TITLE:
Whither Greece? Productivity before and after the Subprime Crisis
AUTHORS:
Mike G. Tsionas, Mara E. Vidali, George N. Leledakis, Anastasios E. Tasiopoulos
KEYWORDS:
Productivity Growth, Production Functions, Stochastic Frontiers
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.7,
December
29,
2023
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 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.