Using a sample of 140 managers, we investigate the use of various performance metrics in determining the periodic assessment, bonus decisions, and career paths of business unit managers.We show that the weight on accounting return measures is associated with the authority of these managers, and...

Industry productivity is obtained by aggregation of firm productivities and inclusion of the appropriate allocative efficiency terms, one for each firm.This paper identifies the latter correction terms.

We consider a Bayesian analysis of the stochastic frontier model with composed error.Under a commonly used class of (partly) noninformative prior distributions, the existence of the posterior distribution and of posterior moments is examined.Viewing this model as a Normal linear regression model...

This study investigates the impact of corporate governance and product market competition on total factor productivity growth in Germany and the UK.For Germany, the prototype of a bank-based governance system, productivity grows faster in firms controlled by financial institutions (in...

The paper focuses on labor and product market deregulations, as fundamental elements in the passage from an investment to an innovation-based economy.The approach undertaken is prominently empirical.After a very brief description of the regulatory levels on the two sides of the Atlantic, we take...

Debreu s coefficient of resource utilization is freed from individual data requirements.The procedure is shown to be equivalent to the imposition of Leontief preferences.The rate of growth of the modified Debreu coefficient and the Solow residual are shown to add up to TFP growth.This...

If more productive firms grow relatively fast, an industry performs better, even when no firm exhibits technical or efficiency change.In other words, the two well-known sources of productivity growth-technology and efficiency-can be augmented by a third one, namely the industrial organization...

This study investigates the impact of corporate governance and product market competition on total factor productivity growth for two large samples of German and UK firms. In poorly performing UK firms, the presence of strong outside blockholders lead to substantial increases in productivity....

We develop a generalized production framework with endogenous “production techniques” that serve to organize raw factor inputs in an efficient manner. We establish a positive relationship between production flexibility and cost efficiency. By allowing firms to differ in technology...