Linear Input Aggregation Bias in Nonparametric Technical Efficiency Measurement

An attraction of the nonparametric approach to measuring technical efficiency is that no a priori structure is placed on the production process of the firm. However, inputs are typically linearly aggregated, either explicitly or implicitly. It is shown that this introduces bias in the technical efficiency measurement. The computed technical efficiency measure becomes an economic efficiency measure comprised of both technical and allocative efficiency. An empirical application demonstrates the bias.     

Do Local Property Taxes Affect New Building Development? Results from a Quasi-Natural Experiment in New Zealand

The Journal of Real Estate Finance and Economics - We utilise a quasi-natural experiment in local property tax reform arising from a compulsory amalgamation of several local councils in 2010 in...     

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BIDDING TO GIVE: AN EXPERIMENTAL COMPARISON OF AUCTIONS FOR CHARITY*

We experimentally compare three mechanisms used to raise money for charities: first‐price winner‐pay auctions, first‐price all‐pay auctions, and lotteries. We stay close to the characteristics of most charity auctions by using an environment with incomplete information and independent private values. Our results support theoretical predictions by showing that the all‐pay format raises substantially higher revenue than the other mechanisms.     

Potential output growth in several industrialised countries a comparison

In this paper, we present international comparisons of potential output growth among several economies—Canada, the euro area, France, Germany, Italy, Japan, the Netherlands, the United Kingdom, and the United States—for the period 1991–2004, for which we construct consistent and homogenous capital stock series. The main estimates rely on a structural approach where output of the whole economy is described by a Cobb–Douglas function and Total Factor Productivity (TFP) is estimated allowing for possible breaks in the deterministic trend. The results confirm that over the considered period the potential gross domestic product growth has been faster in the United States than in other studied countries, reflecting a combination of higher labour contribution and faster TFP growth. Overall, this paper might help to shed some light on cross-country differences in economic performance over the recent period.     

The role of the United States in the global economy and its evolution over time

This article aims at assessing the role of the United States in the global economy and its evolution over time. Based on a Global VAR modeling approach, this article shows first that countries with a large trade exposure with the U.S. economy have a relatively larger sensitivity to U.S. developments. However, even for countries that do not trade so much with the U.S., they are largely influenced by its dominance through other partners’ trade. Moreover, while no clear trend seems to emerge, it seems that the role of the U.S. in the global economy has changed over time. Overall, for most countries—the latest recession excluded—a change in U.S. GDP had weaker impacts—though more persistent—for most recent periods. The latest recession, however, led to some renewed increase in the sensitivity of the economies to U.S. developments.     

Measurement,incentives and constraintsin Stigler's economics of science *

Abstract

George J. Stigler's seminal role as one of the founders of the economics of science is summarized and evaluated. His main contribution rests in his asking an array of important questions and arguing persuasively for the application of empirical, and especially statistical, techniques to the answering of those questions. He asks whether and how science progresses; whether a scientist's biography is important in understanding his science; what characteristics of a scientist are most complementary to success in science; and how the professionalization of science redirects the attention of scientists more toward internal puzzle-solving, and less toward applied relevance.