Whither Greece? Productivity before and after the Subprime Crisis
Theoretical Economics Letters, volume 13, issue 07, 2023[10.4236/tel.2023.137103]
33 Pages Posted: 19 Jan 2024
Date Written: November 2023
Abstract
This paper employs a stochastic production frontier model with time-varying inefficiency to assess the performance and productivity growth of 9,054 Greek firms from 1996 to 2017. Various forms of capital are incorporated, extending beyond physical capital and labor, to estimate productivity growth and disentangle its components. Our results indicate that, despite a significant decrease in productivity growth after 2007, it remains positive on average, albeit with notable variations among firms. These findings offer valuable insights to inform future policy decisions in Greece, which may have implications for other nations as well.
Keywords: Productivity growth, Production functions, Stochastic frontiers
JEL Classification: C13, C33, D24, G30, L25
Suggested Citation: Suggested Citation