Cartels, managerial incentives, and productive efficiency in German coal mining, 1881-1913
AbstractIn this paper, we evaluate the impact of cartelisation and managerial incentives on the productive efficiency of German coal mining corporations. We focus on coal mining in the Ruhr district, Germany’s main mining area. We use stochastic frontier analysis and an unbalanced dynamic panel data set for up to 28 firms for the years 1881-1913 to measure productive efficiency. We show that coal was mined with decreasing returns to scale. Moreover, it turns out that cartelisation did not affect productive efficiency. Controlling for corporate governance variables shows that stronger managerial incentives were significantly correlated with productive efficiency, whereas the debt-equity ratio did not influence it.
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Bibliographic InfoPaper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2008_13.
Length: 33 pages
Date of creation: Apr 2008
Date of revision:
Economic history; Germany pre-1913; Cartel; Productive efficiency; Corporate Governance;
Find related papers by JEL classification:
- N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
- L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-17 (All new papers)
- NEP-COM-2008-05-17 (Industrial Competition)
- NEP-EFF-2008-05-17 (Efficiency & Productivity)
- NEP-HIS-2008-05-17 (Business, Economic & Financial History)
- NEP-IND-2008-05-17 (Industrial Organization)
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