Robust nonparametric analysis of dynamic profits, prices and productivity: An application to French meat-processing firms

Frederic Ang and Pieter Kerstens

European Review of Agricultural Economics, 2023, vol. 50, issue 2, 771-809

Abstract: Appropriately considering adjustment costs, this paper develops a robust nonparametric framework to analyse profits, prices and productivity in a dynamic context. Dynamic profit change is decomposed into a dynamic Bennet price indicator and a dynamic Bennet quantity indicator. The latter is decomposed into explanatory factors. It is shown to be a superlative indicator for the dynamic Luenberger indicator. The application focuses on 1,638 observations of French meat-processing firms for the years 2012–2019. Using m-out-of-n bootstrapped data envelopment analysis, we obtain robust estimates and confidence intervals. The components of dynamic productivity growth fluctuate substantially. However, these fluctuations are often statistically insignificant.

Keywords: profit; productivity; adjustment cost; data envelopment analysis; m-out-of-n bootstrap (search for similar items in EconPapers)
Date: 2023
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