| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 482825 | European Journal of Operational Research | 2006 | 15 Pages |
Abstract
This paper analyses the mechanisms through which binding finance constraints can induce debt-constrained firms to improve technical efficiency to guarantee positive profits. This hypothesis is tested on a sample of firms belonging to the Italian manufacturing. Technical efficiency scores are computed by estimating parametric production frontiers using the one stage approach as in Battese and Coelli [Battese, G., Coelli, T., 1995. A model for technical efficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20, 325–332]. The results support the hypothesis that a restriction in the availability of financial resources can affect positively efficiency.
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Authors
Vania Sena,