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Differences in Productivity Between Efficient and Inefficient Firms

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  • Alvarez, Antonio
  • Orea, Luis

Abstract

Standard microeconomic theory does not deal with the behavior of inefficient firms. However it would be useful to know would happens to an inefficient firm if this firm grows or the effects of policy changes. In this paper we develop a model that allows the different behavior of efficient and inefficient firms to be compared.

Suggested Citation

  • Alvarez, Antonio & Orea, Luis, 2004. "Differences in Productivity Between Efficient and Inefficient Firms," Efficiency Series Papers 2004/05, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2004/05
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    File URL: https://www.unioviedo.es/oeg/ESP/esp_2004_05.pdf
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    References listed on IDEAS

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