Efficiency and Technical Change in Intertemporal Intersectoral DEA

A new procedure for the measurement of efficiency and technical change is presented, using DEA with three-dimension data (box data), pooling over sectors, regions and time. Until now, when pooling the data in panel applications it has been assumed that technology remained unchanged, so productivity change was entirely attributed to technical efficiency change. However, patterns of technology change and the decomposition into efficiency and technical change elements can be accomplished by means of restrictions on the general structure of the technology indexes. Under the assumption of non-regressive technical change, upper and lower bounds for efficiency and technical change are obtained. The new methodology is illustrated in an analysis of productivity growth in 13 manufacturing sectors in the Spanish regions from 1980 to 1992.     

How Do Differing Standards Increase Trade Costs? The Case of Pallets

The pallet is a platform used for storing, handling and transporting products. There are hundreds of different pallet sizes around the world. The case of pallets is examined to illustrate the impact of multiplicity of standards on trade costs. We select this case because pallets are used all over the world, pallet standards are not too sophisticated, and data on pallet standards and costs are to some extent available. The paper examines why there are so many different pallet standards, the associated trade costs and the reasons why countries have not harmonised pallet sizes to eliminate such costs. It then presents options for exporters to mitigate the adverse effects of standards multiplicity while complying with destination markets’ standard requirements. The range of options is limited for exporters from less developed countries because of the lack of rental and exchange pallet markets. To mitigate the costs of this multiplicity of standards, the international community's strategy should focus on developing awareness of the cost of multiplicity of standards and actively supporting standardisation.