Money and Productive Efficiency: Evidence from a High-Inflation Country
AbstractThis paper examines how money balances held by manufacturing firms affect their efficiency in generating sales revenue in a high-inflation economy. The analysis employs data from Turkish firms to estimate a stochastic frontier model, finding a strong positive association between the firms' money holdings and their efficiency. However, the role of money balances seems to diminish as firms hold higher raw material inventories.
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Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.
Volume (Year): 43 (2007)
Issue (Month): 1 (February)
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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024
high inflation; inventories; manufacturing; money demand by firms; stochastic frontier estimation; Turkey;
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