Differences in Productivity Between Efficient and Inefficient Firms

Antonio Alvarez and Luis Orea

No 2004/05, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: Standard microeconomic theory does not deal with the behavior of inefficient firms. However it would be useful to know would happens to an inefficient firm if this firm grows or the effects of policy changes. In this paper we develop a model that allows the different behavior of efficient and inefficient firms to be compared.

Keywords: Productivity; inefficiency; cost function (search for similar items in EconPapers)
Pages: 16
Date: 2004
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