Productivity Change over Time and the Dynamics of Cost Competitiveness: A Nonparametric Analysis of U.S. Manufacturing Data
AbstractFirms within a state, states within a country, and countries across the world are continuously striving to enhance their competitiveness in the present age of globalization. This paper defines competitiveness of a production unit as the relative cost of production per unit of output. Basic concepts from neoclassical production economics are used to provide a detailed decomposition of cost competitiveness of a firm relative to a rival. It is also shown how changes in efficiency and relative input prices along with technical change affect the evolution of cost competitiveness of a firm over time. State level data from the U.S. Census of Manufacturers from the years 1992, 1997, 2002, and 2007 are used in a empirical application of the proposed methodology using Data Envelopment Analysis. JEL Classification: C61, L25, O14 Key words: Data Envelopment Analysis, Cost Efficiency, Technical Change
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Bibliographic InfoPaper provided by University of Connecticut, Department of Economics in its series Working papers with number 2012-39.
Length: 31 pages
Date of creation: Nov 2012
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Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-15 (All new papers)
- NEP-BEC-2012-12-15 (Business Economics)
- NEP-EFF-2012-12-15 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ray, Subhash C. & Chen, Lei & Mukherjee, Kankana, 2008.
"Input price variation across locations and a generalized measure of cost efficiency,"
International Journal of Production Economics,
Elsevier, vol. 116(2), pages 208-218, December.
- Subhash C. Ray & Lei Chen & Kankana Mukherjee, 2008. "Input Price Variation Across Locations and a Generalized Measure of Cost Efficiency," Working papers 2008-11, University of Connecticut, Department of Economics.
- E. Grifell-Tatjé & C.A.K. Lovell, 2000. "Cost and productivity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(1), pages 19-30.
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