AGGLOMERATION EXTERNALITIES, PRODUCTIVITY, AND TECHNICAL INEFFICIENCY

Autor: George E. Battese, Ragnar Tveterås
Rok vydání: 2006
Předmět:
Zdroj: Journal of Regional Science. 46:605-625
ISSN: 1467-9787
0022-4146
DOI: 10.1111/j.1467-9787.2006.00470.x
Popis: Agglomeration externalities can have positive effects on both the production possibility frontier and technical inefficiency of firms. Increased levels of localized knowledge spillovers and substitution of internal inputs with external inputs may lead to fewer errors in decision-making and execution of production tasks, thus causing firms to become technically more efficient relative to the production frontier. When we estimate a stochastic frontier production model on a large panel of salmon aquaculture farms, we find econometric support for positive agglomeration externalities on both the production frontier and technical inefficiency.
Databáze: OpenAIRE