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Whither Greece? Productivity before and after the Subprime Crisis
Department of Economics, Lancaster University Management School, Lancaster, UK
Department of Economics, Athens University of Economics and Business, Athens, Greece
Department of Accounting and Finance, School of Business, Athens University of Economics and Business, Athens, Greece
Hellenic Parliamentary Budget Office (HPBO), Athens, Greece
- 1 Department of Economics, Lancaster University Management School, Lancaster, UK
- 2 Department of Economics, Athens University of Economics and Business, Athens, Greece
- 3 Department of Accounting and Finance, School of Business, Athens University of Economics and Business, Athens, Greece
- 4 Hellenic Parliamentary Budget Office (HPBO), Athens, Greece
Theoretical Economics Letters·Volume 13 (2023)·Pages 1780–1801·Published 26 December 2023·DOI10.4236/tel.2023.137103
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Abstract
This paper employs a stochastic production frontier model with time-varying inefficiency to assess the performance and productivity growth of 9054 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 de crease 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.
KeywordsProductivity GrowthProduction FunctionsStochastic Frontiers
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