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Article
Publication date: 8 May 2017

Paulo de Andrade Jacinto, Eduardo Pontual Ribeiro and Tulio Cravo

The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology

Abstract

Purpose

The purpose of this paper is to evaluate skilled labor demand determinants in Brazil, considering alternatives explanations: changes in relative wages, non-homothetic technology output growth and skill-biased technical change.

Design/methodology/approach

This study relies on a rich and unique matched employer-employee data set for manufacturing sector, from 1996 to 2003. The analysis considers a translog functional form labor demand system estimated using seemingly unrelated regression and instrumental variables to control for possible measurement errors and wages and output endogeneity.

Findings

The demand function estimates suggest that: labor demand underlying technology is non-homothetic, research and development investment is biased toward skilled workers, the non-homothetic technology is not skill biased so output changes contributed positively for skilled labor increase, relative wages played a significant role and international trade has little explanatory power explaining labor demand shifts.

Originality/value

This is the first paper that considers alternative explanations for the increase in the demand of skilled workers for manufacturing in Brazil simultaneously: changes in relative wages, output changes with non-homothetic technology, skill-biased technical change and, to a lesser extent, international trade. The study challenges current empirical evidence that considers trade and trade liberalization as the main factor explaining labor demand shifts.

Details

Journal of Economic Studies, vol. 44 no. 2
Type: Research Article
ISSN: 0144-3585

Keywords

Book part
Publication date: 1 November 2011

Bjarne S. Jensen and Ulla Lehmijoki

Multisector growth (MSG) models have a special aura that is shared with computable general equilibrium (CGE) models. Both of them, with their many sectors (industries and goods)…

Abstract

Multisector growth (MSG) models have a special aura that is shared with computable general equilibrium (CGE) models. Both of them, with their many sectors (industries and goods), are known as trying to convert Walrasian general equilibrium systems from an abstract economy representation into workable models with industrial structures changing as actually observed. Yet, they are plagued by severe problems. First, they are difficult subjects involving systems of nonlinear equations. Second, their prevalent numerical (algorithmic) methodology offers little in the way of showing a clear overall picture and understanding the plethora of numbers pouring out from model simulations. The great wood is not seen for all the trees. Hence, the main objective is to set out comparative static and dynamic systems for succinctly stating and explicitly solving MSG models. The Walrasian general equilibrium is completely stated by one equation and the multisector dynamics by one differential equation. Benchmark solutions are shown for three Constant Elasticity of Substitution (CES) parameter regimes of a 10-sector general equilibrium model.

Details

Economic Growth and Development
Type: Book
ISBN: 978-1-78052-397-2

Keywords

Book part
Publication date: 31 May 2016

Patrick McCarthy

This research estimates a multi-product flexible cost function of airport variable costs. Data for the analysis are a panel of 50 airports from 1996 to 2008. Output includes…

Abstract

This research estimates a multi-product flexible cost function of airport variable costs. Data for the analysis are a panel of 50 airports from 1996 to 2008. Output includes domestic and international departures, non-aeronautical operating revenues, and the number of transport workload units, where a workload unit is a passenger or the equivalent of a 220 pound packet of cargo. The quasi-fixed factor is the equivalent number of 10,000′ × 150′ runways at an airport. After correcting for first-order serial correlation, the analysis finds that airports operate under constant returns to runway utilization and multi-product decreasing returns to scale, production technology is consistent with product specific returns to capacity utilization and anti-complementarity across outputs, and general airport operations have input substitution possibilities with personnel and contractual repair/maintenance inputs. The study also finds 1.05% technology progress over the sample period, due to strong growth prior to 2001, with similar productivity growth rates for large and medium hubs.

Book part
Publication date: 12 September 2017

Anna Bottasso and Maurizio Conti

This chapter examines the main methodological issues involved in the comprehension of the cost structure of the airport industry and suggests considerations for future airport…

Abstract

This chapter examines the main methodological issues involved in the comprehension of the cost structure of the airport industry and suggests considerations for future airport cost analyses. Such understanding has become a crucial concern for policy makers, regional planners, and managers in order to deal with optimal market design (e.g., regulation and market configuration) and airport strategies (e.g., pricing, investments, and alliances). An in-depth analysis of the economics of cost functions is presented, together with a description of the relevant multi-output cost economies measures (average incremental costs, scale and scope economies, and cost complementarities). We also discuss the assumptions underlying estimates of total versus variable cost functions and the importance of estimating a sufficiently flexible functional form. Moreover, we provide a critical survey of the international empirical literature on the cost structure of the airport industry, which highlights how econometric estimates strongly depend on the sample choice and the empirical model considered. Indeed, while econometric studies on international samples based on long-run cost function estimates show that long-run scale economies are never exhausted, single country studies mostly estimate variable cost functions and find lower values for scale economies at median sample points that tend to decrease with size. We discuss why we believe that studies based on the estimation of short-run variable cost functions offer more reliable results, given the reasonable assumption of airport overcapitalization in the short run. We conclude our work by noting that underlying policy issues related to planning and regulation, as well as to the optimal market structure of the airport sector, need to take into account the role played by vertical relationships between airports and airlines.

Details

The Economics of Airport Operations
Type: Book
ISBN: 978-1-78714-497-2

Keywords

Article
Publication date: 8 November 2013

Kusum Mundra

This paper revisits the derivation and properties of the Allen-Uzawa and Morishima elasticities. Using a Swiss dataset, this paper empirically estimates various elasticities both…

Abstract

Purpose

This paper revisits the derivation and properties of the Allen-Uzawa and Morishima elasticities. Using a Swiss dataset, this paper empirically estimates various elasticities both in a dual and primal framework using a production theory open economy model and tests for linear homogenous technology. In addition to reporting elasticity at the mean, the standard practice in the literature, this paper also calculates nonparametric distribution of various elasticities. The paper aims to discuss these issues.

Design/methodology/approach

To assess the effect of price change on input, the paper estimates a translog cost function and to assess the effect of quantity change on price, the paper estimates the translog distance function using the data on Swiss economy. The paper estimates Allen-Uzawa and Morishima elasticity both under homogenous and non-homogenous technology using the Swiss dataset of one aggregate gross output and four inputs (resident labor, non-resident labor, imports, and capital) over 1950-1986. Elasticities are reported and compared at the mean as well as explored by looking at the range and nonparametric distribution.

Findings

This paper shows that constant returns to scale are easily rejected in this dataset and that the elasticities, both qualitatively and quantitatively, are very different under homogenous and non-homogenous technology. These elasticities can switch from complements to substitutes or vice versa when one moves away from the mean of the sample. The equality of the nonparametric elasticity distributions under homogenous vs non-homogenous technology is rejected in all cases except one.

Originality/value

This paper gives a clear derivation and interpretation of different elasticities as well as demonstrates using a dataset how to systematically go about empirically estimating these elasticities in a dual and primal framework. It shows that linear homogenous technology can be easily rejected and the elasticities, both quantitatively and qualitatively, are very different under homogenous and non-homogenous technology. This paper is also very valuable because it shows that the standard practice of reporting elasticity at the mean might not be adequate and there is a possibility that these elasticities can switch from complements to substitutes or vice versa when one moves away from the mean of the sample.

Details

Indian Growth and Development Review, vol. 6 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Book part
Publication date: 10 December 1998

D.A.G. Draper

Abstract

Details

Explaining Unemployment: Econometric Models for the Netherlands
Type: Book
ISBN: 978-1-84950-847-6

Article
Publication date: 7 January 2014

Supran Kumar Sharma and Raina Dalip

The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the…

1178

Abstract

Purpose

The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the post-reform period.

Design/methodology/approach

The present study is a novel attempt as it has used pooled data for a duration of 15 years (i.e. 1997/1998-2010/2011) from 59 selected banks for estimating the Hicks-Moorsteen (HM) total factor productivity (TFP) index.

Findings

Poor technical efficiency has experienced with scale efficiency change exerting dominant factors; whereas relatively better productivity growth has been experienced by the banks with major contributions from technical change components. The study found relatively underestimated efficiency and productivity levels by traditional data envelopment analysis-based Malmquist index. Additionally, the study brings into account the results for external and environmental determining factors contributing to the TFP growth.

Originality/value

Using HMTFP indices has helped to eliminate certain drawbacks of data envelopment and provided the more elaborative decomposition of productivity growth along with their components so as to have lucid and multidimensional insights about the performance of the Indian banking industry after the initiation of financial reforms.

Details

International Journal of Productivity and Performance Management, vol. 63 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 5 May 2015

Minjuan Zhao, Runsheng Yin, Liuyang Yao and Tao Xu

– The purpose of this paper is to assess how spatial heterogeneity and production diversification have affected the efficiency of households participating in the SLCP.

Abstract

Purpose

The purpose of this paper is to assess how spatial heterogeneity and production diversification have affected the efficiency of households participating in the SLCP.

Design/methodology/approach

Based on household survey data collected from three sample counties in the Loess Plateau region, the paper analyzes how spatial heterogeneity and business diversification have affected the production efficiency of households participating in the SLCP. Using four-step bootstrap, input stochastic distance frontiers of multi-inputs and multi-outputs are developed simultaneously with a technical efficiency effects model in which participating in the SLCP is treated as an exogenous variable.

Findings

The household production in the three counties is constrained by land, labor, capital, and fixed inputs; thus, it is germane to using a multi-input and multi-output household production technology to evaluate the SLCP. However, the relative importance of each input and output, the productive diversification, and the technological structure are differentiated in the three counties; estimating the regression with pooled data appears to conceal the influences of local factors and blur the specific divergence, compared to running county-based, separate regressions.

Research limitations/implications

The effects of the SLCP on farm household production are location dependent. It is necessary to include spatial heterogeneity within public policy evaluation. In addition to suggesting localized and differentiated schemes of subsidy, this implies that the government may provide means to facilitate different regions to make the economic transition.

Originality/value

This paper intends to make two contributions. First, the analysis will capture and explain the adjustments induced by the SLCP in off-farm and other activities for entire household production, and special attention is given to the diversification of household production outputs. Second, this analysis sheds new light to the significance of spatial differentiation in mediating the effectiveness of a public policy or program.

Details

China Agricultural Economic Review, vol. 7 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 January 2023

Mehdi Namazi, Madjid Tavana, Emran Mohammadi and Ali Bonyadi Naeini

New business practices and the globalization of markets force firms to take innovation as the fundamental pillar of their competitive strategy. Research and Development (R&D…

Abstract

Purpose

New business practices and the globalization of markets force firms to take innovation as the fundamental pillar of their competitive strategy. Research and Development (R&D) plays a vital role in innovation. As technology advances and product life cycles become shorter, firms rely on R&D as a strategy to invigorate innovation. R&D project portfolio selection is a complex and challenging task. Despite the management's efforts to implement the best project portfolio selection practices, many projects continue to fail or miss their target. The problem is that selecting R&D projects requires a deep understanding of strategic vision and technical capabilities. However, many decision-makers lack technological insight or strategic vision. This article aims to provide a method to capitalize on the expertise of R&D professionals to assist managers in making informed and effective decisions. It also provides a framework for aligning the portfolio of R&D projects with the organizational vision and mission.

Design/methodology/approach

This article proposes a new strategic approach for R&D project portfolio selection using efficiency-uncertainty maps.

Findings

The proposed strategy plane helps decision-makers align R&D project portfolios with their strategies to combine a strategic view and numerical analysis in this research. The proposed strategy plane consists of four areas: Exploitation Zone, Challenge Zone, Desperation Zone and Discretion Zone. Mapping the project into this strategic plane would help decision-makers align their project portfolio according to the corporate perspectives.

Originality/value

The new approach combines the efficiency and uncertainty dimensions in portfolio selection into an integrated framework that: (i) provides a complete representation of the stochastic decision-making processes, (ii) models the endogenous uncertainty inherent in the project selection process and (iii) proposes a computationally practical and visually unique solution procedure for classifying desirable and undesirable R&D projects.

Details

Benchmarking: An International Journal, vol. 30 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 28 September 2012

Amir Arjomandi, Charles Harvie and Abbas Valadkhani

The purpose of this paper is to investigate the efficiency and productivity growth of the Iranian banking industry between 2003 and 2008, encompassing pre‐ and post‐2005‐reform…

Abstract

Purpose

The purpose of this paper is to investigate the efficiency and productivity growth of the Iranian banking industry between 2003 and 2008, encompassing pre‐ and post‐2005‐reform years.

Design/methodology/approach

The study uses a new decomposition of the Hicks‐Moorsteen total factor productivity index developed by O'Donnell to analyse efficiency and productivity changes in a banking context. The advantage of this approach over the popular constant‐returns‐to‐scale Malmquist productivity index is that it is free from any assumptions concerning firms' optimising behaviour, the structure of markets, or returns to scale. The paper assumes that the production technology exhibits variable returns to scale.

Findings

The banking industry's technical efficiency level – which had improved between 2003 and 2006 – deteriorated after regulatory changes were introduced in Iran. The results obtained also show that during 2006‐2007, the industry's total factor productivity increased by 32 per cent. However, the industry experienced its highest negative scale efficiency rate of 38 per cent (ΔROSE=0.62) and its highest negative efficiency growth of 43 per cent (ΔEff=0.57) during this period. The industry also witnessed a strong drop in productivity in 2007‐2008. Overall, changes in the production possibility set and scale‐efficiency changes exerted dominant effects on productivity changes.

Originality/value

This study is the first to use a comprehensive decomposition of the Hicks‐Moorsteen TFP index to analyse efficiency and productivity changes in a banking context.

Details

Studies in Economics and Finance, vol. 29 no. 4
Type: Research Article
ISSN: 1086-7376

Keywords

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