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Money and Productive Efficiency: Evidence from a High-Inflation Country

Listed author(s):
  • Erdem BaÅçi
  • Syed F. Mahmud
  • Eray M. Yucel

This 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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File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=9556772077384155
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Article provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.

Volume (Year): 43 (2007)
Issue (Month): 1 (February)
Pages: 64-73

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Handle: RePEc:mes:emfitr:v:43:y:2007:i:1:p:64-73
Contact details of provider: Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024

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