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on Efficiency and Productivity |
| By: | Bairy, Gaurav Gopal; Raj, Prateek; Yayavaram, Sai |
| Abstract: | Productivity spillovers between firms are frequently viewed as an important source of firm productivity enhancement. In this study, we focus on vertically linked inter-industry spillovers and examine their two key characteristics: asymmetry between forward (upstream) and backward (downstream) spillovers and heterogeneity among firms in leveraging such spillovers. We estimate productivity of Indian firms using firm-level data and use Input-Output tables to identify vertical linkages at the industry level. Our findings show that productivity spillovers from upstream industries benefit all firms whereas spillovers from downstream industries primarily benefit productive firms. Furthermore, the impact of forward spillovers is higher for firms operating in less competitive industries and lower for foreign firms. These heterogeneous spillover effects are likely to slow convergence in firm productivity, providing additional justification for the persistence of firm-level differences in productivity levels. |
| Keywords: | productivity spillovers, vertical linkages, firm heterogeneity, industry competition, firm ownership |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cbscwp:324651 |
| By: | Yasutaka Koike-Mori; Antonio Martner |
| Abstract: | We investigate the role of multi-product firms in shaping resource misallocation within production networks and its impact on aggregate total factor productivity (TFP) growth. Using administrative data on product transactions between all the for-mal Chilean firms, we provide evidence that demand shocks to one product affect the production of other products within the same firm, suggesting firms engage in joint production. We develop a framework to measure resource misallocation in production networks with joint production, deriving non-parametric sufficient statistics to quantify these effects. Applying the framework to Chile, we find that reallocation effects, considering joint production, explain 86% of observed aggregate TFP growth for the 2016-2022 period. Ignoring joint production leads to overestimating resource misallocation. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchwp:1022 |
| By: | Luca Fontanelli (University of Brescia, Italy; RFF-CMCC European Institute on Economics and the Environment; Université Côte d'Azur, GREDEG, CNRS, France); Mauro Napoletano (Université Côte d'Azur, GREDEG, CNRS, France; Sciences Po, OFCE, Paris, France; Institute of Economics, Scuola Superiore Sant'Anna, Italy); Angelo Secchi (PSE, Universitè Paris 1 Panthéon-Sorbonne, France) |
| Abstract: | We revisit the size-volatility relationship in firm growth using administrative data on French manufacturing firms. Departing from the log-log linear decay commonly reported by other studies, we find a two-regime pattern: volatility declines steeply with size for small firms, but flattens for larger ones. We relate this new fact to the presence of resources misallocation as captured by imperfect correlation between size and productivity at the firm level. To explain the nexus between these two facts, we develop a stochastic model where firms face a number of risky business opportunities for which they compete. Two key features characterize this competition process. First, larger firms are more intensively exposed to competition dynamics. Second, firms with higher productivity are more likely to see business opportunities turning into positive, rather than negative, growth episodes. We analytically show that only when the correlation between firm size and productivity is lower than 1 the model is able to reproduce the volatility scaling we observed in the data. Simulations suggest that finite sample approximations of our asymptotic result are satisfactory in a reasonable portion of the parameter space. We conclude showing that in France industries populated by firms with higher correlation between size and productivity are associated with steeper average size-volatility decays consistent with the model's main prediction. Our findings suggest that the existence of resources misallocation, shaping the size-volatility relation, affects the relevance of the granularity channel in explaining aggregate fluctuations (Gabaix, 2011). |
| Keywords: | volatility scaling, granularity, resource allocation |
| JEL: | D40 L20 |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-35 |
| By: | Naoto Tanemoto (Graduate School of Economics, Kobe University); Hinami Takai (Graduate School of Economics, Kobe University); Tomomi Miyazaki (Graduate School of Economics, Kobe University) |
| Abstract: | This study examines the nonlinear effects of public capital in Japan by using a panel threshold regression method. First, our empirical results confirm the threshold effects of public capital productivity in Japan. Second, we demonstrate that rural regions gradually become low productivity regions over time. These results imply that the consideration of threshold effects is essential for understanding nonlinearities in the level of public capital and its economic effects in Japan. JEL Classification: E24, E62, H30 |
| Keywords: | Public capital, nonlinearity, panel threshold regression |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:koe:wpaper:2516 |
| By: | Satyadhar Joshi (Alumnus I-MBA Bar Ilan University, Israel.) |
| Abstract: | This paper provides a comprehensive analysis of Artificial Intelligence's impact on U.S. economic competitiveness through six key dimensions. First, we examine AI's macroeco-nomic effects, synthesizing projections that estimate potential contributions of $4.8-$19.9 trillion to global GDP by 2030, with annual productivity growth ranging from 0.5-1.3%. Second, we analyze labor market transformations, where 20-40% of jobs may be affected, creating both displacement risks and opportunities for workforce augmentation. Third, we investi-gate the intensifying geopolitical competition in AI, particularly between the U.S. and China, where military AI markets are projected to reach $38.5 billion and $32 billion respectively by 2030. Fourth, we evaluate sector-specific impacts, highlighting manufacturing efficiency gains of 15-30% and small business productivity improvements up to 25%. |
| Keywords: | Innovation, Artificial Intelligence Economic Growth Competitiveness Automation Productivity Labor Markets Geopolitics Policy Digitalization Innovation, Artificial Intelligence, Economic Growth, Digitalization, Policy, Geopolitics, Labor Markets, Productivity, Automation, Competitiveness |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05212339 |
| By: | Muñoz, Pablo; Otero, Cristóbal |
| Abstract: | We study whether the quality of managers can affect public service provision in the context of public health. Using novel data from public hospitals in Chile, we show how the introduction of a competitive recruitment system and better pay for public hospital CEOs reduced hospital mortality by 8%. The effect is not explained by a change in patient composition. We find that the policy changed the pool of CEOs by displacing doctors with no management training in favor of CEOs who had studied management. Productivity improvements were driven by hospitals that recruited higher quality CEOs. |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:ajt:wcinch:83337 |
| By: | Martin Chalkley; Sakshi Mohan; Margherita Molaro; Bingling She; Wiktoria Tafesse |
| Abstract: | As health system modeling (HSM) advances to include more complete descriptions of the production of healthcare, it is important to establish a robust conceptual characterisation of the production process. For the Thanzi La Onse model in Malawi we have incorporated an approach to production that is based on a form of Leontief technology -- fixed input proportions. At first sight, this form of technology appears restrictive relative to the general conception of a production function employed in economics. In particular, the Leontief technology is associated with constant returns to scale, and level sets that are piecewise linear, both of which are highly restrictive properties. In this article we demonstrate that once incorporated into an all disease, agent-based model these properties are no longer present and the Leontief framework becomes a rich structure for describing healthcare production, and hence for examining the returns to health systems investments. |
| Date: | 2025–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2508.21699 |