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on Efficiency and Productivity |
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Issue of 2024‒07‒08
fourteen papers chosen by |
| By: | Anna Valero; John Van Reenen |
| Abstract: | The collapse in productivity growth underlies many of the problems of the UK economy - from squeezed public services to stagnant living standards. Productivity growth in the UK has been weak relative to its own past and to its international peers. Improving productivity is the only route to sustainable improvements in overall growth and living standards. |
| Keywords: | Election2024, Productivity, UK Economy, Green Growth, growth |
| Date: | 2024–06–12 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepeap:057&r= |
| By: | Zaira García-Tórtola (Department of Economics, Universitat Jaume I, Castellón, Spain); David Conesa (Department of Statistics and Operational Research, Universidad de Valencia, Spain); Joan Crespo (Department of Economic Structure, Universidad de Valencia, Spain); Emili Tortosa-Ausina (IVIE, Valencia and IIDL and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | In this paper, we analyse the performance of the Spanish public university system over the 2010–2019 period, which was particularly turbulent due to the tight budget constraints imposed on universities. To disentangle the main sources of performance change, we adopt a dynamic approach by decomposing it into efficiency change (catching up) and technical change (shifts in the frontier). In contrast to many studies on Higher Education Institutions (HEIs), we opt for Stochastic Frontier Analysis (SFA), employing the ray production function proposed by Löthgren (1997) to account for the multiple-output nature of HEIs. Additionally, to offer a more detailed examination of uncertainty quantification, we conduct inference within the Bayesian paradigm. Broadly, results point to an overall positive performance change over the entire period, particularly for technical change during 2010–2014. However, there were notable discrepancies across universities, which could be unlocked with certain precision via the posterior distributions of performance and its components. |
| Keywords: | efficiency, Bayesian, education, stochastic frontier, universities |
| JEL: | C61 J24 R11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2024/05&r= |
| By: | Gilbert Cette; Jimmy Lopez; Jacques Mairesse; Giuseppe Nicoletti |
| Abstract: | Business environments dominated by information flows and autonomous tasks, typical of knowledge-intensive industries, are likely to require enough social capital to be viable and productive. In this paper, we use new EUKLEMS-INTANProd industry-level data (Bontadini et al., 2023a) covering a panel of 19 countries and 20 industries over the 1995-2018 period to investigate the influence of a key element of social capital – trust – on labour productivity in intangible-intensive industries, controlling for hiring and firing regulations that can constrain the ability of managers to implement best practices productively. We find that in such industries, productivity gains from high levels of trust are stronger than elsewhere, while too strict hiring and firing regulations are more damaging for productivity. Using a more limited sample for which data on management quality are available, we show that the positive impact of high trust on productivity in intangible-intensive industries is channeled by the ability to benefit from good management, a key element of organizational capital. Productivity gains from relatively high levels of trust in knowledge-rich environments are estimated to be sizeable and our estimates survive a number of robustness checks. |
| JEL: | J24 L25 O50 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32513&r= |
| By: | Dany Brouillette; Tessa Devakos |
| Abstract: | We propose a tool that decomposes TFP growth into sectoral contributions. The analysis incorporates three structural factors—digitalization, aging and climate change policies—and measures their contributions. Overall, we expect that aggregate TFP growth will slow down in the 2020s below both its historical average and the average from the 2010s. |
| Keywords: | Climate change; Digitalization; Labour markets; Productivity |
| JEL: | D24 J11 O33 Q54 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:24-12&r= |
| By: | Massimo Tamberi (Dipartimento di Scienze Economiche e Sociali - Universita' Politecnica delle Marche) |
| Abstract: | There is substantial disagreement regarding the rate of economic growth, particularly concerning economists' perspectives on the rate of total factor productivity (TFP) growth. Some envision theoretical mechanisms implying constant growth, others have recently suggested a potential secular slowdown in TFP growth, while still others foresee an acceleration of economic growth in the near future, driven by the diffusion of new technologies (Artificial Intelligence). Understanding the direction and speed of progress is critically important for planning our future. A part of the research gap is due to the limited temporal coverage of available data sources. In this article, I attempt to bridge this gap by using an alternative (and unconventional) dataset. The analysis is technically straightforward, based on a simple approach that considers learning mechanisms. Although also the dataset used here has its limitations, it allows for an empirical analysis spanning many centuries, if not millennia. The results, thus derived from a historical approach, are very clear and hold significant implications for the future. The key message is that we should expect a progressive slowdown in the rate of scientific progress, although substantial progress will continue for the next few centuries. |
| Keywords: | economic growth; technological progress; historical perspective |
| JEL: | O47 O33 N00 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:anc:wpaper:487&r= |
| By: | De Bromhead, Alan; Kenny, Sean |
| Abstract: | This paper constructs the first estimates of Irish regional GDP over the twentieth century and traces the relative economic performance of Ireland's regions since independence. Using an array of data sources available at a county level, output in Agriculture, Industry and Services in benchmark census years is estimated. Applying a variety of alternative measures, we find a reduction in regional inequality over the period that is similar to the broader European pattern. Regional convergence over the period 1926-1991 was driven by both within-sector convergence in productivity and structural change. Our paper helps to understand the regional dimensions to Irish economic development from the birth of a newly independent state up to the eve of Ireland's growth 'miracle' in the 1990s, when the first official efforts were initiated to construct these figures. Finally, we connect our estimates to these official figures to examine GDP at the level of NUTS regions up to 2021. |
| Keywords: | Regional GDP, Ireland, Economic History, Inequality, Economic Growth |
| JEL: | N34 N94 O18 R11 R12 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:qucehw:298001&r= |
| By: | Jon D. Samuels; Corby Garner; Justin Harper |
| Abstract: | Taxes and subsidies drive a wedge between prices received and paid by producers and those paid by purchasers. Motivated by the large economic subsidies that were part of the policy response to the COVID-19 pandemic, this paper introduces a new treatment for taxes and subsidies into the BEA-BLS Integrated industry-level production account. Over shorter time periods, and for particular individual industries, these adjustments affect measured productivity growth, but have a minimal impact at the aggregate. Nevertheless, for shorter time periods, and for industries that receive large subsidies, accounting for the effect of taxes and subsidies has a noticeable impact on the measured sources of growth. |
| JEL: | E01 H20 D24 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:bea:papers:0127&r= |
| By: | Supratim Das Gupta (Amrut Mody School of Management, Ahmedabad University, Ahmedabad, India); Marco Baudino (Université Côte d'Azur, CNRS, GREDEG, France); Saikat Sarkar (Department of Economics & Politics, Visva Bharati University, Santiniketan, India) |
| Abstract: | This paper explores the growth-energy-pollution nexus of the environmental Kuznets curve (EKC) considering the joint contribution to CO2 emissions of the different sectors of the economy for a set of 43 emerging and developing countries. Since energy consumption and contribution to GDP growth can vary remarkably among sectors, the latter are likely to be characterized by heterogeneous responses to pollution from macroeconomic factors. We adopt an index decomposition approach disentangling the effect of energy consumption from intra-sectoral shifts in economic activities, which allows to evaluate improvements in energy efficiency across sectors. For the empirical analysis, we employ System and Difference GMM estimations using longitudinal obser- vations from 1998 to 2019. Our econometric results reveal substantial heterogeneity of responses to carbon dioxide reduction across sectors. Particularly, we validate the exis- tence of the EKC in energy-related measures for the sole manufacturing sector, and in GDP growth for the commercial and public sector. On the other hand, while emissions increase proportionately with growth in the transportation sector, energy efficiency measures seem to be ineffective in curtailing emissions in both the transportation and commercial and public sectors. Our results bear recommendations for the achievement of effective carbon neutrality policies. |
| Keywords: | Environmental Kuznets Curve, Energy Intensity Decomposition, CO2 Emissions |
| JEL: | Q01 Q53 O13 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2024-17&r= |
| By: | DiMaria, charles-henri |
| Abstract: | Innovation outcomes are typically linked to measurable resources such as R&D expenses and the number of researchers. However, we show that innovation outcomes are also significantly influenced by the National Innovation System, an aspect often overlooked in the existing literature. The National Innovation System encompasses challenging-to-measure resources such as the amount of staff training, the extent of university-industry or cross-industry collaboration, and the level of intellectual property rights. We demonstrate, using a Data Envelopment Analysis model, that cross-country differences in National Innovation Systems account for a significant share of relative inefficiencies in producing innovation from typical innovation inputs. This finding suggests that countries can support long-term economic growth by simply fostering and advancing a National Innovation System. |
| Keywords: | Data Envelopment Analysis, National Innovation System, country efficiency heterogeneity |
| JEL: | E22 O32 O47 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120800&r= |
| By: | Daron Acemoglu; Pascual Restrepo |
| Abstract: | This paper studies the effects of automation in economies with labor market distortions that generate worker rents—wages above opportunity cost—in some jobs. We show that automation targets high-rent tasks, dissipating rents and amplifying wage losses from automation. It also reduces within-group wage dispersion for exposed groups. Automation-driven rent dissipation is inefficient and reduces (and could even negate) the productivity gains from automation. Using data for the US from 1980 to 2016, we find evidence of sizable rent dissipation and reduced within-group wage dispersion due to automation. Using these estimates and accounting for equilibrium effects, we estimate that automation accounts for 52% of the increase in between-group inequality in the US since 1980, with rent dissipation being responsible for a fifth of this contribution. We also estimate that inefficient rent dissipation offset 60–90% of the productivity gains from automation since 1980. |
| JEL: | J23 J31 O33 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32536&r= |
| By: | Yiran Niu (The Hong Kong Polytechnic University, Hong Kong); Jean-Philippe Boussemart (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France); Zhiyang Shen (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France); Michael Vardanyan (IESEG School of Management, Univ. Lille, CNRS, UMR 9221 - LEM - Lille Economie Management, F-59000 Lille, France) |
| Abstract: | Aiming to achieve sustainable development, a constantly growing number of countries have strived to promote economic growth while simultaneously mitigating environmental degradation and maximizing social welfare. However, despite the importance attributed to social well-being in contemporary discourse, its role has not received much attention in the performance evaluation literature. We propose a novel, multi-stage framework based on three dimensions of performance allowing us to assess the tradeoffs between the economic, environmental, and social efficiency in 28 OECD member countries from 2000 to 2019. We construct several scenarios representing policymakers' preferences by altering the weights assigned to the different performance pillars, allowing us to assess the environmental and social repercussions of economic growth. Our findings suggest that policies promoting relatively balanced growth patterns can offer opportunities for higher performance across all three pillars. At the same time, prioritizing development along any single dimension can trigger a relatively significant drop in progress in terms of the other two pillars. We also demonstrate that the sustainable development potential has varied across time and space. Comparisons suggest that the European OECD member countries have outperformed their non-European counterparts in terms of the economic performance, health outcomes, life expectancy, and carbon dioxide (CO2) emissions. Our results can provide policymakers with insights into strategies for promoting economic growth that account for sustainable development objectives. |
| Keywords: | Data Envelopment Analysis; Environmental Technology; Social Benchmarking; Nonparametric Estimation |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ies:wpaper:e202414&r= |
| By: | Dany Brouillette; Tessa Devakos |
| Abstract: | Nous proposons un outil qui décompose la croissance de la PTF en contributions sectorielles. L’analyse intègre trois facteurs structurels – la numérisation, le vieillissement de la population et les politiques climatiques – et mesure leur impact respectif. Dans l’ensemble, nous nous attendons à ce que la croissance globale de la PTF ralentisse dans les années 2020 et soit inférieure à la moyenne historique ainsi qu’à la moyenne des années 2010. |
| Keywords: | Changements climatiques; Marchés du travail; Numérisation; Productivité |
| JEL: | D24 J11 O33 Q54 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocsan:24-12fr&r= |
| By: | Laurence Jacquet; Etienne Lehmann |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tep:teppwp:wp24-04&r= |
| By: | Jason Robert Guertin; Naomie Chouinard; Chanel Beaudoin Cloutier; Philippe Lachapelle; Normand Lantagne; Maude Laberge; Thomas G. Poder |
| Abstract: | Severe burn injuries are recognized as being among the most severe in terms of morbidity and mortality that an individual can experience. Given the nature of the hospitalization and care required, these hospitalizations are recognized as some of the most expensive in the healthcare system. Healthcare cost analyses are used to quantify the monetary value of the resources used during an episode of care. Historically, in Quebec, the approach based on the relative intensity level of resources used (NIRRU) was the most frequently used when examining the cost of a hospital stay. A new method has recently emerged, based on the Cost per Care and Service Path (CPSS). Using data from the CHU de Québec-Université Laval's Centre de valorisation et d'exploitation de la donnée (SCIENTA) on 362 index hospitalizations for severe burn trauma, the authors show that the average direct costs estimated using the CPSS approach are 73% higher than those obtained using the NIRRU approach. However, it is not possible to determine which of the two estimates is closer to the actual cost. Therefore, it is not possible to rule out the risk that the differences observed between the costs estimated according to the two methodological approaches are specific to the populations and conditions studied. Les traumatismes de brûlures sévères sont reconnus comme étant parmi les plus sévères en termes de morbidités et de mortalité qu’un individu peut vivre. Étant donné la nature des hospitalisations et des soins requis, ces hospitalisations sont reconnues comme étant parmi les plus dispendieuses au sein du système de santé. Les analyses de coûts en santé permettent de quantifier la valeur monétaire des ressources utilisées lors d’un épisode de soins. Historiquement, au Québec, l’approche basée sur le niveau d’intensité relative des ressources utilisées (NIRRU) était l’approche la plus utilisée lorsqu’on désirait examiner le coût d’un séjour hospitalier. Une nouvelle méthode est récemment apparue, soit l’approche basée sur le Coût par parcours de soins et de services (CPSS). À partir de données du Centre de valorisation et d’exploitation de la donnée (SCIENTA) du CHU de Québec-Université Laval portant sur 362 hospitalisations index liées à des traumatismes de brûlures sévères étudiées, les auteurs montrent que les coûts moyens directs estimés selon l’approche du CPSS sont 73 % plus élevés que ceux obtenus selon l’approche du NIRRU. Par contre, il n’est pas possible de déterminer laquelle des deux estimations se rapproche le plus du coût moyen réel. Aussi, il n’est pas possible d’exclure le risque que les différences observées entre les coûts estimés selon les approches méthodologiques soient spécifiques aux populations et conditions étudiées. |
| Keywords: | Health, Economy, Costs, Hospitalization, Santé, Ãconomie, Coûts, Hospitalisation |
| Date: | 2024–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirpro:2024rp-09&r= |