Assessing dynamic inefficiency of the Spanish construction sector pre- and post-financial crisis |
| |
Authors: | Magdalena Kapelko Alfons Oude Lansink Spiro E Stefanou |
| |
Institution: | 1. Institute of Applied Mathematics, Department of Logistics, Wroclaw University of Economics, ul. Komandorska 118/120, 53-345 Wroclaw, Poland;2. Business Economics Group, Wageningen University, Hollandseweg 1, 6706 KN Wageningen, Netherlands;3. Department of Agricultural Economics and Rural Sociology, Penn State University, 208B Armsby Building, University Park, PA 16802, USA |
| |
Abstract: | This paper undertakes the full decomposition of dynamic cost inefficiency into technical, scale and allocative inefficiency based on the dynamic directional distance function. The empirical application estimates dynamic inefficiency in the Spanish construction industry before and during the current financial crisis over the period 2001–2009. Static inefficiency measures are biased in a context of a significant economic crisis with large investments and disinvestments as they do not account for costs in the adjustment of quasi-fixed factors. Allocative inefficiency is smaller, while technical inefficiency is larger when using the dynamic compared to the static framework. Results further indicate that overall dynamic cost inefficiency is very high with technical inefficiency being the largest component, followed by allocative and scale inefficiency. Moreover, overall dynamic cost inefficiency is significantly larger before the beginning of the financial crisis than during the financial crisis. Larger firms are less technically and scale inefficient than smaller firms on average, but have more problems in choosing the mix of inputs that minimizes their long-term costs. Firms that went bankrupt, on average, have a higher overall dynamic cost inefficiency and scale inefficiency than continuing firms. |
| |
Keywords: | Data envelopment analysis Dynamic inefficiency Construction sector |
本文献已被 ScienceDirect 等数据库收录! |
|