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In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into firmlevel competitiveness in Europe. We differ from standard TFP studies at the firm level as we simultaneously allow for inefficiency, noise and do not impose a functional form on the input-output...
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finding is that manufacturing shows little evidence of either labor productivity or multifactor productivity convergence … convergence results, the paper introduces a new measure of multifactor productivity which avoids many problems inherent to … traditional measures of total factor productivity when comparing productivity levels. The lack of convergence in manufacturing is …
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