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Assessing dynamic efficiency of the Spanish construction sector pre- and post-financial crisis

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  • Kapelko, Magdalena
  • Oude Lansink, Alfons G.J.M.
  • Stefanou, Spiro E.

Abstract

This paper estimates dynamic efficiency in the Spanish construction industry before and during the current financial crisis over the period 2001-2009. Static efficiency measures are biased in a context of a significant economic crisis with large investments and disinvestments as they do not account for costs in the adjustment of quasi-fixed factors. The results show that overall dynamic cost inefficiency is very high with technical inefficiency being the largest component, followed by allocative and scale inefficiency. Moreover, overall dynamic cost inefficiency is significantly larger before the beginning of the financial crisis than during the financial crisis. Results also show that larger firms are on average less technically and scale inefficient than smaller firms, but have more problems in choosing the mix of inputs that minimizes their long-term costs. Firms that went bankrupt, on average have a higher overall dynamic cost inefficiency and scale inefficiency than firms that did not go bankrupt.

Suggested Citation

  • Kapelko, Magdalena & Oude Lansink, Alfons G.J.M. & Stefanou, Spiro E., 2012. "Assessing dynamic efficiency of the Spanish construction sector pre- and post-financial crisis," 131st Seminar, September 18-19, 2012, Prague, Czech Republic 135790, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa131:135790
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    References listed on IDEAS

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    Citations

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    1. repec:wly:agribz:v:33:y:2017:i:4:p:505-521 is not listed on IDEAS
    2. Kapelko, Magdalena & Oude Lansink, Alfons & Stefanou, Spiro E., 2015. "Analyzing the impact of investment spikes on dynamic productivity growth," Omega, Elsevier, vol. 54(C), pages 116-124.
    3. Horta, Isabel M. & Camanho, Ana S., 2015. "A nonparametric methodology for evaluating convergence in a multi-input multi-output setting," European Journal of Operational Research, Elsevier, vol. 246(2), pages 554-561.
    4. repec:eee:jomega:v:74:y:2018:i:c:p:103-114 is not listed on IDEAS
    5. Kapelko, Magdalena & Oude Lansink, Alfons & Stefanou, Spiro, 2014. "The Impact of the 2008 Economic Crisis on Dynamic Productivity Growth of the Spanish Food Manufacturing Industry. An Impulse Response Analysis," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182769, European Association of Agricultural Economists.
    6. Kapelko, Magdalena & Oude Lansink, Alfons, 2017. "Dynamic multi-directional inefficiency analysis of European dairy manufacturing firms," European Journal of Operational Research, Elsevier, vol. 257(1), pages 338-344.
    7. repec:spr:cejnor:v:26:y:2018:i:1:d:10.1007_s10100-017-0473-z is not listed on IDEAS
    8. repec:kap:jproda:v:49:y:2018:i:1:d:10.1007_s11123-017-0519-1 is not listed on IDEAS
    9. Zubizarreta, Mikel & Cuadrado, Jesús & Iradi, Jon & García, Harkaitz & Orbe, Aimar, 2017. "Innovation evaluation model for macro-construction sector companies: A study in Spain," Evaluation and Program Planning, Elsevier, vol. 61(C), pages 22-37.
    10. repec:bla:pacecr:v:22:y:2017:i:4:p:649-676 is not listed on IDEAS
    11. Kapelko, M. & Horta, I.M. & Camanho, A.S. & Oude Lansink, A., 2015. "Measurement of input-specific productivity growth with an application to the construction industry in Spain and Portugal," International Journal of Production Economics, Elsevier, vol. 166(C), pages 64-71.
    12. Magdalena Kapelko, 2017. "Dynamic versus static inefficiency assessment of the Polish meat‐processing industry in the aftermath of the European Union integration and financial crisis," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 505-521, September.

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    Keywords

    dynamic efficiency; construction sector; Agribusiness; Agricultural and Food Policy;

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