Money and Productive Efficiency: Evidence from a High-Inflation Country
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.
Volume (Year): 43 (2007)
Issue (Month): 1 (February)
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