Evaluating Productivity Growth Measures in the EU

In this paper we evaluate the productivity growth of the member countries in the European Union (EU) before and after the enforcement of the Maastricht convergence criteria in 1992. Total factor productivity was measured by employing the growth-accounting approach and Tornqvist indices. The evaluation of productivity growth was performed by employing the non-parametric method of Data Envelopment Analysis (DEA) in particular years and within three time periods. DEA was also used to evaluate the relative efficiency of EU members with respect to the convergence criteria with important implications for their economic integration. TFP growth was found to have contributed the most in the EU, while its share in the latest recessions was the smallest as compared to labor and capital share.     

Sequential Malmquist Indices of Productivity Growth: An Application to OECD Industrial Activities

The paper applies both the standard DEA methodology with contemporaneous frontiers and DEA with sequential frontiers to study changes in productivity and efficiency in manufacturing for a sample of eleven OECD countries over a twenty-year period. It uses a decomposition of the industrial Malmquist productivity indices to locate the sources of productivity growth: 'technical progress' and 'catching up.' The alternative indices are interrelated in a unifying framework that provides an interpretation to their difference. We argue that for manufacturing industries, in which technological regress is unlikely to occur, DEA with sequential frontiers provides a more adequate measure for the contribution of technical changes than standard DEA.     

Exploring the effectiveness of research and innovation policies among European Union countries

In this paper we explore the effectiveness of selected research and innovation policies among EU countries. Using data from the AEGIS database and information from the 2015 Bruegel’s Partnership report on research and innovation polices in EU countries, we compare and contrast the response of knowledge intensive firms to a sample of policies. We find that the impact of the policies in our sample varies not only across countries but also across the age of affected firms in those countries. We conclude our analysis with a call for policy makers to begin to investigate the incidence of the impact of their research and innovation policies as measured not only by the age of firms but also by other dimensions.     

Greece in the European Union: policy lessons from two decades of membership

This paper examines the first two decades of Greece’s experience as a member of the European Union (EU). In evaluating the Greek experience within the EU, we derive three fundamental policy lessons that apply both to similar small peripheral countries now entering the EU and to the EU itself in terms of facilitating their integration in a large economic area. First, small peripheral countries that enter the EU must address the structural deficiencies of their economies before entry in order to minimize the impact of increased competition after the removal of trade protection, and follow domestic policies that maintain and promote their comparative advantage within the EU. Second, the Convergence Criteria have proven to be a successful mechanism for countries with a poor historical policy record to achieve macroeconomic stability, as shown by the case of Greece. Third, common EU policies can be very helpful in facilitating structural reforms in small peripheral economies. However, these policies must be continuously evaluated and improved so that their effectiveness is maximized.     

Advances in physician profiling: the use of DEA

Insurers, health plans, and individual physicians in the United States are facing increasing pressures to reduce costs while maintaining quality. In this study, motivated by our work with a large managed care organization, we use readily available data from its claims database with data envelopment analysis (DEA) to examine physician practices within this organization. Currently the organization evaluates primary care physicians using a profile of 16 disparate ratios involving cost, utilization, and quality. We employed these same factors along with indicators of severity to develop a single, comprehensive measure of physician efficiency through DEA. DEA enabled us to identify a reference set of “best practice” physicians tailored to each inefficient physician. This paper presents a discussion of the selection of model inputs and outputs, the development of the DEA model using a “stepwise” approach, and a sensitivity analysis using superefficiency scores. The stepwise and superefficiency analyses required little extra computation and yielded useful insights into the reasons as to why certain physicians were found to be efficient. This paper demonstrates that DEA has advantages for physician profiling and usefully augments the current ratio-based reports.     

The financial and green effects of cultural values on mission drifts in European social enterprises

The sustainable social enterprises (SEs) literature shows that SEs have to simultaneously pursue economic, social, and environmental aims. However, tensions between these objectives can make this a challenging task and lead towards mission drift. This work investigates if the cultural dimension can forecast the mission drift. We empirically analyze this relationship in three stages. In the first stage, we identify a homogeneous dataset of 287 sustainable SEs from seven EU countries from 2011 to 2020. Then, in the second stage, we apply the data envelopment analysis (DEA) methodology to calculate the efficiency of the SEs. An efficient SE has to simultaneously achieve social, environmental, and economic aims. We calculate a proxy of the mission drift and generate a dichotomous category variable that assigns value 1 to the SE not affected by mission drift, 0 otherwise. In the last stage, we implement the 2SLS logistic regression between the variable that identifies the SEs affected by mission drift and three cultural dimensions: avoidance of uncertainty, masculinity, and short-term orientation.     

Social sustainability of regional transportation: An assessment framework with application to EU road transport

The assessment of transportation social sustainability appeals to many scholars as an essential issue but imposes a risk of selecting inadequate factors and methods to measure social phenomena. In this study, based on an extensive review, we identify the measurable key social indicators (instead of the economic or environmental factors commonly used) and propose a comprehensive evaluation framework for relative performance analysis of social sustainability in the regional context. This work is the first attempt to assess regional social sustainability of transport explicitly utilizing a multi-output performance measure. We use Shannon entropy to combine the results of selected data envelopment analysis (DEA) models into a unified social sustainability performance score. The method is applied to regional road transport in the European Union (EU) member states for the period 2004–2017. The empirical section explores individual profiles of EU countries, compares the states grouped into two clusters of old (EU-15) and new (EU-13) EU members, and examines their social sustainability performance over time. The analysis suggests that considering only social factors in the measurement eliminates the bias resulting from the inclusion of economic factors. As a result, our method prevents inaccurate inflation of the scores of more economically advanced countries. The findings also draw attention to the car dependence problem associated with high motorization rates in affluent EU-15 states. The study confirms the capacity of the proposed DEA-based framework to serve as an adequate tool for measuring the social sustainability of transport, which can support policymakers by providing useful benchmarks employing social factors.     

Benchmarking institutional variety in the eurozone: An empirical investigation

The European debt crisis has shown that the future of the European Union (EU) depends on the willingness of each member country to implement responsible policies, avoid moral hazard and uncooperative attitudes, and ensure stability and soundness. However, the European institutional variety means that each member country reacts differently to shocks and policies, follows a different path of recovery, and adapts to common institutions, including the common currency, in different ways. Helping countries to converge toward a situation that guarantees well-being, stability, and development at the national and community level is the goal of the European benchmark. This benchmark is a framework inspired by European treaties that, through the distance-to-frontier score methodology, aims to measure member countries’ performance and identify inefficiencies and negative externalities within the economic, social, and political institutions of each member country. The paper presents an empirical investigation of the European benchmark. Based on the results obtained, all countries can improve their performance, and none of them can be considered a model for the others. However, the Mediterranean and post-communist countries have more challenges to face and therefore need to make greater efforts.     

Living flexibly? How Europe's science researchers manage mobility,fixed-term employment and life outside work

This paper draws from interviews with mobile science researchers to explore experiences of mobility and fixed-term employment in the EU. The paper takes a socio-legal approach, aiming to understand the contribution of EU law and policy to the resource framework within which career decisions are made. The high incidence of fixed-term employment and the expectation of geographic mobility in science labour markets has made science researchers very ‘flexible’ employees and, arguably, model EU citizens. But how are these factors managed in the context of every-day life? Developing sound empirical evidence of how individuals experience mobility and fixed-term employment could lead to more sensitive and effective policy making. This is particularly pertinent as human resource issues in science research have become central to achieving the EU's overarching strategies for growth and jobs (the Lisbon Strategy and Europe 2020). A range of policies designed to increase the mobility of researchers and to manage the use of fixed-term contracts have been put in place. This paper draws on empirical evidence to inform our understandings of these developing areas of law and policy in the EU.     

Policies to benefit from the globalization of corporate R&D: An exploratory study for EU countries

This article explores how the globalization of corporate R&D has led to the emergence of new policy strategies across the EU, involving a more proactive role of governments and a closer connection between innovation policies and FDI promotion policies. The first part presents an analytical framework encompassing the main policy objectives and instruments at stake, which aims at facilitating the design and evaluation of policies geared towards the globalization of corporate R&D. Both the policies to attract inward FDI in R&D and those towards R&D offshoring are addressed, as well as the distinct policy implications of alternative entry modes. The second part provides evidence of the evolution of European policies in response to the globalization of corporate R&D, pointing out a set of country-specific examples and suggesting avenues for policy intervention at the EU level. Although the focus is on the EU, this study may inform policy learning in other developed and developing countries alike.     

A composite indicator of social inclusion for EU based on the inverted BoD model

In this paper, after reviewing the existing modeling approaches for reverse indicators, we opt for the use of the inverted Benefit-of-the-doubt (IBoD) model when all the considered indicators are reverse, as is the case with composite indicators related to social inclusion. Using EU data for 2014 we provide comparative empirical results using the IBoD model and three data transformations employed by previous studies. We also provide a thorough analysis of the performance of EU countries during the period 2011–2020 in terms of the composite indicator obtained from the IBoD model. Our empirical results indicate that relative performance across the EU has neither improved nor deteriorated and there is evidence supporting local instead of global convergence in social inclusion with certain groups of countries.     

Polarization of the worldwide distribution of productivity

We employ data envelopment analysis (DEA) methods to construct the world production frontier, which is in turn used to decompose (labor) productivity growth into components attributable to technological change (shift of the production frontier), efficiency change (movements toward or away from the frontier), physical capital deepening, and human capital accumulation over the 1965–2007 period. Using this decomposition, we provide new findings on the causes of polarization (the emergence of bimodality) and divergence (increased variance) of the world productivity distribution. First, unlike earlier studies, we find that efficiency change is the unique driver of the emergence of a second (higher) mode. Second, while earlier studies attributed the overall change in the distribution exclusively to physical capital accumulation, we find that technological change and human capital accumulation are also significant factors explaining this change in the distribution (most notably the emergence of a long right-hand tail). Robustness exercises indicate that these revisions of earlier findings are attributable to the addition of (more recent) years and a much greater number of countries included in our sample. We also check to see whether our results are changed by a correction for the downward bias in the DEA construction of the frontier, concluding that these corrections affect none of our major findings (essentially because the level correction roughly washes out in changes.)     

Part-time work in the public health service of Denmark,France and the UK

The aim of this paper is to consider the extent to which and the ways in which part-time work is used in the health services of Denmark, France and the UK. The reasons for and the implications of introducing part-time work in the three EU countries are also analysed and compared. Data were collected using questionnaires and interviews from hospitals in Denmark, France and the UK. Questionnaires were completed by heads of department and by part-time employees. Interviews (for the UK sample only) were held with the managers responsible for the introduction of flexible working practices. The findings show that part-time employment is the most common flexible working practice in the health services of all three countries but that the purpose of its introduction differs from one country to another. Part-time work seemed to have satisfied the desire of those who run the National Health Service (NHS) in the UK for cost reduction and for flexibility of working practices. In the French health service it was aimed at creating jobs, whereas in Denmark it was a response to increasing employee demand for flexible working. It was also found that, contrary to the Danish case with its established tradition of flexible working and equality in employment, the full-time working traditions and the male-dominated cultures of the health services in France and in the UK have often undermined the importance and benefits of part-time employment.     

The convergence of monetary policy between candidate countries and the European Union

We compare the convergence with German monetary policy of the transition-economy candidates for EU membership, of non-transition candidates, and of countries that have recently joined the EU. Significant linkages exist between German base money stock and that of recent members of the EU; the same holds true for non-transition-economy candidates. Among the transition economies, the ability to follow the policies of the Bundesbank is weaker or non-existent. Such weak policy coordination suggests the need for strengthening the financial sectors of these countries and for a period in which they tie their policies more closely to the ECB.     

Evaluation and comparison of European countries: public opinion on services

We propose the setting-up of an indicator for classifying European countries with relation to consumers’ satisfaction for services of general interest. Services considered are fixed telephone service, electricity supply, railways and postal service. The reference data set is the 2002 Standard Eurobarometer database (EB58) and it refers to EU members before 2004 enlargement. The proposed indicator is based on nonlinear principal component analysis and supplies a measure for the citizen’s satisfaction. Its robustness is verified by a Monte Carlo approach to examine the stability of nonlinear PCA results and to compute Bootstrap C.I.s of average country scores. The level of satisfaction is eventually used for country comparison and for detecting possible hotspots, which might be useful when addressing decision making policies.     

Disentangling the efficiency drivers in country-level global health programs: An empirical study

Motivated by the cost reductions and outcome improvements generated by benchmarking in many industries, we focus on in-country global health programs to identify and quantify opportunities for process improvement. We empirically study the major efficiency drivers of reproductive health (RH) country programs in Sub-Saharan Africa sponsored by international funding organizations. To ensure a level playing field for comparison across countries, we quantify the impact of cross-country heterogeneity and random shocks on the efficiency of RH programs. To analyze these relationships and isolate the effects attributable to managerial inefficiency, we use a three-stage Data Envelopment Analysis (DEA)/Stochastic Frontier Analysis (SFA) model. We show the impact of environmental factors on program efficiency, linking policy making decisions with operational and health outcome performance. We also show that donor fragmentation negatively impacts managerial efficiency, and we suggest actions to mitigate this effect. We then provide a way to improve performance through benchmarking efforts within groups of countries and present an initial prototype of such efforts.     

Adjusted indicators of quality and equity for monitoring the education systems over time. Insights on EU15 countries from PISA surveys

In this work, we investigate how European countries belonging to EU15 are performing in terms of the quality and equity of their educational systems. To do so, we jointly analysed student competencies in mathematics and reading using data collected in four different waves (2006, 2009, 2012, 2015) by the Program for International Student Assessment (PISA) run by the Organisation for Economic Cooperation and Development (OECD). The aim of this analysis is twofold: (i) to assess the associations between students' competencies inmathematics and reading and their socioeconomic status and to investigate how this relationship varies across countries over time; (ii) to present a batch of adjusted indicators relevant to the investigation of educational performance over time in terms of quality (average student competencies) and equity (low association between student achievement and their socioeconomic backgrounds). We fitted a mixed-effect (multilevel) regression model with a bivariate latent structure and random intercepts and slopes to assess the effect of socioeconomic and cultural background on student competencies across countries over time and to assess the performance trajectories of EU15 countries with respect to European Commission benchmarks. We present and discuss our main findings and their implications in terms of the policies of EU15 countries.