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Productivity Differences (productivity + difference)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	87%

Selected Abstracts

ON FINANCE AS A THEORY OF TFP, CROSS-INDUSTRY PRODUCTIVITY DIFFERENCES, AND ECONOMIC RENTS,

INTERNATIONAL ECONOMIC REVIEW, Issue 2 2008
Andrés Erosa
We develop a theory of capital-market imperfections to study how the ability to enforce contracts affects resource allocation across entrepreneurs of different productivities, and across industries with different needs for external financing. The theory implies that countries with a poor ability to enforce contracts are characterized by the use of inefficient technologies, low aggregate TFP, large differences in labor productivity across industries, and large employment shares in industries with low productivity. These implications are supported by the empirical evidence. The theory also suggests that entrepreneurs have a vested interest in maintaining a status quo with low enforcement. [source]

Dual Economies and International Total Factor Productivity Differences: Channelling the Impact from Institutions, Trade, and Geography

ECONOMICA, Issue 300 2008
AREENDAM CHANDA
This paper provides a framework that decomposes aggregate total factor productivity (TFP) into a component reflecting relative efficiency across sectors, and another component that reflects the absolute level of efficiency. A development accounting analysis suggests that as much as 85% of the international variation in aggregate TFP can be attributed to variation in relative efficiency across sectors. Estimation results show that recent findings highlighting the importance of strong protection of property rights, financial development and geographical advantage for the level of TFP, can be explained by their impact on relative efficiency. [source]

AGENCY COSTS OF THIRD-PARTY FINANCING AND THE EFFECTS OF REGULATORY CHANGE ON UTILITY COSTS AND FACTOR CHOICES

ANNALS OF PUBLIC AND COOPERATIVE ECONOMICS, Issue 4 2007
Francis J. CRONIN
ABSTRACT,:,Beginning in 1999, the Canadian Province of Ontario undertook restructuring and tried to implement performance based regulation for local electricity distribution utilities. Regulatory parameters were based on productivity research covering 1988,1997 that found little productivity difference by size, but wide variations in costs, factor mix, financing, and returns to capital among utilities. While some utilities questioned their ability to improve efficiency, other observers maintained many utilities were over-capitalized, especially from third-party financing paid by customers for connection/development charges; these observers noted that rates, profits, and valuations would be inflated. Despite its pervasive use, we can find no literature dealing with the implications of third-party funding. We assess the effects and adjustment dynamics of regulatory and financing changes on costs, factor mix, and performance. [source]

The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity

ECONOMETRICA, Issue 6 2003
Marc J. Melitz
This paper develops a dynamic industry model with heterogeneous firms to analyze the intra-industry effects of international trade. The model shows how the exposure to trade will induce only the more productive firms to enter the export market (while some less productive firms continue to produce only for the domestic market) and will simultaneously force the least productive firms to exit. It then shows how further increases in the industry's exposure to trade lead to additional inter-firm reallocations towards more productive firms. The paper also shows how the aggregate industry productivity growth generated by the reallocations contributes to a welfare gain, thus highlighting a benefit from trade that has not been examined theoretically before. The paper adapts Hopenhayn's (1992a) dynamic industry model to monopolistic competition in a general equilibrium setting. In so doing, the paper provides an extension of Krugman's (1980) trade model that incorporates firm level productivity differences. Firms with different productivity levels coexist in an industry because each firm faces initial uncertainty concerning its productivity before making an irreversible investment to enter the industry. Entry into the export market is also costly, but the firm's decision to export occurs after it gains knowledge of its productivity. [source]

External economies of scale in the Lancashire cotton industry, 1900,1950

ECONOMIC HISTORY REVIEW, Issue 1 2002
Stephen Broadberry
This article provides three types of evidence for external economies of scale in the Lancashire cotton industry. Anglo-American productivity differences are used to demon-strate external economies at the industry level. Econometric evidence of dynamic (Marshall-Arrow-Romer) external economies of localization in spinning and weaving is provided using individual earnings data. A case study of a merchant firm demonstrates the build-up of dynamic (Jacobs) externalities of urbanization. It is argued that the persistence of a large merchant community generating external economies of scale helped to delay Britain's loss of comparative advantage to low wage producers. [source]

Semi-Nonparametric Estimation of an Equilibrium Search Model

OXFORD BULLETIN OF ECONOMICS & STATISTICS, Issue 3 2000
Pierre Koning
We specify and estimate an equilibrium job search model with productivity differences across labour market segments. The model allows for two types of unemployment: frictional unemployment due to search frictions and structural unemployment due to wage floors. Wage floors exist because of high unemployment benefits or binding minimum wages. The productivity distribution is estimated semi-nonparametrically along the lines of Gallant-Nychka, using Hermite series approximation. We decompose the total unemployment rate and we examine the effects of changes in the minimum wage. [source]

Going beyond competencies: An exploratory study in defining exemplary workplace learning and performance practitioners

PERFORMANCE IMPROVEMENT QUARTERLY, Issue 1 2009
Terri Freeman Smith
This study was an exploratory investigation used to identify exemplary performance in four of the areas of expertise (AOEs) as described in the American Society for Training and Development's Mapping the Future: New Workplace Learning and Performance Competencies (2004). Qualitative data were collected from the following four AOEs: (1) delivering training, (2) designing learning, (3) improving human performance, and (4) measuring and evaluating. Research suggests that an exemplary performer could have productivity differences 12 times greater than performers at the bottom of the performance scale and 85% greater than an average performer (Hunter, Schmidt, & Judiesch, 1990). Critical incidents were collected from behavioral event interviews of 23 exemplary performers and 9 typical performers. An analysis of the findings suggests that an exemplary performer may hold at least four key behaviors: taking calculated risks, entrepreneurial and visionary planning, documented business performance to support and influence change, and political prudence and leadership savvy. [source]

Potentiel de Productivité et Efficacité Technique du Secteur Agricole en Afrique

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 3 2006
Joachim Binam Nyemeck
This study utilizes frontier metaproduction functions to analyze inter-region agricultural productivity differences. Technical efficiency scores are examined through estimation of stochastic frontiers for 16 African countries divided into three different regions (West Africa, East and Southern Africa, and North Africa) from 1970 to 2001. The idea is to explore the differences in efficiency and technological gaps of agricultural sector. Apart of common traits that characterize African agricultural sector, countries exhibit national and regional specificities. These diversities are such that it is difficult to make valuable generalizations. It appears from the results that: in West Africa, the level of technology is relatively good, meaning that there is no problem of input constraints. By contrast, the efficiency with which inputs are used is very low. The situation is very different in the East and Southern Africa, with the level of technology relatively low and appreciable technical level. At least, the North Africa countries make a performing mixture between technology and efficiency. Cette étude utilise les Meta frontières de production pour analyser les différences inter-régionales de la productivité agricole. Les niveaux d'efficacité technique sont examinées par l'estimation des frontières stochastiques de 16 pays africains regroupés en trois régions (l'Afrique de l'Ouest, l'Afrique de l'Est et Australe, et l'Afrique du Nord), sur une période allant de 1970 à 2001. L'idée étant d'explorer les différences d'efficacité et les écarts technologiques du secteur agricole. Au-delà des simples traits communs qui caractérisent le secteur agricole africain, on trouve des expériences nationales et régionales dont il est difficile, du fait de leur grande diversité, de tirer des généralisations valables. Des résultats de l'étude, il ressort que: en Afrique de l'Ouest, le niveau technologique est relativement satisfaisant, traduisant le fait que la présence des inputs ne représente pas une contrainte. Par contre le niveau d'efficacité avec lequel ces intrants sont utilisés est assez faible. La situation est tout autre en Afrique de l'Est et Australe avec un niveau technologique relativement faible et un niveau d'efficacité appréciable. L'Afrique du nord enfin fait un savant dosage entre efficacité et technologie. [source]