GAUK 684012 Determinants of Economic Efficiency in Czech Enterprises
|Principal investigator:||Jan Průša M.Phil. (Cantab), Ph.D.|
Mgr. Pavel Ryska MPhil
|Description:||We propose to elaborate a modified method of estimating economic efficiency, which follows nonparametric approaches by Daraio & Simar (2005) and by Kuosmanen (2006). The innovation concerns the contents of analysis and the techniques of estimation. Our models will account for price endogeneity and will employ a strictly money-valued measure of efficiency. This approach will improve realism of assumptions, which will bring the economic interpretation of results closer to real decision-making.
With this model we will investigate the hypothesis that Czech enterprises are efficient. We will focus on the dynamic dimension of capital accumulation: how investment affects production abilities of companies. This perspective will be compared with detailed analysis of two current inputs in production function – labour costs in the form of efficiency wages; and energy costs in the form of renewable subsidies.
Capital efficiency will be measured as related to labour; time; size of the company and finally compared with efficiency in the United Kingdom. Contrary to comparative studies in Central European region, our analysis will be new: Because the UK and the Czech Republic have relatively less intensive economic relationship, the comparison will not be biased by exchange rates fluctuations, one-off trade shocks and similar effects.
|Work in grant:|