Multifactor productivity (MFP) growth is an imperative economic engine. MFP dynamism across five advanced and seven developing countries from 1996 to 2015 is analyzed, elucidating its association with financing and intangible assets. Debt is manifested by its inverted U-shaped nonlinear...

This paper formally proves that if inefficiency ($u$) is modelled through the variance of $u$ which is a function of $z$ then marginal effects of $z$ on technical inefficiency ($TI$) and technical efficiency ($TE$) have opposite signs. This is true in the typical setup with normally distributed...

This paper shows that rising real estate prices reduce industry productivity, because they lead to a reallocation of capital and labor towards inefficient firms. I establish that the rise in real estate value during the US housing boom relaxes firms’ financial constraints. Companies borrow...

The paper investigates whether the poor productivity performance of the European business services industry is related to scale effects, market structure, and regulatory impacts. We apply parametric and nonparametric methods to estimate the productivity frontier and so obtain the distance of...

The concept of a barrier to entry has been discussed least since Bain (1956) with important contributions by Spence (1977), Dixit (1980) or Milgrom and Roberts (1982). The more recent discussion is synthesized in the contributions to a dedicated session at the 2004 AEA meeting. Yet, a “barrier...

We investigate the determinants of firm absorptive capacity, with a particular focus on the effect of employee characteristics, and study how it affects a firm’s ability to generate new knowledge. Using administrative and national survey data on individuals and businesses, we first estimate...

This paper investigates the existence and the degree of economies of diversification for small-scaled, renewable-fuelled cogeneration systems using 2014 cross-sectional data from 67 Austrian biogas plants. In addition, cost efficiency of those biogas plants is estimated with a non-parametric...

We investigate factors from firm side that determine their financing pattern for new investment projects and their decision to choose formal, informal credit, or both. For financing pattern of new investment project, we use Random-effect model while Unordered-Multinomial Logistic is used to...