A production technology specification in electricity distribution leads to many product aspects that together with detailed input data gives a high dimensionality. Non-parametric methods may give meaningful results when parametric methods lack degrees of freedom, but have problems with collinear or irrelevant variables. Aggregate efficiency estimates will be little affected, but rates of transf...

Wages and Productivity Growth in a Dynamic Monopoly* This Paper studies the intertemporal problem of a monopolistic firm that engages in productivity-enhancing innovations to reduce its labour costs. If the level of wages is sufficiently low, the firm’s rate of productivity growth approaches the rate of wage growth and eventually the firm reaches a steady state where its unit labour cost remain...

This paper examines productivity growth in the Indonesian manufacturing sector. We use a longitudinal data set to calculate the effects on aggregate manufacturing productivity growth from improvements within establishments, from reallocation of market shares, and from the turnover of plants. The difference between domestic and foreign owned plants is examined together with a calculation of the ...

There is strong evidence that exporting firms are better. This correlation can potentially arise from many alternative casual models. In this paper, we utilise the natural experiments offered by transitioning into export in a dataset of Indian firms from 1990 to 2011, where each firm which made the transition is matched against one which did not. While exporting firms become bigger, there is no...

− A theoretical framework is developed for decomposing partial factor productivity and measuring technical inefficiency when the underlying technology is characterized by factor non-substitution. With Farrell’s (1957) radial index of technical inefficiency being inappropriate in this case, Russell’s (1985; 1987) non-radial indices are adapted to measure technical inefficiency in a Leontief mode...

In this paper the time series properties of the outcomes of two different specifications of a nonparametric productivity analysis are compared using data for threeand four-digit U.S. manufacturing industries over the period 1958-96. The first model is standard and does not account for variations of capacity utilization of the production factors whereas the second model does. Correcting for util...

This study explores the reduction potential of greenhouse gases for major pollution emitting countries of the world using nonparametric productivity measurement methods and directional distance functions. In contrast to the existing literature we apply optimization methods to endogenously determine optimal directions for the efficiency analysis. These directions represent the compromise of outp...

This paper examines the impact of floods on firms’ capital accumulation, employment growth and productivity by using a difference-indifference approach and considering firms’ asset structure. We find evidence that after a flooding companies in flooded regions show on average higher growth of total assets and employment than firms in areas not affected by flooding. The positive effect prevails f...

This paper provides new evidence that estimates obtained from aggregated data may not provide reliable estimates of average firm-level parameters, if the composition of producers with different levels of productivity changes over the business cycle. I examine plant-level data and show that, due to the countercyclical reallocation of output among heterogenous plants, productivity measures based ...

We study the effect of outdoor air pollution on the productivity of indoor workers at a pear-packing factory. Increases in fine particulate matter (PM2.5), a pollutant that readily penetrates indoors, leads to significant decreases in productivity, with effects arising at levels below air quality standards. In contrast, pollutants that do not travel indoors, such as ozone, have little, if any, ...