labor productivity growth disappointed. Nonfarm-business output per hour grew about 1 percent a year from 2010 to 2019, down from 3 percent in the late 1990s. This slowdown was especially pronounced in manufacturing, and it coincided with a slowdown in the growth of revenue per worker among public firms. However, since 2019, growth has picked up to twice the 2010s rate, around 2 percent. In this post, I use data from firms’ 10-K filings to unpack this recent acceleration. I first show that the acceleration appears in public firms’ revenue per worker, then document how the gains went into profit margins, and finally, what firm characteristics predicted significant profit margin increases. The increase in profit margins is consistent with ongoing declines in the labor share of output. |
| Keywords: | productivity; markups; innovation |
| JEL: | L2 O3 |
| Date: | 2026–10–15 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:103947 |
| By: | Shirong ZHAO (School of Finance, Dongbei University of Finance and Economics, Dalian, Liaoning, 116025, China); Kristiaan KERSTENS (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France); Tiantian REN (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France) |
| Abstract: | Statistical tests of the convexity assumption for full frontier technologies are still rather rarely applied. We employ existing order-a and order-m partial frontier estimators for production technologies. Since these partial frontier technology estimators have favourable statistical properties, this permits testing convexity using a simple statistical test comparing densities. Using a panel of electric power generation plants in the US we find strong evidence against convexity for most years using both order-a and order-m partial production frontiers. These new empirical results imply that empirical researchers must be cautious about invoking the –mostly implicit– convexity assumption when estimating technologies. Anyway, it is clear that convexity needs to be tested. |
| Keywords: | Convexity, Technology, Robust frontier, Partial frontier, Order-m, Order-a. |
| JEL: | C12 D24 |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e202604 |
| By: | Wildmer Daniel Gregori; Fabio Di Dio; Lorenzo Frattarolo; Maria Martinez-Cillero |
| Abstract: | We study how carbon pricing affects firms’ investment and capital productivity relative to comparable firms not exposed to environmental regulation. Using matched EUTL–Orbis data for European firms over 2005–2020, we estimate the effects of Phase 3 of the EU Emissions Trading System (EU ETS) on investment, productivity, and profitability through propensity-score matching and two-way fixed-effects difference-in-differences regressions. We find that ETS firms invest more than comparable non-ETS firms along both the intensive and extensive margins, while displaying lower measured capital productivity and no significant changes in total factor productivity, profitability, or fixed assets. To interpret this evidence, we develop a two-sector RBC model with abatement capital. In the regulated sector, firms accumulate a durable capital stock that reduces emissions intensity and future permit requirements but does not enter the production function. The model shows how carbon pricing can generate stronger investment in regulated firms while lowering measured capital productivity, highlighting the importance of distinguishing productive from compliance-related capital when evaluating the effects of environmental policy. |
| JEL: | E22 E32 Q52 Q58 C23 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ptu:wpaper:w202608 |
| By: | Xiaoqing CHEN (The Research Institute for Risk Governance and Emergency Decision-Making, School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing, 210044, Jiangsu, China. School of Management, Hefei University of Technology. Hefei, Anhui, 230009, China.); Kristiaan KERSTENS (Univ. Lille, CNRS, IESEG School of Management, UMR 9221 - LEM - Lille ´Economie Management, F-59000 Lille, France.); Shuqi XU (Corresponding author. College of Management, Hefei University, Hefei, Anhui, 230601, China.); Shirong ZHAO (Co-corresponding author. School of Finance, Dongbei University of Finance and Economics, Dalian, 116025, Liaoning, China.) |
| Abstract: | This paper challenges a central but rarely tested assumption in the by-production framework for modelling technologies that jointly generate desirable and undesirable outputs: the convexity of its constituent sub-technologies. We argue that imposing convexity without empirical validation may lead to misspecified frontiers and biased efficiency assessments. To address this gap, we employ a data-driven methodology that integrates traditional nonparametric frontier estimators with machine-learning based Efficiency Analysis Trees (EAT) and its convexified extension (CEAT). This combination allows us to flexibly approximate the production frontier under alternative geometric assumptions and, for the first time in the by-production literature, to statistically test convexity for each sub-technology using the Kneip-Simar-Wilson (KSW) procedure. Applying the approach to a panel of 119 Chinese cities over the period 2014-2021 and distinguishing between desirable outputs and undesirable outputs, we find a notable asymmetry: convexity is systematically rejected for the desirable-output sub-technology, whereas for the undesirable-output sub-technology the evidence is mixed, with convexity rejected in some years but not in others. These results caution against the routine imposition of convexity in byproduction models and provide a statistical foundation for hybrid estimation strategies. Moreover, we show that incorrect convexity assumptions produce substantial divergences in efficiency distributions, underscoring the practical relevance of testing and method choice. The proposed framework offers a robust tool for operational efficiency analysis in urban road traffic systems and other settings where joint production of desirable and undesirable outputs is present. |
| Keywords: | Operational inefficiency; Free disposal hull; Data envelopment analysis; Regression trees; Urban road traffic systems. |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e20260618 |
| By: | Hilda SALEH (Department of Mathematics, CT.C., Islamic Azad University, Tehran, Iran); Morteza SHAFIEE (School of Business and Law, Edith Cowan University, Perth, Australia); Kristiaan KERSTENS (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France. Corresponding author.) |
| Abstract: | This study proposes a nonconvex network data envelopment analysis model for evaluating efficiency in multi-stage supply chains under centralized and decentralized decision structures. Existing network DEA models typically rely on convexity assumptions, which limit their ability to capture indivisibilities and scale discontinuities inherent in real world supply chains. To address this gap, we develop a unified framework that accommodates nonconvex production technologies while enabling efficiency assessment at both the stage and the system levels. The model allows identification of coordination inefficiencies and structural performance differences across decision regimes. An empirical application to national wheat supply chains demonstrates significant efficiency variation across stages and decision units. It reveals that high efficiency at individual stages does not guarantee overall system efficiency. The results highlight the critical role of coordination in improving supply chain performance. The proposed framework provides a more realistic efficiency assessment tool and offers practical insights for improving resource allocation and operational coordination in complex supply chains. |
| Keywords: | Data Envelopment Analysis, Network, Nonconvex Technology, Centralized and Decentralized Systems, Wheat Supply Chain. |
| Date: | 2026–04 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e20260430 |
| By: | Kirchmaier, Tom; Machin, Stephen; Sandi, Matteo; Witt, Robert |
| Abstract: | Whether working in a team or alone results in higher productivity has been extensively studied in many settings, often being a controversial issue. This is none more so than for the police. Whether single or double crewing enhances or diminishes police productivity remains a perennial, contentious debate, yet credible empirical evidence is scarce. This paper provides new, quasi-experimental evidence on the causal impact of crew size on officer performance. Rich administrative data show that a policy shift (known as the 'Banded Shift Pattern') increased double crewing by altering vehicle-to-officer allocation in response teams. Double crewing significantly enhances police performance through two primary mechanisms: it improves officer productivity and reduces officer injury risks by enhancing situational safety. A cost-benefit analysis demonstrates that the performance gains of double crewing outweigh its increased operational expenses, proving it can be an effective strategy for modern policing. |
| Keywords: | police;double crewing;productivity;safety |
| JEL: | J45 K42 |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:141338 |
| By: | Curtis, Panayiotis; Sdrali, Despina; Apostolopoulos, Constantinos |
| Abstract: | This paper develops a value-based framework for assessing tourism destination competitiveness, moving beyond volume-driven metrics that fail to capture long-term value, capital efficiency, and resilience. Drawing on research from 2000-2021, it integrates financial analysis with strategic management and sustainability governance. Competitiveness is defined through the interaction of three dimensions of capital efficiency, strategic positioning and adaptability in alignment with environmental, social and governance principles. The framework connects firm performance with sector dynamics and destination governance, offering a multi-level view of value creation. The analysis suggests that volume-driven models lead to inefficiency and lower resilience, whereas value-based strategies enhance long-term performance. The study proposes a unified analytical tool for Destination Management and Marketing Organizations (DMMOs) to support an effective and efficient decision making process for a sustainable and resilient tourism development |
| Keywords: | value-based competitiveness, capital productivity, destination governance, sustainability, resilience, ROTA-DuPont ratio |
| JEL: | Z32 Q56 D24 R11 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esconf:344151 |
| By: | Pauline Carry; Claire Montialoux; Elio Nimier-David; Alexandra Roulet; Nina Roussille |
| Abstract: | Do shorter workweeks generate work-sharing and productivity gains, as intended by policymakers? We study France’s pay-preserving reduction in the workweek from 39 to 35 hours, bundled with employer payroll tax cuts. We first exploit the staggered implementation by firm size to identify the impact of the reform package. We then use differential exposure to the hours cut and tax cut to separate their effects. We combine matched employer-employee, balance-sheet, and survey data to study worker, firm, and local labor market effects. The reform package left employment unchanged. This zero masks large offsetting effects: absent the tax cuts, the shorter workweek would have reduced employment by 3.8%. The effects are skill-biased, raising employment among managers and professionals while reducing it among other employees. Finally, shorter hours raised total factor productivity by 2%, limiting the output decline to 1% despite a 6% fall in total hours. Surveys point to work intensification and organizational changes as potential drivers of productivity gains. |
| JEL: | J08 J22 J23 J38 |
| Date: | 2026–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:35917 |
| By: | Karin Klieber (Oesterreichische Nationalbank, Monetary Policy); Michael Sigmund (Oesterreichische Nationalbank, Research Section); Maria Teresa Valderrama (Oesterreichische Nationalbank, Economic Analysis Division) |
| Abstract: | We study how monetary policy affects firm-level total factor productivity in the presence of financial frictions using a panel of Austrian non-financial firms. A dynamic firm model and causal empirical framework show that tighter monetary policy reduces productivity-enhancing investment and firm-level TFP. The effects are stronger for highly leveraged firms and are more pronounced for persistent changes in financing conditions than for transitory highfrequency policy surprises. |
| Keywords: | total factor productivity, monetary policy shocks financial frictions |
| Date: | 2026–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:onb:oenbwp:284 |
| By: | Haochuan Wang |
| Abstract: | Does a widening gap between company revenue and staff expense per employee provide evidence of declining rent-sharing? We examine how reporting selection and sector composition affect that inference, as a follow-up to Acemoglu, He, and le Maire's Eclipse of Rent-Sharing. We assemble 7, 000 company-years for 695 firms over 2015-2025. In a fixed sample of 75 staff-expense reporters, nominal revenue per employee rises 83.6%, while staff expense per employee rises 51.0%. The pooled expense-to-revenue ratio falls, but the pattern is concentrated in financial firms; among the other 25 reporters, aggregate staff expense per employee grows slightly faster than aggregate revenue per employee. These accounting measures identify neither real productivity nor the allocation of its gains between labor and capital. A separate audit of the original paper's reported estimates finds that some US output effects remain imprecisely estimated, while several Danish estimates support tighter bounds. The fitted reporting-probability model exhibits concentrated weights, substantial two-group imbalance and sectors without reporters; it does not justify generalizing payroll results. We extend the original study's measurement discussion to public-company accounts and qualify a blanket interpretation of no output effects: precision varies across its estimates. Our sector-dependent accounting results neither confirm nor overturn its causal wage and labor-share findings. |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2610.23869 |
| By: | Schnabel, Oliver; Nasir, Rabiya; Mullane, Fintan; Wickersham, Tom |
| Abstract: | This paper uses three waves of the ONS Management and Expectations Survey (2016, 2020 and 2023) to examine how management practices evolve over time and to understand response behaviour in a voluntary business survey. We track management scores for firms responding across multiple waves and assess the extent to which changes in management practices reflect genuine managerial improvements or responder biases captured by the responder’s occupation. Firms that responded in 2020 were 24.9 percentage points more likely to respond in 2023 when controlling for firm characteristics. Where the individual responding on behalf of the firm was a senior official, such as a director, the respondent provided faster and more consistent responses across waves than firms responding with junior staff. Firms responding in all three waves report higher and improving management practices on average, particularly in employment practices. However, this difference is associated with observable firm characteristics, such as firm size. These results highlight the importance of understanding response patterns when interpreting survey results. We recommend maintaining continuity by retaining firms that responded in all three waves, encouraging responses from senior staff, and applying longitudinal weights to address non-response. The findings support improved survey design for future MES waves and strengthen the use of management practices as a measure of organisational capital in productivity research. |
| Keywords: | management practices; survey design; response volatility; respondent burden; response rates; productivity |
| JEL: | C23 C83 L25 M10 |
| Date: | 2026–10–13 |
| URL: | https://d.repec.org/n?u=RePEc:eoe:escoet:escoe-tr-35 |
| By: | Heyman, Fredrik (Research Institute of Industrial Economics (IFN)); Sjöholm, Fredrik (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Chinese acquisitions of Western firms have become central to debates over technology transfer, national security, and investment screening. Understanding their economic consequences requires evidence on how acquired firms perform and reorganize under Chinese ownership. Using linked Swedish firm and worker registers for 1997–2021 and a matched, stacked difference-in-differences design, we examine majority acquisitions by Chinese and other foreign owners. Other foreign acquisitions raise labor productivity by about 6 percent and employment by about 14 percent on average, alongside increases in total factor productivity, workforce skills, and trade intensity. They also reshape management, strengthen trade links with the acquirer’s home country, and increase workers’ mobility to multinational enterprises. For Chinese acquisitions, we find no statistically detectable improvements in firm performance or comparable evidence of management restructuring, worker mobility, or trade integration. Chinese acquisitions are also rare in industries classified as security-sensitive. These findings provide a detailed account of the economic footprint of Chinese ownership in an advanced host economy. The pattern is consistent with acquisitions seeking assets valuable to the parent group rather than gains through restructuring the target. |
| Keywords: | Geoeconomics; Chinese Acquisitions; Foreign Direct Investment (FDI); Firm Performance; National Security |
| JEL: | F21 F23 G34 L25 |
| Date: | 2026–10–06 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1569 |
| By: | Glenn Magerman; Alberto Palazzolo; Emmanuel Dhyne; Andras Borsos; Dmitry Kulikov; Andrea Linarello; Alari Paulus; Giacomo Romanini; Martín Saldias |
| Abstract: | How much a firm’s shocks move the aggregate, and how they propagate to other firms, both depend on its position in the network of firm-to-firm trade. As firm-level networks are available for few economies, quantitative work typically relies on firm size and/or input–output tables as proxies. Using administrative VAT records and tax filings, we build harmonized production networks for five European economies (Belgium, Estonia, Hungary, Italy, and Portugal) and measure firms’ positions directly. Five facts stand out. First, firm size and centrality summarize a firm’s first-order aggregate impact, but not its vertical position along production chains, which is orthogonal to size and governs how shocks propagate across firms. Second, firm size is itself a function of the network: roughly half of within-industry size dispersion reflects the number of customers a firm has, rather than a primitive such as productivity. Third, granularity runs along several dimensions beyond firm size: network sales, transaction values, and the number of customers are heavy-tailed, spanning several orders of magnitude. Fourth, firm-to-firm networks differ structurally from IO tables: they are orders of magnitude sparser, “roundabout” production disappears, and input shares vary widely even within narrow sector pairs. These patterns are stable across all five economies and persist within narrowly defined industries, reflecting firm-level characteristics rather than sectoral composition or country-specific factors. Finally, these distinctions are economically relevant: firm-level responses to monetary policy vary systematically with vertical position, and cross-country differences in where firms sit along production chains generate heterogeneous aggregate responses to a common shock. We provide these moments as calibration targets and as a guide to when sector-level structure is an adequate approximation and when firm-level detail is first-order. |
| JEL: | C81 D57 E52 L14 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ptu:wpaper:w202611 |
| By: | Tiantian REN (Corresponding author: School of Business, Xiangtan University, Xiangtan 411105, China); Kristiaan KERSTENS (Univ. Lille, CNRS, IESEG School of Management, UMR 9221 - LEM - Lille Economie Management, Lille F-59000, France); Pieter Jan KERSTENS (Data & Analytics Competence Center, Flemish Institute for Technological Research, 2400 Mol, Belgium); Albane Christine TARNAUD (IESEG School of Management, Lille F-59000, France) |
| Abstract: | This contribution introduces a comprehensive multi-moment and multi-time nonparametric frontier framework for mutual fund rating and selection. Without limiting ourselves to traditional central moments, we systematically integrate central moments, L-moments, and truncated Lmoments into the multi-moment and multi-time frontier rating models. To validate out-ofsample performance of the proposed models, we design a novel baseline approach within a buy-and-hold backtesting framework ensuring that any outperformance stems from the rating capability rather than pure luck. Applying this framework to a large database of 713 European equity mutual funds yields three key findings. First, the robust L-moments provides a better balance between total returns and maximum drawdown compared to the central moments and truncated L-moments. Second, incorporating higher-order moments improves both total returns and maximum drawdown. Finally, the nonconvex rating models demonstrate the strongest statistical significance in providing superior maximum drawdown, whereas convex rating models tend to favour aggressive, higher-risk mutual funds. |
| Keywords: | DataEnvelopment Analysis; Free Disposal Hull; Shortage Function; Robust Moments; Frontier; Fund Rating |
| Date: | 2026–09 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e20260914 |
| By: | Giovanni CESARONI (Department of Economics, Business and Statistics, Universitas Mercatorum, Rome, Italy); Kristiaan KERSTENS (Corresponding author: Univ. Lille, CNRS, IESEG School of Management, UMR 9221 - LEM - Lille Économie Management, F-59000 Lille, France, Tel: +33 320545892 (switchboard), Fax: +33 320574855); Amin MOSTAFAEE (Department of Mathematics, NT.C., Islamic Azad University, Tehran, Iran); Majid SOLEIMANI-DAMANEH (Corresponding author: School of Mathematics, Statistics and Computer Science, College of Science, University of Tehran, Enghelab Avenue, Tehran, Iran, & ICOL: Industrial and Computational Optimization Lab., University of Tehran, Iran) |
| Abstract: | Economies of Scale (ES), defined in terms of minimal Ray Average Cost (RAC) and optimal scale size, is a key concept in economics. We refine global ES by considering two new notions, called Global Sub-Increasing ES (G-SIES) and Global Sub-Decreasing ES (G-SDES), which both depend on the behaviour of the RAC function in a nonconvex setting. These notions provide qualitative information about the optimal scale size and position an observation relative to the true flexible returns to scale technology. After presenting a motivating example and defining G-SIES and G-SDES, we characterize these new notions. Then, we calculate a stability interval (region) for the new ES classification against output changes. We establish several technical theorems and design polynomial-time enumeration algorithms which determine the ES of the units under evaluation and provide stability intervals. These results are illustrated by numerical examples and by two empirical studies on real-world data sets from the electricity generation and distribution sectors. |
| Keywords: | Data Envelopment Analysis; Free Disposal Hull; Sub-global economies of scale; RAC function; Stability. |
| Date: | 2026–08 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e20260824 |
| By: | Dominique Desbois (AgroParisTech, Département EcoSocio - Département Économie et Sciences Sociales pour l'Agriculture, l'Alimentation et l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | In the context of the upcoming reform of the Common Agricultural Policy, analyzing agricultural production costs is a crucial step in formulating fair pricing policies—particularly at the regional level—to avoid potential distortions of competition. This article presents the application of statistical techniques based on the Wasserstein distance to the regional analysis of specific agricultural production costs. Accounting for distribution heterogeneity and asymmetry, the approach combines conditional quantile estimation methodology with techniques based on the Wasserstein distance (factor analysis of distance matrices, unsupervised classification, and quadratic testing). The procedure is applied to a comparative regional analysis of specific fertilizer cost distributions for crop production, using data from the European Farm Accountancy Data Network (FADN) at the NUTS 2 regional level. The results regarding specific input costs appear consistent with those of previous studies conducted under the European Union's 7th Framework Programme for Research. |
| Abstract: | Dans le contexte d'une prochaine réforme de la Politique agricole commune, l'analyse des coûts de production agricole est une étape déterminante pour élaborer des politiques de prix équitables, en particulier au plan régional pour éviter d'éventuelles distorsions de concurrence. Cet article présente l'application de techniques statistiques basées sur la distance de Wasserstein à l'analyse régionale des coûts spécifiques de production agricole. Prenant en compte l'hétérogénéité et l'asymétrie des distributions, elle articule la méthodologie de l'estimation quantile conditionnelle à celles basées sur la distance de Wasserstein (analyse factorielle du tableau de distances, classifications non supervisées, test quadratique). La procédure est appliquée pour l'analyse régionale comparative des distributions de coûts spécifiques en fertilisants, pour les productions végétales sur la base du Réseau européen d'information comptable agricole, à l'échelle des régions de base européenne (NUTS2). Les résultats obtenus sur les coûts spécifiques en intrants apparaissent cohérents avec ceux de travaux antérieurement menés dans le cadre du 7e programme cadre de recherche de l'Union européenne. |
| Keywords: | Divisive clustering, Wasserstein Distance, Factorial analysis of distance matrix, Agricultural production, Quadratic test, Quantile estimation, FADN, Specific cost, RICA, Analyse factorielle du tableau de distances, Classification divisive, Distance de Wasserstein, Estimation quantile, Coûts spécifiques, Production agricole, Test quadratique |
| Date: | 2026–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05785136 |
| By: | Audrey DUMAS (Université de Perpignan, CDED, 52 Avenue Villeneuve, Perpignan F-66000, France); Kristiaan KERSTENS (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France); Poleth VEGA RUALES (Université de Perpignan, CDED, 52 Avenue Villeneuve, Perpignan F-66000, France) |
| Abstract: | This paper examines the gender pay gap by focusing on the glass ceiling and sticky floor effects. First, we use parametric methods based on the Blinder-Oaxaca decomposition which measure the adjusted average wage difference between men and women. Second, for comparison, we propose an original approach based on a nonparametric double hedonic wage frontier. This method evaluates how far each individual’s wage is from both the maximum (upper frontier) and minimum (lower frontier) potential salary they could obtain given their characteristics, thereby capturing the glass ceiling and sticky floor effects, respectively. Using 2022 French labour-market data, the nonparametric analysis shows that the gender pay gap is larger than what parametric methods suggest. We confirm that the glass ceiling effect is the more severe issue. Financial and insurance activities display the strongest glass ceiling and sticky floor effects, while employment in the public sector offers women better protection from these inequalities. |
| Keywords: | Gender pay gap, Luenberger indicator, glass ceiling, sticky floor |
| JEL: | C14 J31 J71 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e202603 |