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Macroeconomic Reform and Technical Efficiency in Australian - Riforme macroeconomiche ed efficienza tecnica nell’industria manifatturiera australiana – un’analisi stocastica della frontiera di produzione




The paper reports the empirical results of the validation of the Stochastic Production Frontier (SPF) Model to an unbalanced panel comprising a crosssection of 8 manufacturing industries over a time span of 26 years The results provide insights on the repercussions of the macro-economic reform policy agenda during the study period plagued by a productivity slowdown and the productivity resurgence due to the emergence of the ‘new economy’ and now the challenges to sharpen the manufacturing industries competitive edge to combat deindustrialization threats posed by globalization. The parametric SPF model facilitates the testing of hypotheses relating to the significance of firm-specific and industry-wide inefficiency effects, inequality constraints, and presence of technical change, x-efficiency or heterogeneity effects. Therefore, it is deemed to provide superior testable insights on productivity and technical inefficiency than the rival non-parametric Data Envelopment Analysis. - Questo studio esamina i risultati empirici della validazione del modello stocastico di frontiera di produzione (SPF) nei confronti di un panel di dati cross-section non bilanciato di 8 industrie manufatturiere in un intervallo di 26 anni. Tali risultati forniscono indicazioni sulle ripercussioni della riforma macro-economica dell’agenda politica durante il periodo considerato, caratterizzato da un calo e successivamente da una ripresa nella produttività dovuti all’emergenza della new economy e attualmente dalla sfida della globalizzazione. Il modello parametrico SPF facilita l’effettuazione di test sulle ipotesi concernenti gli effetti delle inefficienze. Quindi questo modello può essere ritenuto in grado di fornire indicazioni, circa la produttività e l’efficienza tecnica, superiori dal punto di vista della testabilità a quelle fornite dal modello alternativo di Data Envelopment Analysis.

Suggested Citation

  • Karunaratne, Neil Dias, 2013. "Macroeconomic Reform and Technical Efficiency in Australian - Riforme macroeconomiche ed efficienza tecnica nell’industria manifatturiera australiana – un’analisi stocastica della frontiera di produzi," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 66(3), pages 345-369.
  • Handle: RePEc:ris:ecoint:0695

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    References listed on IDEAS

    1. Riccardo Soliani & Alessia Di Gennaro & Enrico Ivaldi, 2012. "An Index of the Quality of Life for European Countries: Evidence of Deprivation from EU-SILC Data," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 1-14, May.
    2. Henry Kaiser, 1958. "The varimax criterion for analytic rotation in factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 23(3), pages 187-200, September.
    3. Angela Testi & Enrico Ivaldi, 2009. "Material versus social deprivation and health: a case study of an urban area," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 10(3), pages 323-328, July.
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    More about this item


    Stochastic Production Frontier Models; Data Envelopment Analysis; Microeconomic Reform; Productivity; Technical Change; Technical Inefficiency; Manufacturing Industries; Australia;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General


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