Profits and productivity
Grifell-Tatjé, Emili (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa)
Lovell, C. A. Knox (University of New South Wales. Centre for Applied Economic Research)

Date:	1999
Abstract:	In this study we consider the linkage between productivity change and profit change. We develop an analytical framework in which profit change between one period and the next is decomposed into three sources: (i) a productivity change effect (which includes a technical change effect and an operating efficiency effect), (ii) an activity effect (which includes a product mix effect, a resource mix effect and a scale effect), and (iii) a price effect. We then show how to quantify the contribution of each effect, using only observed prices and quantities of products and resources in the two periods. We illustrate our analytical decomposition of profit change with an empirical application to Spanish banking during the period 1987 - 1994.
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Language:	Anglès
Document:	Article ; recerca ; Versió acceptada per publicar
Subject:	Profits ; Productivity ; Banking
Published in:	Management science, Vol. 45 Núm. 9 (September 1999) , p. 1177-1193, ISSN 0025-1909

DOI: 10.1287/mnsc.45.9.1177

Postprint 34 p, 212.8 KB

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