Exploring the Covariance Term in the Olley-Pakes Productivity Decomposition

Giannis Karagiannis and Suzanna M. Paleologou ()
Additional contact information
Suzanna M. Paleologou: Aristotle University of Thessaloniki

A chapter in Productivity and Inequality, 2018, pp 169-182 from Springer

Abstract: Abstract The aim of this paper is to explore the covariance term in the Olley-Pakes productivity decomposition in order to provide further insights underlying the reallocation effect. In particular, we consider how firms are classified according to their size and productivity scores. We use this information to examine the extent and the importance of the reallocation effect in the Greek cotton industry during a period of high price support. The empirical results show that the policy regime not only allowed least productive farms to survive more than otherwise but also caused the downsizing of the most productive farms and/or the expansion of the least productive ones.

Keywords: Olley-Pakes decomposition; Covariance term; Reallocation effect; Price distortions (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-68678-3_8

Ordering information: This item can be ordered from
http://www.springer.com/9783319686783

DOI: 10.1007/978-3-319-68678-3_8

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().