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Firm efficiency, industry performance and the economy: three-way decomposition with an application to Andalusia

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  • Antonio Amores

    ()

  • Thijs ten Raa

    ()

Abstract

An economy may perform better because the firms become more efficient, the industries are better organized, or the allocation between industries is improved. In this paper we extend the literature on the measurement of industry efficiency (a decomposition in firm contributions and an organizational effect) to a third level, namely that of the economy. The huge task of interrelating the performance of an economy to industrial firm data is accomplished for Andalusia. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Antonio Amores & Thijs ten Raa, 2014. "Firm efficiency, industry performance and the economy: three-way decomposition with an application to Andalusia," Journal of Productivity Analysis, Springer, vol. 42(1), pages 25-34, August.
  • Handle: RePEc:kap:jproda:v:42:y:2014:i:1:p:25-34
    DOI: 10.1007/s11123-014-0384-0
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    References listed on IDEAS

    as
    1. Li, Sung-ko & Cheng, Yuk-shing, 2007. "Solving the puzzles of structural efficiency," European Journal of Operational Research, Elsevier, vol. 180(2), pages 713-722, July.
    2. Thijs ten Raa & Pierre Mohnen, 2009. "Competition and Performance: The Different Roles of Capital and Labor," World Scientific Book Chapters,in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 20, pages 371-388 World Scientific Publishing Co. Pte. Ltd..
    3. Thijs ten Raa & Pierre Mohnen, 2009. "Neoclassical Growth Accounting and Frontier Analysis: A Synthesis," World Scientific Book Chapters,in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 19, pages 347-370 World Scientific Publishing Co. Pte. Ltd..
    4. Thijs ten Raa & José Manuel Rueda-Cantuche, 2009. "Stochastic Analysis of Input–Output Multipliers on the Basis of Use and Make Tables," World Scientific Book Chapters,in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 17, pages 307-326 World Scientific Publishing Co. Pte. Ltd..
    5. Shestalova, V., 2002. "Essays in productivity and efficiency," Other publications TiSEM 28d74701-2035-459f-b9f1-6, Tilburg University, School of Economics and Management.
    6. Sebastián Lozano & Gabriel Villa, 2004. "Centralized Resource Allocation Using Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 22(1), pages 143-161, July.
    7. Thijs Raa, 2011. "Benchmarking and industry performance," Journal of Productivity Analysis, Springer, vol. 36(3), pages 285-292, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Input–output; Industrial organization; Comparative advantage; Allocative efficiency; Efficiency decomposition; L10; D24; O47;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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