In this paper, a theoretical relationship is obtained to measure the effect that inefficiency has on marginal costs, degree of economies of scale and technical change. It is shown that when the relationship between inefficiency and output level is ignored, the estimation of marginal costs and...

This paper analyses the relationship between labour productivity growth and R&D investments of Spanish manufacturing firms during the 1990s. The purpose is to estimate the rate of return to R&D expenditures. The sample is composed by microdata from an unbalanced data panel of firms. Within the...

A new spatial decomposition of TFP growth into direct (own) and indirect (spillover) components is set out. We then apply the decomposition in the context of a spatial autoregressive production frontier analysis of 40 European countries over the period 1995-2008

Using a unique plant-level dataset we examine total factor productivity (TFP) growth and its components, related to efficiency change and technical change. The data we use is from Sweden and for their pulp and paper industry, which is heavily regulated due to its historically large contribution...

We study the role of R&D spillovers when modelling total factor productivity (TFP) by industry. Using Norwegian industry level data, we find that for many industries there are significant spillovers from both domestic sources and from technological change at the international frontier....

Resource misallocation can lower the aggregate total factor productivity (TFP). We use micro-data on manufacturing establishments from the Instituto Ecuatoriano de Estadística y Censos to quantify the differences in productivity and diagnose the efficiency in the allocation of resources between...

This article first reviews the well-known nonparametric methods of decomposing productivity growth and finally argue that Färe et al. (1994)’s method of computing productivity growth is superior in spite of the fact that this model model is based on convexity postulate, which assumes away...

I investigate changes in product scope, the number of products that a firm offers, over the business cycle and decompose the impact of such changes on aggregate output. By using the Nielsen Retail Scanner data of U.S. consumer goods purchases for 2007- 2014, I find that firm product scope is an...

Sticky price models featuring heterogeneous firms and systematic firm-level productivity trends deliver radically different predictions for the optimal inflation rate than their popular homogenous-firm counterparts: (i) the optimal steady-state inflation rate generically differs from zero and...