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Recent Developments in Productivity and the Role of Entrepreneurship in Italy: An Industry View

Author

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  • Andrea Brasili

    (UniCredit Group, Milan)

  • Loredana Federico

    (UniCredit Group, Milan)

Abstract

This paper explores the existing interplay between productivity trends across Italian industries, in the decade 1995-2005, and entrepreneurship, highlighting the urgent need for a revival in entrepreneurial capital in some industries. Initially, we consider as a measure of entrepreneurship the birth rates for different industries; this proxy proved to be a significant explanatory variable of a sector’s efficiency. We then attempt to extract a measure of managerial ability directly from the data, considering it as an unobservable and using Bayesian techniques to perform the estimation, which further reinforces the previous results.

Suggested Citation

  • Andrea Brasili & Loredana Federico, 2008. "Recent Developments in Productivity and the Role of Entrepreneurship in Italy: An Industry View," Rivista di Politica Economica, SIPI Spa, vol. 98(2), pages 179-214, March-Apr.
    • Handle: RePEc:rpo:ripoec:v:98:y:2008:i:2:p:179-214
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    File URL: http://www.rivistapoliticaeconomica.it/2008/mar-apr/Brasili-Federico.pdf
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    References listed on IDEAS

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    2. Chib, Siddhartha & Greenberg, Edward, 1995. "Hierarchical analysis of SUR models with extensions to correlated serial errors and time-varying parameter models," Journal of Econometrics, Elsevier, vol. 68(2), pages 339-360, August.
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    6. Mr. Marcello M. Estevão, 2004. "Why is Productivity Growth in the Euro Area so Sluggish?," IMF Working Papers 2004/200, International Monetary Fund.
    7. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
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    Cited by:

    1. Raffaela Giordano & Sergi Lanau & Pietro Tommasino & Petia Topalova, 2020. "Does public sector inefficiency constrain firm productivity? Evidence from Italian provinces," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 1019-1049, August.
    2. Mr. Sergi Lanau & Petia Topalova, 2016. "The Impact of Product Market Reforms on Firm Productivity in Italy," IMF Working Papers 2016/119, International Monetary Fund.

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    More about this item

    Keywords

    entrepreneurship; productivity growth; stochastic frontiers; Bayesian analysis; Gibbs sampling.;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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