Antonio Peyrache's research while affiliated with The University of Queensland and other places
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Publications (24)
This paper addresses the efficiency measurement of firms composed by multiple components, and assessed at different decision levels. In particular it develops models for three levels of decision/production: the subunit (production division/process), the DMU (firm) and the industry (system). For each level, inefficiency is measured using a direction...
The last decade has witnessed an exponential proliferation of studies on Network Data Envelopment Analysis (NDEA) as a tool to measure efficiency and productivity for production systems. Those systems are composed of various layers of decision making (hierarchically organized) and potentially interconnected production processes. The decision makers...
The selection of inputs and outputs in Data Envelopment Analysis (DEA) is regarded as an important step that is normally conducted before the DEA model is implemented. In this paper, we introduce cardinality constraints directly into the DEA program in order to select the relevant inputs and outputs automatically, without any previous statistical a...
The paper derives measures of sectoral productivity from a model specification that allows for cross-sectional specific trends and time varying slopes in panel models with fixed N. The specification nests a number of commonly used panel data models introduced in the literature which deal with group specific trends. The econometric model is represen...
This paper seeks to explain why some countries have managed to catch up in terms of labor productivity over the period 1993–2007 in 76 countries. By integrating the technology gap research within the standard growth-accounting approach, we introduce a methodology which allows us to split total factor productivity (TFP) change into two components: c...
Zhu M. and Peyrache A. The quality and efficiency of public service delivery in the UK and China, Regional Studies. This paper examines the efficiency of public service delivery at a regional level in both the UK and China using a method based on data envelopment analysis (DEA) that measures aggregate country-level inefficiency. This country-level...
An important problem in the public sector, given the lack of output prices and exit decisions to sanction inefficient units, is finding the optimal industry structure. We apply a novel approach to Italian courts of justice, a typical example of a small sector in the public domain but with important effects on economic agents' behavior, firm size, F...
In this paper a definition of industry inefficiency in cost constrained production environments is introduced. This definition uses the indirect directional distance function and quantifies the inefficiency of the industry in terms of the overall output loss, given the industry cost budget. The industry inefficiency indicator is then decomposed int...
This paper explores the relative contribution of different components to labour productivity growth - for example, the role of capital investment versus increase in technical change - in 31 Chinese provinces over the period 2000-2010. It then investigates the connection between technical change and inflows of foreign direct investment (FDI). The re...
A primal index of productivity change is introduced which decomposes exactly into three components: technical change, technical efficiency change and average scale economies (radial scale change). The productivity index is defined using variations of the distance function along pre-assigned input–output rays and, for this reason, it is deemed a rad...
In this paper an encompassing empirical strategy is presented which is able to decompose an indicator of industrial structural inefficiency into its sources components. The main purpose of the analysis is to bring a number of ideas floating in the efficiency literature together in the same empirical industrial organization model and extend them to...
Building on the Kumar and Russell (2002) methodology, we propose a conditional frontier approach which allows singling out the role of technology gap in explaining labour productivity differences. We find convergence in labour productivity growth driven by capital accumulation and technical change in 211 European regions in 18 countries over the pe...
In this paper it is shown that a well known procedure (GEKS) of transitivizing a bilateral system of productivity comparisons is implicitly a way of imposing a homothetic structure onto the data. The main implication of this result is that deviations between the bilateral and the multilateral (GEKS) indexes can be interpreted as a measure of local...
The endogenous approach to regional development policy has become central over the last decade. By employing the conditional frontier approach, this paper investigates the relative contribution to labour productivity growth of: (1) capital accumulation, (2) exogenous technical change and efficiency, and (3) endogenous technological capabilities –...
Directional Distance Functions (DDFs) are becoming a popular way of measuring efficiency as they encompass the Shephard output and input distance functions as special cases. However, the most critical and still unsolved issue related to DDF remains the selection of the direction along which to measure the distance from the efficient frontier. In th...
In this paper we introduce a state-space approach to the econometric modelling of cross-sectional specific trends (temporal variation in individual heterogeneity) and time varying slopes in the context of panel data regressions. We show that our state-space panel stochastic frontier model nests some of the popular models proposed in the literature...
Closing the technology gap to reduce labour productivity disparities across Europe is crucial for the European cohesion policy. Employing a non-parametric frontier approach, this paper explores the sources of labour productivity growth in twenty-nine European countries over the period 1993-2007 in the light of the enlargement process. We find a pro...
Summary This study explores the patterns of technological capabilities for a sample of 42 countries over the period 1995-2007, introducing a novel methodological approach. We exploit duality between Data Envelopment Analysis and composite indicators to address the inconsistency between the two methodologies. The empirical findings point to the end...
This paper employs a nonparametric approach to investigate the sources of growth in labor productivity for 77 countries and to decompose it in the following three components: (1) total factor productivity; (2) capital deepening; and (3) technological capabilities accumulation (a proxy of the technology gap). We find that the technology gap accounts...
A primal index of productivity change is introduced which decomposes exactly in three components: technical change, technical efficiency change and average scale economies (radial scale change). The proposed index is invariant to movement along indifference surfaces and it collapses to the Malmquist index if the technology is locally constant retur...
This study explores the pattern of technological capabilities for a sample of 42 countries over the period 1995-2007, introducing a novel methodological approach. We exploit duality between Data Envelopment Analysis and composite indicators to address the inconsistency between the two methodologies. The empirical findings point to the end of the he...
This paper investigates empirically the importance of technological catch-up in explaining productivity growth in a sample of countries since the 1960s. New proxies for a country's absorptive capability--based on data for students studying abroad, telecommunications and publications--are tested in regression models. The results indicate that absorp...
The validity of many efficiency measurement methods rely upon the assumption that variables such as input quantities and output mixes are independent of (or uncorrelated with) technical efficiency, however few studies have attempted to test these assumptions. In a recent paper, Wilson (2003) investigates a number of independence tests and finds tha...
Citations
... One of the first proposals used the Efficiency Contribution Measure (ECM) of each variable (Pastor et al., 2002), via a hypothesis test determining whether an input is relevant or not. Other approaches used regression-based analysis, such as Ruggiero (2005), bootstrapping methodology (Simar and Wilson, 2000a), or enriched the DEA optimization programs using binary variables to model which inputs are selected (Peyrache et al., 2020;Benítez-Peña et al., 2020), as well as statistical methods (Araújo et al., 2014). Another family of approaches performs aggregations of the available variables, creating new variables which inform of the characteristics of the data, but losing interpretability. ...
... Section 4 provides the data description and results of an analysis of 2 Our paper is a substantially revised and extended version of Chapter 2 in Levent Kutlu's dissertation, Market Power and E¢ ciency (2010a). Recently, independent from us, Peyrache and Rambaldi (2013) proposed a similar Kalman …lter model for estimating e¢ ciencies. ...
... In other words, the literature points out the existence of patterns of broad productivity heterogeneity within single industries and relatively less heterogeneity between different sectors. The differences among firms include firm size, (2011), Bartelsman et al. (2013); Navaretti and Damijan et al. (2013); Ridao-Cano and Bodewig (2018) Market structure differences have ambiguous effects on productivity gap reductions Scherer (1967); Cheung and Garcia Pascual (2001); Aghion et al. (2005) Structural differences between the EU 'core' and 'periphery' are significant explanatory factors of productivity gaps Delgado-Rodríguez and Álvarez-Ayuso (2008) Gräbner et al. (2019b) The technology gap in terms of embodied and disembodied R&D is significant determinant of productivity gap Griliches (1979);Fagerberg (1987;1994); Mowery and Oxley (1995); Eaton and Kortum (1999); Griffith et al. (2003;2004); Fagerberg and Verspagen (2014); Dosi et al. (2015); Filippetti and Peyrache (2017); Gräbner and Hafele (2020) (Mis)matches between endogenous (disembodied) and purchased (embodied) technology impact negatively (positively) on the productivity gap Radosevic (1999); Jung and Lee (2010); Chung and Lee (2015); Filippetti and Peyrache (2015) The Two Disjointed Faces of R&D and the Productivity Gap in Europe age, location, managerial abilities and innovation capability. The differences between different sectors include technological sophistication, access to value chains and so on. ...
... Public services are closely related to improving the welfare of the community, one of which is through the improvement and distribution of public services. This condition shows that the development of public facilities must be accompanied by an increase in the quality and effectiveness of the service itself, so that it can maximally encourage an increase in the welfare of the people in the area (Cagigas et al. 2021;Lee et al. 2020;Lim & Lee 2021;Sari et al. 2020;Zhu & Peyrache 2017). Public service is an effort made by an agency or bureaucrat to assist the community in achieving certain goals under the community's needs. ...
... On the one hand, a widespread distribution of smaller commercial courts (and consequently a smaller distance between a court and a firm in a default situation) on one district may improve the quality of the relationships among the economic agents on the market (Castro and Guccio, 2016). From this perspective, a lower court concentration can be desirable (Peyrache, Zago, 2016). On the other hand, the aggregation of smaller commercial courts allows us to take advantage of scale economies and judge specialisation (Teixera et al. 2019, Mattson, Tidana, 2019. ...
... The author concludes that the two concepts of efficiency will coincide only if size is uncorrelated with efficiency and if there are no reallocation inefficiencies. The efficiency of the average DMU has been explored by several authors under the denomination of centralised allocation models or industry models (e.g., Peyrache 2013;Peyrache 2015). Note that Färe et al. (1992) is indeed one of the first papers mentioning industry performance and relate that with firm performance. ...
... Finally, some studies negate the relationship between foreign investment and GTFP (Hwang and Wang 2012;Filippetti and Peyrache 2015), believing that the correlation between the two is not significant (Asheghian 2009;Li et al. 2019). ...
... Apparently, after realizing such a problem, Irving Fisher himself, who was an advocate of circularity for indexes in his famous Fisher (1911) book (in the context of price indexes), corrected himself about a decade later, acknowledging the serious problems of this property, stating: "... for the only definite error which I have found among my former conclusions has to do with the socalled "circular test" which I originally, with other 24 Also see Färe et al. (1994b), Grifell-Tatjé and Lovell (1995, Färe et al. (1997), Ray and Desli (1997), Simar and Wilson (1998a), Wheelock and Wilson (1999), Arcelus and Arozena (1999), Balk (2001), Orea (2002), Lovell (2003), Zofio (2007), Fried et al. (2008), Diewert and Fox (2017) and a review in Badunenko et al. (2017) and more references therein. 25 E.g., see Diewert (1992a, b), Chambers and Färe (1994), Färe and Grosskopf (1996a), Balk et al. (2003), Peyrache (2013) and most recently in and references therein. A textbook discussion of this topic can also be found in Chapter 4 and 7 in Sickles and Zelenyuk (2019). ...
... The behaviour of labour productivity has been widely studied both across European regions (Cuadrado-Roura et al. 2000;Ezcurra et al. 2007) and within individual countries, e.g., across Italian (Giacinto and Nuzzo 2006), British (Gardiner et al. 2020) and Greek (Christopoulos and Tsionas 2004) regions. Filippetti and Peyrache (2015) assessed the role of the technology gap, capital deepening, exogenous technical change, and efficiency change in explaining labour productivity differences in European regions. Basile et al. (2008) analysed the relationship between regional unemployment, wages, and labour productivity differentials in Europe. ...
... In all these cases, technology must satisfy various types of Hicks-neutrality and of homotheticity-very restrictive assumptions. Chambers and Färe (1994) appear to be among the first to thoroughly discuss technologies of the type that obey such conditions (also see Chambers (1988, p. 207) for a related discussion), which were later revisited by , Balk (1998), Balk et al. (2003), Peyrache (2013), Sickles and Zelenyuk (2019, p. 130-137) and with some further developments by Färe et al. (2020). The bottomline of all these works is that the problem is very complex and the solutions that were discovered so far require very strict assumptions on the technology, such as homotheticity and neutrality of technology change (which is very unrealistic) as well as constant returns to scale or its generalizations. ...