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Semiparametric stochastic metafrontier efficiency of European manufacturing firms

Marijn Verschelde (), Michel Dumont, Glenn Rayp and Bruno Merlevede

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Abstract: In this paper a semiparametric stochastic metafrontier approach is used to obtain insight into the performance of manufacturing firms in Europe. We differ from standard TFP studies at the firm level as we simultaneously allow for inefficiency , noise and do not impose a functional form on the input–output relation. Using AMADEUS firm-level data covering ten manufacturing sectors from seven EU15 countries, (1) we document substantial and persistent differences in performance (with Belgium and Germany as benchmark countries and Spain lagging behind) and a wide technology gap, (2) we confirm the absence of convergence in TFP between the seven selected countries, (3) we highlight a more pronounced technology gap for smaller firms.

Keywords: Productive efficiency; Metafrontier estimation; Semiparametric frontier; Kernel estimation; Stochastic frontier; Manufacturing (search for similar items in EconPapers)
Date: 2015-10
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Citations: View citations in EconPapers (12)

Published in Journal of Productivity Analysis, 2015, 45 (1), pp.53--69. ⟨10.1007/s11123-015-0458-7⟩

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Journal Article: Semiparametric stochastic metafrontier efficiency of European manufacturing firms (2016) Downloads
Journal Article: Semiparametric stochastic metafrontier efficiency of European manufacturing firms (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01563023

DOI: 10.1007/s11123-015-0458-7

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