|
|
Working Paper Series in Economics
|
-
No. 6
(Download full text)
- André Carrascal and Luis Orea
- TFP growth, embeddedness, and Covid-19: a novel production model that allows estimating trade elasticities
The main contribution of this paper is the proposal of a new method to estimate trade elasticities based on a production model where trade elasticities and technological
parameters are estimated simultaneously. Our empirical model, inspired by the theoretical framework introduced by Caliendo et al (2018) to study the propagation
of productivity shocks, also permits assessing whether their central equation aimed at understanding the sources of productivity change, is supported by the data. Furthermore, using econometric techniques, our paper examines trade-related productivity effects that have rarely been examined in the literature on productivity growth decomposition. The proposed model provides a common analytical framework for an empirical examination of several issues that both traditionally and more recently have attracted the interest of many academics and policy/makers, namely TFP growth, embeddedness, and Covid-19. We use the World Input-Output Database (WIOD) for the period 2000-2014 to compute most of the relevant variables employed in these applications.
- JEL-Codes: F47, O47, C68
- Keywords: Total factor productivity, embeddedness, trade elasticities, Covid-19.
-
No. 5
(Download full text)
- Juan José Price and Arne Henningsen
- A Ray-Based Input Distance Function to Model Zero-Valued Output Quantities: Derivation and an Empirical Application
We derive and empirically apply an input-oriented distance function based on the stochastic ray production function suggested by L¨othgren (1997, 2000). We show that the derived ray-based input distance function is suitable for modeling production technologies based on logarithmic functional forms (e.g., Cobb-Douglas and Translog)
when control over inputs is greater than control over outputs and when some productive entities do not produce the entire set of outputs — two situations that are jointly present in various economic sectors. We also address a weakness of the stochastic ray function,namely its sensitivity to the outputs’ ordering, by using a model-selection approach and
a model-averaging approach. We estimate a ray-based Translog input distance function with a data set of Danish museums. These museums have more control over their inputs than over their outputs, and many of them do not produce the entire set of outputs that is considered in our analysis. Given the importance of monotonicity conditions in efficiency analysis, we demonstrate how to impose monotonicity on ray-based input distance functions. As part of the empirical analysis, we estimate technical efficiencies,distance elasticities of the inputs and outputs, and scale elasticities and establish how the production frontier is affected by some environmental variables that are of interest to the museum sector.
- JEL-Codes: C51 - D22 - D24
- Keywords: Stochastic ray production frontier, distance function, input-oriented efficiency, zero output quantities, model averaging, monotonicity, museums.
-
No. 4
(Download full text)
- Eder, A., Koller, W. and Mahlberg, B.
- The contribution of industrial robots to labor productivity growth and economic convergence: A production frontier approach
This paper investigates the contribution of industrial robots to labor productivity growth and the process of economic convergence in 19 developed and 17 emerging countries in the period 1999 to 2019. To answer our research questions, we extend the non-parametric production frontier framework by considering industrial robots as a separate production factor. Production
frontiers and distances to the frontiers are estimated by Data Envelopment Analysis, a method
based on linear programming models. Considerable contributions of robotization to labor productivity growth are mainly found in emerging countries and are rather modest in most developed countries. In the period 2009 to 2019 robot capital deepening as a source of productivity growth has gained in importance in emerging countries but not in developed countries. Within the period 1999 to 2019 we find some evidence of i) unconditional β-convergence, ii) a reduction in the dispersion of productivity levels across economies (σ-
convergence) and iii) a depolarization (shift from bimodal to unimodal distribution) of the labor
productivity distribution. Non-robot physical capital deepening and robotization are the most important drivers of β-convergence. Robot capital deepening contributed to the depolarizationof the labor productivity distribution and to σ-convergence. Though, the effect of robot capital
deepening on the entire shift of the labor productivity distribution between 1999 and 2019 is modest and dominated by other growth factors such as technological change and non-robot physical capital deepening.
- JEL-Codes: E24, O33, O47
- Keywords: automation, robotization, decomposition, data envelopment analysis, emerging countries, developed countries
-
No. 3
(Download full text)
- Robert G. Chambers and Yu Sheng
- Genetically Modified Organisms and Agricultural Productivity
-
No. 2
(Download full text)
- Binlei Gong
- Effects of International Trade on World Agricultural Production: Evidence from a Panel of 126 Countries 1962-2014
-
No. 1
(Download full text)
- Nguyen, B.H., Sickles, R. and Zelenyuk, V.
- Efficiency Analysis with Stochastic Frontier Models using Popular Statistical Softwares
Our chapter provides a brief introduction to the stochastic frontier paradigm - one of the most powerful techniques for performance analysis developed over the last few decades to address various research questions for many contexts with empirical applications in a wide variety of economic sectors such as banking, healthcare, agriculture, and so on. We also document the estimation routines used to implement the classical models as well as the recent developments in this research area for practitioners, especially those who are willing to use Stata, but also with tips on sources for R and Matlab users.
- Keywords: Technical efficiency, Stochastic frontier analysis, Panel data, Semi-parametric, Stata, Matlab, R.
|
|
|