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on Efficiency and Productivity |
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Issue of 2022‒10‒03
nine papers chosen by |
| By: | Jozef Konings; Glenn Magerman; Dieter Van Esbroeck |
| Abstract: | We analyze the impact of Covid-19 rescue policies on both firm-level and aggregate productivity growth and reallocation. Using administrative data on the universe of firms’ subsidies in Flanders, we estimate the causal impact of these subsidies on firm-level outcomes. Firms that received subsidies saw a 7% increase in productivity, compared to firms that applied for, but did not obtain subsidies. Furthermore, the propensity to exit the market was 43% lower for treated firms. Aggregate productivity growth, a share-weighted sum of firms’ productivity evolutions, amounted to 6% in 2020. While within-firm productivity growth was similar for both subsidized and non-subsidized firms, there is a reallocation of market shares from subsidized firms to non-subsidized firms. These results suggest that Covid rescue policies helped firms to sustain and preserve productivity, while not obstructing allocative efficiency gains to non-subsidized firms. |
| Keywords: | Productivity, productivity growth, aggregate productivity, allocative efficiency |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/349952&r= |
| By: | D’Arcangelo, Filippo Maria; Pavan, Giulia; Calligaris, Sara |
| Abstract: | The European Union Emissions Trading System has raised concerns about possible detrimental effects on firms production through an increase in polluting costs, unless firms change inputs or increase the efficiency in the way they produce. We provide evidence of the causal impact of this policy on firms' input choices and on total factor productivity on Italian manufacturing firms. Our empirical strategy combines structural estimation of firms' production function and techniques for policy valuation. Moreover, we argue that a commonly used strategy in this literature, consisting in using propensity score matching on the productivity obtained from estimating the production function, does not provide valid inference. We rely instead on an innovative structural approach. We find that the policy has a small negative effect on productivity that is heterogeneous across industries. We show that these findings are consistent with firms switching fuels in production, rather than undergoing a substantial process change. |
| Keywords: | Financial Economics, Production Economics, Productivity Analysis, Resource /Energy Economics and Policy |
| Date: | 2022–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:324170&r= |
| By: | Xavier Giroud; Simone Lenzu; Quinn Maingi; Holger Mueller |
| Abstract: | This paper shows that local productivity spillovers can propagate throughout the economy through the plant-level networks of multi-region firms. Using confidential Census plant-level data, we find that large manufacturing plant openings not only raise the productivity of local plants but also of distant plants hundreds of miles away, which belong to multi-region firms that are exposed to the local productivity spillover through one of their plants. To quantify the significance of plant-level networks for the propagation and amplification of local productivity shocks, we develop and estimate a quantitative spatial model in which plants of multi-region firms are linked through shared knowledge. Counterfactual exercises show that while knowledge sharing through plant-level networks amplifies the aggregate effects of local productivity shocks, it can widen economic disparities between workers and regions in the economy. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:22-32&r= |
| By: | Andrew Caplin (New York University and NBER); Minjoon Lee (Carleton University); Søren Leth-Petersen (University of Copenhagen); Johan Sæverud (University of Copenhagen); Matthew D. Shapiro (University of Michigan and NBER) |
| Abstract: | How worker productivity evolves with tenure and experience is central to economics, shaping, for example, life-cycle earnings and the losses from involuntary job separation. Yet, worker-level productivity is hard to identify from observational data. This paper introduces direct measurement of worker productivity in a firm survey designed to separate the role of on-the-job tenure from total experience in determining productivity growth. Several findings emerge concerning the initial period on the job. (1) On-the-job productivity growth exceeds wage growth, consistent with wages not being allocative period-by-period. (2) Previous experience is a substitute, but a far less than perfect one, for on-the-job tenure. (3) There is substantial heterogeneity across jobs in the extent to which previous experience substitutes for tenure. The survey makes use of administrative data to construct a representative sample of firms, check for selective non-response, validate survey measures with administrative measures, and calibrate parameters not measured in the survey. |
| Keywords: | Productivity, Wages, Tenure, Experience, Firm survey |
| JEL: | E24 J24 J30 |
| Date: | 2022–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kucebi:2211&r= |
| By: | Uddén Sonnegård, Eva (The Ratio Institute) |
| Abstract: | The design of Eployment Protection Legislation (EPL) is a key factor in determining the functioning and flexibility of the labour market. In the wake of the pandemic and the rapid transformation of economies due to i.e., digitalisation, it will be more important than ever to remove impediments on labour and product markets. Multifactor productivity growth (such as work organisation, technical achievements etc.) has slowed down markedly in many countries after the financial crisis. International studies show that the design of EPL is important for productivity growth. |
| Keywords: | Employment protection; fixed-term employment; open-ended contracts; collective agreements; collective agreements; digitalisation; multifactor productivity; labour productivity; digital-productivity paradox; automation; robotisation |
| JEL: | J59 K31 O43 |
| Date: | 2022–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0356&r= |
| By: | Jonathan Gruber; Simon Johnson; Enrico Moretti |
| Abstract: | Cities with a larger concentration of scientists have been shown to be more productive places for additional scientists to do Research and Development. At the same time, these urban areas tend to be associated with higher costs of doing research, in terms of both wages and land. While the literature on the benefits of agglomeration economies is extensive, it offers no direct evidence of how productivity gains from agglomeration compare with higher costs of production. This paper aims to shed light on the balance between local productivity and local costs in science. Using a novel dataset, we estimate place-based costs of carrying out R&D in each US metro area and assess how these place-based costs vary with the density of scientists in each area. We then compare these costs with estimates of the corresponding productivity benefits of more scientist density from Moretti (2021). Adding more scientists to a city increases both productivity and production costs, but the rise in productivity is larger than the rise in production costs. In particular, each 10% rise in the stock of scientists is associated with a 0.11% rise in costs and a 0.67% rise in productivity. This implies that firms moving from cities with a small agglomeration of scientists to cities with a large agglomeration of scientists experience productivity gains that are 6 times larger than the increase in production costs. This finding is consistent with the increased concentration of R&D activity observed over the past 30 years. However, while the productivity estimate has only modest non-linearities, the cost estimates suggest much larger non-linearities as the concentration of scientists increases. For the most concentrated R&D cities, the difference between productivity gains and cost increases is close to zero. |
| JEL: | H0 J0 R0 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30416&r= |
| By: | James, Kevin R.; Kotak, Akshay; Tsomocos, Dimitrios P. |
| Abstract: | Innovativity – an economy's ability to produce the innovations that drive total factor productivity (TFP) growth – requires both ideas and the ability to process those ideas into new products and/or techniques. We model innovativity as a function of endogenous idea processing capability subject to an exogenous idea supply constraint and derive an empirical measure of innovativity that is independent of the TFP data itself. Using exogenous shocks and theoretical restrictions, we establish that: i) innovativity predicts the evolution of average TFP growth; ii) idea processing capability is the binding constraint on innovativity; and iii) average TFP growth declined after 1970 due to a constraints on idea processing capability, not idea supply. |
| Keywords: | Innovation; Financial Market Effectiveness; Endogenous Growth; Total Factor Productivity |
| JEL: | F3 G3 |
| Date: | 2022–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116448&r= |
| By: | Dominique Desbois (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Keywords: | Symbolic data analysis,Quantile regression,Farm Accounting Data Network |
| Date: | 2022–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03735463&r= |
| By: | Star, Miran |
| Abstract: | In this project, we evaluate the firm performance and the board, and what make the board and performance, relations in the stock firms, which is owned by more than owner, and we make our research based on Iraq, and we took the firm performance, of the Iraq firms, which are in, Iraq stock exchange, which we took the 2019, for the measuring the firms, performances, and for the board of director, we make three variables, which each having effect on the board, which were the first the size of the board, the second one is the CEO duality in the board, and the third one is the gender diversity, which is focus on the female ratio, and the board make the decision, which the result be the performance of the firm, which the board decision make impact on the performance, in a way which if the performance, doesn’t go well, the board will responsible for it. For that we try to find the relation between the effective factor of the board, and their effect on the performance. |
| Keywords: | board size, CEO duality, female member, firm performance |
| JEL: | G34 M41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114396&r= |