Environmental investment and firm performance: A network approach
|
|
- Abel Warner
- 5 years ago
- Views:
Transcription
1 Environmental investment and firm performance: A network approach Moriah Bostian 1 Rolf Färe 2 Shawna Grosskopf 2 Tommy Lundgren 3 1 Department of Economics, Lewis & Clark College and University of Turku 2 Department of Economics, Oregon State University 3 Centre for Environmental and Resource Economics, Umeå University June 17, 2015
2 Introduction Reductions to energy use and emissions often require investment in new production methods. Environmental investments may spur innovations that increase productivity, through design improvements and spillover effects (Clarke et al., 2006). We introduce firm-level investments, both environmental and production oriented, into a network production model to better account for their role in: productivity, efficiency change and technology change energy efficiency environmental performance We apply this framework to firm-level data on Swedish manufacturing.
3 Introduction Existing environmental network studies include: Murty et al. (2012) develop a bi-production technology, connecting conventional production to a pollution-generating technology. Färe et al. (2013) break the technology into a production stage and an abatement stage. Hampf (2014) incorporates a materials balance condition into a similar two-stage network. This study connects the production technologies for good and bad outputs through intertemporal investment decisions.
4 Environmental Investments and Expenditures Environmental investments: - Pollution treatment, or end-or-pipe techniques (e.g., air filters and scrubbers) - Pollution prevention processes (e.g., fuel switching/saving equipment and re-circulation of process gases) Environmental expenditures: - Operating costs of existing environmental equipment, internal monitoring, personnel training, and remediation costs. (Juraite et al., 2014)
5 Modeling Framework We model the production technology,t, for time period t as T t = { (x t, i t 1, y t, u t ) : x t and i t 1 can produce y t and u t}, x t = (x1 t,..., x N t ) denotes current period resource inputs i t 1 is total investment from the previous period y t = (y1 t,..., y M t ) is current period production output u t = (u1 t,..., ut J ) is current period pollution emissions. We further decompose the technology: i t = pi t + ei t, production and environmental investments x t = ex t + ox t, energy inputs and other inputs
6 Modeling Framework Figure : The Environmental Investment Technology Network We estimate the network technology nonparametrically, using Data Envelopment Analysis (DEA) methods (Charnes et al., 1978).
7 DEA Network Technology Model T t ={y t, u t, x t, pi t 1, ei t 1 } : K ym t zk t y km t, m = 1,..., M, K uj t = z t k ut kj, j = 1,..., J, K xn t zk t x kn t, n = 1,..., N, K pi t 1 K ei t 1 z t k z t k z t k pi t 1 k, ei t q k, 0, k = 1,..., K.
8 Network Technology Indexes Our performance indexes are based on quantity indexes, constructed from distance functions (Shephard, 1970), for production output, energy use and pollution emissions. Beginning with production output, y, in time period τ, we let D τ y (x τ, i τ 1, y τ, u τ ) = inf {θ : (x τ, i τ 1, y τ θ, uτ ) T τ } θ measures the feasible proportional increase in current production output, given current inputs, previous investment, and the production technology. 0 θ 1 and θ = 1 at the frontier.
9 Production Output Distance Estimation (D t y (x t, i t 1, y t, u t )) 1 = max θ K θyk t m zk t y km t, m = 1,..., M, u t k j = K z t k ut kj, j = 1,..., J, K xk t n zk t x kn t, n = 1,..., N, ei t 1 k pi t 1 k z t k K K z t k z t k ei t 1 k, pi t 1 k, 0, k = 1,..., K.
10 Malmquist Productivity Index This gives rise to the widely applied Malmquist (1953) productivity index, adapted to our network setting, M y (τ, τ + 1) = [( ) ( D τ y (x τ+1, i τ, y τ+1, u τ+1 ) D τ+1 D τ y (x τ, i τ 1, y τ, u τ ) where efficiency change is measured as y (x τ+1, i τ, y τ+1, u τ+1 ) D τ+1 y (x τ, i τ 1, y τ, u τ ) EC y (τ, τ + 1) = Dτ+1 y (x τ+1, i τ, y τ+1, u τ+1 ) Dy τ (x τ, i τ 1, y τ, u τ, ) and technology change is TC y (τ, τ + 1) = [( D τ y (x τ+1, i τ, y τ+1, u τ+1 ) D τ+1 y (x τ+1, i τ, y τ+1, u τ+1 ) ) ( D τ y (x τ, i τ 1, y τ, u τ ) )] 1 2, )] 1 2 Dy τ+1. (x τ, i τ 1, y τ, u τ )
11 Energy Efficiency Index (EEI) To measure energy efficiency, we consider feasible contractions of energy use, given other inputs, investment and outputs using D τ ex(ex τ, ox τ, i τ 1, y τ, u τ ) = sup{λ : ( ex τ λ, ox τ, i τ 1, y τ, u τ ) T τ }, λ 1 and λ = 1 at the frontier.
12 Energy Input Distance Estimation (D ex (ex t, ox t, i t 1, y t, )) 1 = min λ, s.t. K yk t m zk t y km t, m = 1,..., M, u t k j = K z t k ut kj, j = 1,..., J, K xk t n zk t x kn t, n = 1,..., N 1, K λexk t zk t ex k t, ei t 1 k pi t 1 K z t k ei t 1 k, K z t pi t 1,
13 Energy Efficiency Index (EEI) We measure energy efficiency change similarly, using the energy efficiency index (EEI), EEI (τ, τ + 1) = D ex (ex τ, ox τ, i τ 1, y τ, u τ ) D ex (ex τ+1, ox τ+1, i τ, y τ+1, u τ+1 ), EEI values greater than one indicate improvements to energy efficiency.
14 Environmental Performance Index (EPI) To measure environmental performance, we construct quantity indexes for both desirable and undesirable outputs. Our desirable quantity index is written as Q y (τ, τ + 1) = Dτ+1 y (x τ+1, i τ, y τ+1, u τ+1 ) Dy τ (x τ, i τ 1, y τ, u τ. )
15 Environmental Performance Index (EPI) For pollution emissions, we measure feasible contractions, given inputs, investment, and production output with D τ u (x τ, i τ 1, y τ, u τ ) = sup{δ : (x τ, i τ 1, y τ, uτ δ ) T τ }. δ 1 and δ = 1 at the frontier.
16 Pollution Output Distance Estimation (D u (x t, i t 1, y t, u t )) 1 = min δ s.t. K yk t m zk t y km t, m = 1,..., M, K xk t n zk t x kn t, n = 1,..., N, δu t k j = K ei t 1 k pi t 1 k z t k K K z t k ut kj z t k z t k, j = 1,..., J, ei t 1 k, pi t 1 k, 0, k = 1,..., K,
17 Environmental Performance Index (EPI) The corresponding pollution quantity index is Q u (τ, τ + 1) = Dτ+1 u (x τ+1, i τ, fy τ+1, u τ+1 ) Du τ (x τ, i τ 1, y τ, u τ. ) Note that Q u (τ, τ + 1) < 1 indicates improvement.
18 Environmental Performance Index (EPI) We then construct the EPI as the ratio of good to bad quantity indexes, following Färe et al. (2006; 2010) as, EPI (y τ, y τ+1, u τ, u τ+1 ) = Q y (τ, τ + 1) Q u (τ, τ + 1). An EPI value greater than 1 indicates a relative increase in goods to bads.
19 Application to Swedish Manufacturing Firms We apply our environmental investment network technology and associated performance index framework to an unbalanced panel of 66 firms from Sweden s Pulp and Paper manufacturing sector, for the years Our data includes at the plant level: Expenditures for standard production and energy inputs Expenditures for environmental management practices and environmental investments Emissions of CO 2, SO 2, and NO X
20 Application to Swedish Manufacturing Firms Capital and Output are measured in M 2008 SEK. Environmental Investments and Expenditures are measured in 1,000s 2008 SEK. Table : Summary Statistics, Variable Median Mean Min Max Capital , , Labor , Energy (MWH) 369, , , ,319, EnvExp 9, , , Env. Inv. 1,962 17, , Output 120, , , ,228, CO2 (T) 20, , , SO2 (T) NOX (T)
21 Index Results Table : Industry Geometric Means by Year Year Malm. EffCh. TechCh. EEI EPI Qy Qb The Malmquist means indicate a slight overall decline in productivity, driven more by a decrease in Technology. The EEI results indicate general improvements to energy efficiency; the EPI indicates an overall decline to environmental performance, due largely to the period.
22 Industry Trends Figure : Malmquist Industry Cumulative Geometric Means
23 Industry Trends Figure : Malmquist, EEI and EPI Cumulative Geometric Means
24 Index Results at the Plant Level Figure : EPI and Malmquist Results at the Plant Level
25 Index Results at the Plant Level Figure : EEI and Malmquist Results at the Plant Level
26 Index Results at the Plant Level Figure : EEI and EPI Results at the Plant Level
27 Conclusion We develop a network technology representation to measure energy efficiency, environmental performance and productivity change, accounting for intertemporal investment decisions. For firms in Sweden s pulp and paper sector, we find: General improvements to energy efficiency Overall decline in environmental performance Slight decline to overall productivity Positive relationship between energy efficiency, environmental performance, and productivity
28 Conclusion To our knowledge, this is the first study to include environmental investments in a network environmental technology framework. Future extensions include: Integrating the investment network with an abatement technology network. Incorporate dynamic optimization, to estimate optimal investment time paths, for both environmental and production objectives.
Data Envelopment Analysis within Evaluation of the Efficiency of Firm Productivity
Data Envelopment Analysis within Evaluation of the Efficiency of Firm Productivity Michal Houda Department of Applied Mathematics and Informatics Faculty of Economics, University of South Bohemia in Česé
More informationCHAPTER 3 THE METHOD OF DEA, DDF AND MLPI
CHAPTER 3 THE METHOD OF DEA, DDF AD MLP 3.1 ntroduction As has been discussed in the literature review chapter, in any organization, technical efficiency can be determined in order to measure the performance.
More informationOptimization Models Applied to Productivity and the Environment
Optimization Models Applied to Productivity and the Environment Rolf Färe, and Shawna Grosskopf Department of Economics Department of Agricultural and Resource Economics Oregon State University Corvallis,
More informationCHAPTER 4 MEASURING CAPACITY UTILIZATION: THE NONPARAMETRIC APPROACH
49 CHAPTER 4 MEASURING CAPACITY UTILIZATION: THE NONPARAMETRIC APPROACH 4.1 Introduction: Since the 1980's there has been a rapid growth in econometric studies of capacity utilization based on the cost
More informationModeling undesirable factors in efficiency evaluation
European Journal of Operational Research142 (2002) 16 20 Continuous Optimization Modeling undesirable factors in efficiency evaluation Lawrence M. Seiford a, Joe Zhu b, * www.elsevier.com/locate/dsw a
More informationCentre for Efficiency and Productivity Analysis
Centre for Efficiency and Productivity Analysis Working Paper Series No. WP09/2015 Multiple Directions for Measuring Biased Technical Change Hideyuki Mizobuchi Date: November 2015 School of Economics University
More informationAngelo Zago University of Verona - Italy
Quality Estimation and Wine Industry Competitiveness Angelo Zago University of Verona - Italy Davis, August 9, 2007 Work in progress 1. Motivation Measuring and evaluating the quality attributes of raw
More informationDepartment of Economics Working Paper Series
Department of Economics Working Paper Series Comparing Input- and Output-Oriented Measures of Technical Efficiency to Determine Local Returns to Scale in DEA Models Subhash C. Ray University of Connecticut
More informationDarmstadt Discussion Papers in ECONOMICS
Darmstadt Discussion Papers in ECONOMICS Optimal Directions for Directional Distance Functions: An Exploration of Potential Reductions of Greenhouse Gases Benjamin Hampf and Jens J. Krüger Nr. 216 Arbeitspapiere
More informationModeling Dynamic Production Systems with Network Structure
Iranian Journal of Mathematical Sciences and Informatics Vol. 12, No. 1 (2017), pp 13-26 DOI: 10.7508/ijmsi.2017.01.002 Modeling Dynamic Production Systems with Network Structure F. Koushki Department
More informationWARWICK ECONOMIC RESEARCH PAPERS
On the theory of a firm: The case of by-production of emissions. Sushama Murty No 934 WARWICK ECONOMIC RESEARCH PAPERS DEPARTMENT OF ECONOMICS On the theory of a firm: The case of by-production of emissions.
More informationCentre for Efficiency and Productivity Analysis
Centre for Efficiency and Productivity Analysis Working Paper Series No. WP02/2013 Scale Efficiency and Homotheticity: Equivalence of Primal and Dual Measures Valentin Zelenyuk Date: February 2013 School
More informationRobust Nonparametric Estimation of Efficiency and Technical Change in U.S. Commercial Banking
WORKING PAPER SERIES Robust Nonparametric Estimation of and Technical Change in U.S. Commercial Banking David C. Wheelock and Paul W. Wilson Working Paper 2003-037A http://research.stlouisfed.org/wp/2003/2003-037.pdf
More informationDecomposing Malmquist Productivity Indexes into Explanatory Factors
1 Decomposing Malmquist Productivity Indexes into Explanatory Factors September 16, 2013 Erwin Diewert, 1 Kevin Fox, Discussion Paper 13-09, School of Economics, School of Economics, University of New
More informationbit , ( Gupta, Verhoeven, 1999 ; Afonso, Aubyn, 2006 ) ( Hsu Hsueh,2008) ( Prieto Zofio,2001),, (2004) (2006) , (2008) X - Feb.
18 1 2010 2 Chinese Journal of Management Science :1003-207 (2010) 01-0026 - 07 18, No. 1 Vol. Feb., 2010 : 1,2 (11, 400020 ; 21, 400716) : DEA - TOBIT,1993-2007 ;, ; TOBIT,, : ; ; DEA ; TOBIT : F81217
More informationSubhash C Ray Department of Economics University of Connecticut Storrs CT
CATEGORICAL AND AMBIGUOUS CHARACTERIZATION OF RETUNS TO SCALE PROPERTIES OF OBSERVED INPUT-OUTPUT BUNDLES IN DATA ENVELOPMENT ANALYSIS Subhash C Ray Department of Economics University of Connecticut Storrs
More informationDepartment of Social Systems and Management. Discussion Paper Series
Department of Social Systems and Management Discussion Paper Series No. 1128 Measuring the Change in R&D Efficiency of the Japanese Pharmaceutical Industry by Akihiro Hashimoto and Shoko Haneda July 2005
More informationResearch Article A Data Envelopment Analysis Approach to Supply Chain Efficiency
Advances in Decision Sciences Volume 2011, Article ID 608324, 8 pages doi:10.1155/2011/608324 Research Article A Data Envelopment Analysis Approach to Supply Chain Efficiency Alireza Amirteimoori and Leila
More informationMarket Structure and Productivity: A Concrete Example. Chad Syverson
Market Structure and Productivity: A Concrete Example. Chad Syverson 2004 Hotelling s Circular City Consumers are located uniformly with density D along a unit circumference circular city. Consumer buys
More informationChapter 11: Benchmarking and the Nonparametric Approach to Production Theory
1 APPLIED ECONOMICS By W.E. Diewert. 1 July, 2013. Chapter 11: Benchmarking and the Nonparametric Approach to Production Theory 1. Introduction Data Envelopment Analysis or (DEA) is the term used by Charnes
More informationMeasuring the efficiency of assembled printed circuit boards with undesirable outputs using Two-stage Data Envelopment Analysis
Measuring the efficiency of assembled printed circuit boards with undesirable outputs using Two-stage ata Envelopment Analysis Vincent Charles CENTRUM Católica, Graduate School of Business, Pontificia
More information30E00300 Productivity and Efficiency Analysis Abolfazl Keshvari, Ph.D.
30E00300 Productivity and Efficiency Analysis 2016 Abolfazl Keshvari, Ph.D. abolfazl.keshvari@aalto.fi Mathematics and statistics We need to know some basics of math and stat What is a function, and its
More informationStructural change in a multi-sector model of the climate and the economy
Structural change in a multi-sector model of the climate and the economy Gustav Engström The Beijer Institute of Environmental Economics Stockholm, December 2012 G. Engström (Beijer) Stockholm, December
More informationDynamics of Dairy Farm Productivity Growth. Johannes Sauer
Dynamics of Dairy Farm Productivity Growth Analytical Implementation Strategy and its Application to Estonia Johannes Sauer Professor and Chair Agricultural Production and Resource Economics Center of
More informationWORKING PAPER SERIES 2014-EQM-07
November 2014 WORKING PAPER SERIES 2014-EQM-07 Environmental Growth Convergence among Chinese Regions Jean-Philippe Boussemart University of Lille 3 and IESEG School of Management (LEM-CNRS) Hervé Leleu
More informationRevenue Malmquist Index with Variable Relative Importance as a Function of Time in Different PERIOD and FDH Models of DEA
Revenue Malmquist Index with Variable Relative Importance as a Function of Time in Different PERIOD and FDH Models of DEA Mohammad Ehsanifar, Golnaz Mohammadi Department of Industrial Management and Engineering
More informationThe Demand- and Supply-Side Spatial Spillovers in the Food Processing Industry in Korea:
The Demand- and Supply-Side Spatial Spillovers in the Food Processing Industry in Korea: An Empirical Evidence from Both Local Level and Individual Firm Level by Donghwan An, Kwansoo Kim, and OhSang Kwon
More informationMore Technical Efficiency and Data Envelopment Analysis (DEA)
More Technical Efficiency and Data Envelopment Analysis (DEA) based on OnFront, Reference Guide Coelli, et al., Introduction to Efficiency and Productivity Springer, 2005, Ch 6. April 22, 2008 Technology:
More informationUCLA Recent Work. Title. Permalink. Authors. Publication Date. Measuring Eco-inefficiency: A New Frontier Approach
UCLA Recent Work Title Measuring Eco-inefficiency: A New Frontier Approach Permalink https://escholarship.org/uc/item/3r22v65j Authors Chen, Chien-Ming Delmas, Magali A Publication Date 2011-01-19 escholarship.org
More informationTutorial #5 Undesirable Outcomes and Production Theory
Tutorial #5 Undesirable Outcomes and Production Theory Finn R. Førsund University of Oslo * lides prepared for the 14 th International DEA Conference Jianhang University, Wuhan, China ay 23-26, 2016 Desirable
More informationDarmstadt Discussion Papers in ECONOMICS
Darmstadt Discussion Papers in ECONOMICS Direct Targeting of Efficient DMUs for Benchmarking Jens J. Krüger Nr. 229 Arbeitspapiere der Volkswirtschaftlichen Fachgebiete der TU Darmstadt ISSN: 1438-2733
More informationKnowledge licensing in a Model of R&D-driven Endogenous Growth
Knowledge licensing in a Model of R&D-driven Endogenous Growth Vahagn Jerbashian Universitat de Barcelona June 2016 Early growth theory One of the seminal papers, Solow (1957) discusses how physical capital
More informationThe Aggregate Implications of Innovative Investment. September 2017
The Aggregate Implications of Innovative Investment Andrew Atkeson UCLA, NBER, Fed MPLS Ariel Burstein UCLA, NBER September 2017 Introduction How much can we change the path of aggregate productivity and
More informationRising Wage Inequality and the Effectiveness of Tuition Subsidy Policies:
Rising Wage Inequality and the Effectiveness of Tuition Subsidy Policies: Explorations with a Dynamic General Equilibrium Model of Labor Earnings based on Heckman, Lochner and Taber, Review of Economic
More informationESTIMATING ELASTICITIES OF INPUT SUBSTITUTION USING DATA ENVELOPMENT ANALYSIS NOAH JAMES MILLER
ESTIMATING ELASTICITIES OF INPUT SUBSTITUTION USING DATA ENVELOPMENT ANALYSIS by NOAH JAMES MILLER B.A., University of Oklahoma, 007 M.Sc., The London School of Economics, 011 A THESIS submitted in partial
More informationOn pollution and R&D-based growth in a trade model between countries concerned and unconcerned about climate change
On pollution and R&D-based growth in a trade model between countries concerned and unconcerned about climate change Francisco Cabo 1 Guiomar Martín-Herrán 1 M.Pilar Martínez-García 2 1 IMUVa, Dpt. Economía
More informationNEGATIVE DATA IN DEA: A SIMPLE PROPORTIONAL DISTANCE FUNCTION APPROACH. Kristiaan Kerstens*, Ignace Van de Woestyne**
Document de travail du LEM 2009-06 NEGATIVE DATA IN DEA: A SIMPLE PROPORTIONAL DISTANCE FUNCTION APPROACH Kristiaan Kerstens*, Ignace Van de Woestyne** *IÉSEG School of Management, CNRS-LEM (UMR 8179)
More informationTHE SOLOW-SWAN MODEL WITH A NEGATIVE LABOR GROWTH RATE
Journal of Mathematical Sciences: Advances and Applications Volume 9, Number /,, Pages 9-38 THE SOLOW-SWAN MODEL WITH A NEGATIVE LABOR GROWTH RATE School of Economic Mathematics Southwestern University
More informationOn Spatial Dynamics. Klaus Desmet Universidad Carlos III. and. Esteban Rossi-Hansberg Princeton University. April 2009
On Spatial Dynamics Klaus Desmet Universidad Carlos and Esteban Rossi-Hansberg Princeton University April 2009 Desmet and Rossi-Hansberg () On Spatial Dynamics April 2009 1 / 15 ntroduction Economists
More informationDynamic (Stochastic) General Equilibrium and Growth
Dynamic (Stochastic) General Equilibrium and Growth Martin Ellison Nuffi eld College Michaelmas Term 2018 Martin Ellison (Nuffi eld) D(S)GE and Growth Michaelmas Term 2018 1 / 43 Macroeconomics is Dynamic
More informationABSTRACT INTRODUCTION
Implementation of A Log-Linear Poisson Regression Model to Estimate the Odds of Being Technically Efficient in DEA Setting: The Case of Hospitals in Oman By Parakramaweera Sunil Dharmapala Dept. of Operations
More informationThe economy is populated by a unit mass of infinitely lived households with preferences given by. β t u(c Mt, c Ht ) t=0
Review Questions: Two Sector Models Econ720. Fall 207. Prof. Lutz Hendricks A Planning Problem The economy is populated by a unit mass of infinitely lived households with preferences given by β t uc Mt,
More informationISSN Article. Bayesian Approach to Disentangling Technical and Environmental Productivity
Econometrics 2015, 3, 443-465; doi:10.3390/econometrics3020443 OPEN ACCESS econometrics ISSN 2225-1146 www.mdpi.com/journal/econometrics Article Bayesian Approach to Disentangling Technical and Environmental
More informationDiscrete-Time Finite-Horizon Optimal ALM Problem with Regime-Switching for DB Pension Plan
Applied Mathematical Sciences, Vol. 10, 2016, no. 33, 1643-1652 HIKARI Ltd, www.m-hikari.com http://dx.doi.org/10.12988/ams.2016.6383 Discrete-Time Finite-Horizon Optimal ALM Problem with Regime-Switching
More informationLUENBERGER AND MALMQUIST PRODUCTIVITY INDICES: THEORETICAL COMPARISONS AND EMPIRICAL ILLUSTRATION
# Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research 2003. Published by Blackwell Publishing, 9600 Garsington Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden,
More informationNonparametric Measures of Capacity Utilization: A Dual Approach
Universit of Connecticut DigitalCommons@UConn Economics Working Papers Department of Economics October 22 onparametric Measures of Capacit Utilization: A Dual Approach Subhash C. Ra Universit of Connecticut
More informationAdditional Material for Estimating the Technology of Cognitive and Noncognitive Skill Formation (Cuttings from the Web Appendix)
Additional Material for Estimating the Technology of Cognitive and Noncognitive Skill Formation (Cuttings from the Web Appendix Flavio Cunha The University of Pennsylvania James Heckman The University
More informationEconomic transition following an emission tax in a RBC model with endogenous growth. EC-IILS JOINT DISCUSSION PAPER SERIES No. 17
International Labour Organization European Union International Institute for Labour Studies Economic transition following an emission tax in a RBC model with endogenous growth EC-IILS JOINT DISCUSSION
More informationA New Method for Optimization of Inefficient Cost Units In The Presence of Undesirable Outputs
Available online at http://ijim.srbiau.ac.ir/ Int. J. Industrial Mathematics (ISSN 2008-5621) Vol. 10, No. 4, 2018 Article ID IJIM-01173, 8 pages Research Article A New Method for Optimization of Inefficient
More informationEnvironmental Policy under Imperfect Information: Incentives and Moral hazard. A. Xepapadeas (1991)
Environmental Policy under Imperfect Information: Incentives and Moral hazard A. Xepapadeas (1991) Introduction Env.Policy Implementation can be achieved through di erent instruments (control agency).
More informationSpecial Cases in Linear Programming. H. R. Alvarez A., Ph. D. 1
Special Cases in Linear Programming H. R. Alvarez A., Ph. D. 1 Data Envelopment Analysis Objective To compare technical efficiency of different Decision Making Units (DMU) The comparison is made as a function
More informationPRODUCTION WITH STORABLE AND DURABLE INPUTS: NONPARAMETRIC ANALYSIS OF INTERTEMPORAL EFFICIENCY
PRODUCTION WITH STORABLE AND DURABLE INPUTS: NONPARAMETRIC ANALYSIS OF INTERTEMPORAL EFFICIENCY LAURENS CHERCHYE, BRAM DE ROCK, AND PIETER JAN KERSTENS Abstract. We propose a nonparametric methodology
More informationWas the bell system a natural monopoly? An application of data envelopment analysis
Ann Oper Res (2006) 145:251 263 DOI 10.1007/s10479-006-0033-8 Was the bell system a natural monopoly? An application of data envelopment analysis Hsihui Chang Raj Mashruwala Published online: 23 June 2006
More informationA Unifying Framework for Farrell Profit Efficiency Measurement
A Unifying Framework for Farrell Profit Efficiency Measurement Rolf Färe a, Xinju He b, Sungko Li b, Valentin Zelenyuk c Abstract Measuring profit efficiency is a challenging task and many different approaches
More informationMicroeconomic Theory. Microeconomic Theory. Everyday Economics. The Course:
The Course: Microeconomic Theory This is the first rigorous course in microeconomic theory This is a course on economic methodology. The main goal is to teach analytical tools that will be useful in other
More informationLecture 05 Cost Concepts for Decision Making. C r = MRTS LK, w MPL
Lecture 05 Cost Concepts for Decision Making 1. Costs a) Explicit costs which involve a direct monetary outlay. Indirect costs that do not involve outlays of cash. b) Accounting Costs (total sum of explicit
More informationAlternative Efficiency Measures for Multiple-Output Production
Alternative Efficiency Measures for Multiple-Output Production Carmen Fernández Department of Mathematics and Statistics, Lancaster University, Lancaster, LA1 4YF, U.K. Gary Koop Department of Economics,
More informationOne-Sector Models of Endogenous Growth. Instructor: Dmytro Hryshko
One-Sector Models of Endogenous Growth Instructor: Dmytro Hryshko 1 Mid-1980s: dissatisfaction with exogenously driven explanations of long-run productivity growth. 2 It led to construction of models in
More information5.3 Linear Programming in Two Dimensions: A Geometric Approach
: A Geometric Approach A Linear Programming Problem Definition (Linear Programming Problem) A linear programming problem is one that is concerned with finding a set of values of decision variables x 1,
More informationDepartment of Economics Working Paper Series
Department of Economics Working Paper Series A Simple Statistical Test of Violation of the Weak Axiom of Cost Minimization Subhash C. Ray University of Connecticut Working Paper 2004-17 February 2004 341
More informationAdvanced Economic Growth: Lecture 3, Review of Endogenous Growth: Schumpeterian Models
Advanced Economic Growth: Lecture 3, Review of Endogenous Growth: Schumpeterian Models Daron Acemoglu MIT September 12, 2007 Daron Acemoglu (MIT) Advanced Growth Lecture 3 September 12, 2007 1 / 40 Introduction
More informationControl Systems I. Lecture 7: Feedback and the Root Locus method. Readings: Jacopo Tani. Institute for Dynamic Systems and Control D-MAVT ETH Zürich
Control Systems I Lecture 7: Feedback and the Root Locus method Readings: Jacopo Tani Institute for Dynamic Systems and Control D-MAVT ETH Zürich November 2, 2018 J. Tani, E. Frazzoli (ETH) Lecture 7:
More informationChapter 3 Task 1-4. Growth and Innovation Fridtjof Zimmermann
Chapter 3 Task 1-4 Growth and Innovation Fridtjof Zimmermann Recept on how to derive the Euler-Equation (Keynes-Ramsey-Rule) 1. Construct the Hamiltonian Equation (Lagrange) H c, k, t, μ = U + μ(side Condition)
More informationA short training on efficiency and productivity analyses 1. Introduction
A short training on efficiency and productivity analyses 1. Introduction This two day training briefly reviews [upper-undergraduate level] production theory and introduces the concepts and methods of measuring
More informationIntroduction to Macroeconomics
Introduction to Macroeconomics Martin Ellison Nuffi eld College Michaelmas Term 2018 Martin Ellison (Nuffi eld) Introduction Michaelmas Term 2018 1 / 39 Macroeconomics is Dynamic Decisions are taken over
More informationIs there an Environmental Kuznets Curve?
1 Is there an Environmental Kuznets Curve? small open economy - fixed world price normalize population so that N = 1. growth treated as once-and-for-all changes in endowments or technology. Pollution Demand:
More informationThe Value of Being Socially Responsible. ADEAApproachforAnalyzingE ciencyand Recovering Shadow Prices of CSR Activities
The Value of Being Socially Responsible. ADEAApproachforAnalyzingE ciencyand Recovering Shadow Prices of CSR Activities Daniela Puggioni The Pennsylvania State University, Department of Agricultural Economics,
More informationResearch Division Federal Reserve Bank of St. Louis Working Paper Series
Research Division Federal Reserve Bank of St. Louis Working Paper Series The Evolution of Cost-Productivity and Efficiency Among U.S. Credit Unions David C. Wheelock and Paul W. Wilson Working Paper 2009-008D
More informationAdvanced Economic Growth: Lecture 8, Technology Di usion, Trade and Interdependencies: Di usion of Technology
Advanced Economic Growth: Lecture 8, Technology Di usion, Trade and Interdependencies: Di usion of Technology Daron Acemoglu MIT October 3, 2007 Daron Acemoglu (MIT) Advanced Growth Lecture 8 October 3,
More informationx(t) = t[u(t 1) u(t 2)] + 1[u(t 2) u(t 3)]
ECE30 Summer II, 2006 Exam, Blue Version July 2, 2006 Name: Solution Score: 00/00 You must show all of your work for full credit. Calculators may NOT be used.. (5 points) x(t) = tu(t ) + ( t)u(t 2) u(t
More informationA Note on the Scale Efficiency Test of Simar and Wilson
International Journal of Business Social Science Vol. No. 4 [Special Issue December 0] Abstract A Note on the Scale Efficiency Test of Simar Wilson Hédi Essid Institut Supérieur de Gestion Université de
More informationSuggested Solutions to Homework #6 Econ 511b (Part I), Spring 2004
Suggested Solutions to Homework #6 Econ 511b (Part I), Spring 2004 1. (a) Find the planner s optimal decision rule in the stochastic one-sector growth model without valued leisure by linearizing the Euler
More informationEuropean Journal of Operational Research
European Journal of Operational Research 207 (200) 22 29 Contents lists available at ScienceDirect European Journal of Operational Research journal homepage: www.elsevier.com/locate/ejor Interfaces with
More informationSULFUR DIOXIDE REMOVAL
Report No. 63 A SULFUR DIOXIDE REMOVAL FROM STACK GASES Supplement A by EARL D. OLIVER August 1973 A private report by the PROCESS ECONOMICS PROGRAM STANFORD RESEARCH INSTITUTE MENLO PARK, CALIFORNIA CONTENTS
More informationM04/521/S(1) Candidate number MATHEMATICAL METHODS STANDARD LEVEL PAPER 1. Thursday 6 May 2004 (afternoon) 1 hour INSTRUCTIONS TO CANDIDATES
c IB DIPLOMA PROGRAMME PROGRAMME DU DIPLÔME DU BI PROGRAMA DEL DIPLOMA DEL BI M04/521/S(1) MATHEMATICAL METHODS STANDARD LEVEL PAPER 1 Candidate number Thursday 6 May 2004 (afternoon) 1 hour INSTRUCTIONS
More informationSupply Chain Network Sustainability. Competition and Frequencies of Activities from Production to Distribution
Under Competition and Frequencies of Activities from Production to Distribution Anna Nagurney 1,2, Min Yu 3, and Jonas Floden 2 1 Department of Operations and Information Management Isenberg School of
More information14.05: Section Handout #1 Solow Model
14.05: Section Handout #1 Solow Model TA: Jose Tessada September 16, 2005 Today we will review the basic elements of the Solow model. Be prepared to ask any questions you may have about the derivation
More informationOklahoma Gas & Electric Sooner Units 1 & 2, Muskogee Units 4 & 5 Dry FGD BART Analysis Follow-Up Report
Oklahoma Gas & Electric Sooner Units 1 & 2, Muskogee Units 4 & 5 Dry FGD BART Analysis Follow-Up Report Prepared by: Sargent & Lundy LLC Chicago, Illinois December 28, 2009 Oklahoma Gas & Electric December
More informationThe Difference Approach to Productivity Measurement and Exact Indicators November 25, 2017
1 The Difference Approach to Productivity Measurement and Exact Indicators November 25, 2017 Erwin Diewert and Kevin J. Fox, 1 Discussion Paper 17-08, Vancouver School of Economics, University of British
More informationEarly action simulations
FINAL REPORT Early action simulations Results from G-Cubed Prepared for New Zealand Ministry for the Environment Warwick McKibbin (ANU and Brookings Institution) David Pearce (Centre for International
More informationR&D Investment, Exporting, and Productivity Dynamics
R&D Investment, Exporting, and Productivity Dynamics Bee Yan Aw, Mark J. Roberts, Daniel Yi Xu NASM 2009 Motivation Does openness to trade promote productivity? Exports and firm productivity are correlated
More informationPublic Disclosure Copy. Implementation Status & Results Report Small Town Water Supply and Urban Septage Management Project (P156738)
Public Disclosure Authorized AFRICA Benin Water Global Practice IBRD/IDA Investment Project Financing FY 2017 Seq No: 2 ARCHIVED on 04-Dec-2017 ISR30468 Implementing Agencies: The Republic of Benin, Agence
More informationLecture VIII. Income Process: Facts, Estimation, and Discretization
Lecture VIII Income Process: Facts, Estimation, and Discretization Gianluca Violante New York University Quantitative Macroeconomics G. Violante, Income Process p. 1 /26 Estimation of income process Competitive
More informationNotation. Pattern Recognition II. Michal Haindl. Outline - PR Basic Concepts. Pattern Recognition Notions
Notation S pattern space X feature vector X = [x 1,...,x l ] l = dim{x} number of features X feature space K number of classes ω i class indicator Ω = {ω 1,...,ω K } g(x) discriminant function H decision
More informationExact and superlative measurement of the Luenberger-Hicks- Moorsteen productivity indicator DISCUSSION PAPER SERIES DPS17.02
DISCUSSION PAPER SERIES DPS17.02 JANUARY 2017 Exact and superlative measurement of the Luenberger-Hicks- Moorsteen productivity indicator Frederic ANG and Pieter Jan KERSTENS Department of Economics Faculty
More informationA FLEXIBLE TIME-VARYING SPECIFICATION OF THE TECHNICAL INEFFICIENCY EFFECTS MODEL
A FLEXIBLE TIME-VARYING SPECIFICATION OF THE TECHNICAL INEFFICIENCY EFFECTS MODEL Giannis Karagiannis Dept of International and European Economic and Political Studies, University of Macedonia - Greece
More informationSUPPLEMENT TO RETURNS TO TENURE OR SENIORITY? : ADDITIONAL TABLES AND ESTIMATIONS (Econometrica, Vol. 82, No. 2, March 2014, )
Econometrica Supplementary Material SUPPLEMENT TO RETURNS TO TENURE OR SENIORITY? : ADDITIONAL TABLES AND ESTIMATIONS (Econometrica, Vol. 82, No. 2, March 2014, 705 730) BY I. SEBASTIAN BUHAI, MIGUEL A.
More informationMalmquist and Törnqvist Productivity Indexes: Returns to scale and technical progress with imperfect competition. W. Erwin Diewert. Kevin J.
Malmquist and Törnqvist Productivity Indexes: Returns to scale and technical progress with imperfect competition by W. Erwin Diewert University of British Columbia and Kevin J. Fox University of New South
More informationThis document is downloaded from DR-NTU, Nanyang Technological University Library, Singapore.
This document is downloaded from DR-NTU, Nanyang Technological University Library, Singapore. Title Evaluating eco-efficiency with data envelopment analysis : an analytical reexamination Author(s) Chen,
More informationA t = B A F (φ A t K t, N A t X t ) S t = B S F (φ S t K t, N S t X t ) M t + δk + K = B M F (φ M t K t, N M t X t )
Notes on Kongsamut et al. (2001) The goal of this model is to be consistent with the Kaldor facts (constancy of growth rates, capital shares, capital-output ratios) and the Kuznets facts (employment in
More informationEmbodied technological change, learning-by-doing and the productivity slowdown
Embodied technological change, learning-by-doing and the productivity slowdown Raouf Boucekkine Fernando del Río Omar Licandro May, 2002 Abstract The productivity slowdown faced by the US economy since
More informationProblem 1 (30 points)
Problem (30 points) Prof. Robert King Consider an economy in which there is one period and there are many, identical households. Each household derives utility from consumption (c), leisure (l) and a public
More informationEquilibrium in a Production Economy
Equilibrium in a Production Economy Prof. Eric Sims University of Notre Dame Fall 2012 Sims (ND) Equilibrium in a Production Economy Fall 2012 1 / 23 Production Economy Last time: studied equilibrium in
More informationCHLORINE PROCESS ECONOMICS PROGRAM. Report No. 61A. Supplement A. by YEN CHEN YEN. May A private report by the STANFORD RESEARCH INSTITUTE
Report No. 61A CHLORINE Supplement A by YEN CHEN YEN May 1074 A private report by the PROCESS ECONOMICS PROGRAM STANFORD RESEARCH INSTITUTE I I MENLO PARK, CALIFORNIA CONTENTS 1 2 3 INTRODUCTION... 1 SUMMARY...
More informationCorporate Profits Tax and Innovative Investments
Corporate Profits Tax and Innovative Investments Andrew Atkeson Ariel Burstein Manolis Chatzikonstantinou UCLA, Fed MPLS UCLA UCLA May 2018 Introduction Impact of changes in corporate profits taxes on
More informationHere is a link to the formula booklet:
IB MATH SL2 SUMMER ASSIGNMENT review of topics from year 1. We will be quizzing on this when you return to school. This review is optional but you will earn bonus points if you complete it. Questions?
More informationSubsidies for Renewable Energies in the Presence of Learning Effects and Market Power
Subsidies for Renewable Energies in the Presence of Learning Effects and Market Power Department of Economics,, Germany Centre for Energy and Environmental Markets, UNSW Public Seminar 28.04.2010 Motivation
More informationStatistics for scientists and engineers
Statistics for scientists and engineers February 0, 006 Contents Introduction. Motivation - why study statistics?................................... Examples..................................................3
More informationOn Modeling Pollution-Generating Technologies
November 2002 On Modeling Pollution-Generating Technologies Sushama Murty* and R. Robert Russell** University of California, Riverside Abstract This paper takes issues with standard, single-equation modeling
More informationA User s Guide to the Federal Statistical Research Data Centers
A User s Guide to the Federal Statistical Research Data Centers Mark Roberts Professor of Economics and Director PSU FSRDC September 2016 M. Roberts () RDC User s Guide September 2016 1 / 14 Outline Introduction
More information