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Keiichi Shima
''Lumpy capital adjustment and technical efficiency''
( 2010, Vol. 30 No.4 )
This paper investigates the impact of lumpy capital adjustment on productivity at the firm level using data on Japanese manufacturing industries. We estimate stochastic production frontiers, taking firm heterogeneity into account. We find that investment spikes are negatively related to technical efficiency. Furtermore, we find a negative relationship between machinery capital age and measured efficiency.
JEL: E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
D2 - Production and Organizations: General
Manuscript Received : Sep 20 2010 Manuscript Accepted : Oct 28 2010

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