Open AccessTransient and persistent efficiency: an application to Portuguese wineries
Author(s) -
Samuel Faria,
Sofia Gouveia,
João Rebelo
Publication year - 2022
Publication title -
economics and business letters
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.197
H-Index - 4
ISSN - 2254-4380
DOI - 10.17811/ebl.11.1.2022.16-23
Subject(s) - competition (biology) , portuguese , industrial organization , business , transient (computer programming) , panel data , wine , economics , computer science , econometrics , ecology , philosophy , linguistics , physics , optics , biology , operating system
The computation of productive efficiency provides key insights for firm managers and policymakers towards improvements in the competitiveness of businesses and industries, namely those that observe firm heterogeneity and high competition, as is the case of wine. Benefiting from Portuguese wineries panel data, this research measures firms’ productive efficiency, decomposing it into transient and persistent. Results allow us to conclude that wineries can boost overall performance through better input management and long-term policies, such as improvements in market regulation and public firm support.