Firm efficiency, industry performance and the economy: three-way decomposition with an application to Andalusia

Amores, Antonio F.; Raa, Thijs ten

doi:10.1007/s11123-014-0384-0

Cited by 7 publications

(4 citation statements)

References 10 publications

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“…More specifically, levels of efficiency are lower in Group 1, owing to higher relative labour prices in comparison with the two other groups, in both absolute and relative terms. Capital prices, however, exert a beneficial impact on the levels of efficiency of Group 2 companies, together with lower labour prices, which supports the perspective that insurance is one of the industries where capital presents the highest marginal productivity (Amores & Raa, 2014). Regulatory policies and incentives could be designed to ensure access to cheap sources of capital for small-sized insurance companies in Angola (Group 3), which would foster competition is this country.…”

Section: Discussionmentioning

confidence: 81%

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Cost efficiency of African insurance companies using a finite mixture model

Barros

2016

SAJEMS

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This paper evaluates the operational practices by African insurance companies from Angola and Mozambique, using a finite mixture model that allows controlling for unobserved heterogeneity. More precisely, a stochastic frontier latent class model is adopted in this research to estimate the cost frontiers for each of the different technologies embedded in this heterogeneity. This model not only enables the identification of different groups of African insurance companies from Angola and Mozambique, but it also permits the analysis of their cost efficiency. The results indicate the existence of three different technology groups in the sample, suggesting the need for different business strategies. The policy implications are also derived.

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Section: Discussionmentioning

confidence: 81%

“…Insurance is one of the industries in which capital presents the highest marginal productivity. Under these circumstances, cost frontiers become quite sensitive to outliers (Amores & Raa, 2014). Hence, SFA is adopted here, rather than DEA, as the latter is more affected by influential observations than is the former.…”

Section: Introductionmentioning

confidence: 99%

Cost efficiency of African insurance companies using a finite mixture model

Barros

2016

SAJEMS

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“…W. Briec et al (2003) discussed allocation of structural inefficiency across the DMUs by the virtue of shadow price inefficiency (the notion of structural inefficiency in that paper is somewhat different from the one used by, e. g., G. Karagiannis, 2015). A. F. Amores and Ten Raa (2014) analysed Andalusian economy taking into account structural efficiency at different levels of aggregation. J. P. Boussemart et al (2015) analysed structural performance of Chinese economy.…”

Section: Introductionmentioning

confidence: 99%

Structural efficiency in Lithuanian family farms

Baležentis¹

2015

Management Theory and Studies for Rural Business and Infrastructure Development

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Along with firm-specific technical inefficiency, sector-specific structural inefficiency might induce losses in productivity. This paper therefore aims to identify the trends in structural efficiency in Lithuanian family farms. Specifically, the four farming types are considered, namely cereal farming, field cropping, dairying, and mixed farming. Farm-level data from Farm Accountancy Data Network are used for the analysis. The research period spans over the years 2004–2011. The trends in technical and scale efficiency are presented. Furthermore, the prevailing returns to scale are discussed thus offering insights into the most productive scale size and deviations from it in Lithuanian family farms. Finally, the dynamics in structural efficiency are discussed. The results indicate that the aggregate output of certain farming types could be augmented by some 20–25% due to reallocation of inputs among farms. Anyway, technical inefficiency remains the major driver of structural inefficiency.

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“…Amores and ten Raa (2014) distinguish three levels of production efficiency of the Andalusian economy: a firm level, an industry level, and the economy level. Firm level efficiency measures the potential productivity gains (i.e., output/input ratios) that arise if the firm could choose to use production techniques of other firms from the same industry.…”

mentioning

confidence: 99%

Performance: The Output/Input Ratio

Raa

2021

Efficiency and Input-Output Analyses

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Firm efficiency, industry performance and the economy: three-way decomposition with an application to Andalusia

Cited by 7 publications

References 10 publications

Cost efficiency of African insurance companies using a finite mixture model

Cost efficiency of African insurance companies using a finite mixture model

Structural efficiency in Lithuanian family farms

Performance: The Output/Input Ratio

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