Eficiencia técnica, eficiencia económica y eficiencia dinámica

How to determine how much and what to produce? This is one of the great unknowns in economics. This paper proposes to study the recipes offered by the conventional economics, the keynesian Economics, and the Austrian school of economics, questioning the use of assumptions and the mathematical tools. In addition, we will analyze the concept of dynamic efficiency, which provides a contribution to the debate. The importance of analyzing the various recipes focuses on highlight that the misuse of assumptions may lead to erroneous conclusions by very logical they seem. Key words: Technical Efficiency, Economic Efficiency, Dynamic Efficiency, Production Possibilities Frontier, Indifference Curves. JEL Classification: B10, B25, B41, C61, D24, D50, O12, O33. Resumen: ¿Cómo determinar qué y cuánto producir? Esta es una de las gran-des incógnitas de la economía. El presente trabajo propone estudiar las rece-tas ofrecidas por la economía convencional, el keynesianismo y la Escuela Austriaca de Economía poniendo en tela de juicio el uso de los supuestos y de las herramientas matemáticas. Además, se analizará el con cepto de Eficiencia Dinámica, el cual brinda un aporte al debate. La importancia de analizar las distintas recetas se centra en resaltar que el uso erróneo de supues-tos pueda llevar a conclusiones equivocadas por muy lógicas que parezcan. Palabras clave: Eficiencia Técnica, Eficiencia Económica, Eficiencia Dinámica, Frontera de Posibilidades de Producción, Curvas de Indiferencia. Clasificación JEL: B10, B25, B41, C61, D24, D50, O12, O33.

Foreign-Funded Enterprises and Pollution Halo Hypothesis: A Spatial Econometric Analysis of Thirty Chinese Regions

China is one of the world’s major environmental polluters, therefore, Chinese environmental efficiency is an issue of global importance. In this study, we aim to identify economic factors affecting environmental efficiency scores in different regions of China from a spatial econometric perspective. We measure environmental efficiency scores, relative to the theoretically consistent production possibilities frontier estimated, according to a novel iterative methodology. As expected, we find that environmental efficiency scores are negatively affected by the prevalence of heavy industry sector in the economy, with a higher share of coal as a source of energy exacerbating the problem. We also find evidence that strongly support the pollution halo hypothesis, which credits foreign-funded enterprises with producing in a more environmentally-friendly way. Surprisingly, we find a negative association between the share of tertiary sectors in a regional economy and environmental efficiency—emphasizing the need to address the indirect effects produced on the environment by the seemingly innocuous sectors, such as the hotel sector. We encourage the creation of foreign-funded enterprises, and support formulating environmental protection policies that consider the indirect effects various economic sectors have on the environment.

Cross-Generation and Cross-Country Evidence on the Link between Growth and Volatility

This paper reports on a larger scale econometric study of the sign of the relationship between average growth and growth volatility of GDP per capita. At equilibrium, the negativity or the positivity of the relationship between endogenous growth and business cycles volatility is linked to the movements (left or right side) of (PPF). Tests have focused on cross-generation and cross-country evidence on the link between growth and volatility. If production possibilities frontier movements’ trend is to the left side, countries with a higher standard deviation of growth should have their growth adversely affected if at the same time they lose their comparative advantages. Thus international trade elasticity after a production possibilities frontier movement (ei) determines the sign of the relationship between growth and volatility. If (ei -1) < 0, the sign is negative and positive if (ei – 1) > 0. From the theoretical point of view, a new multidimensional trade and optimal growth mechanisms have been presented.

CAPITAL MISALLOCATION AND AGGREGATE FACTOR PRODUCTIVITY

We propose a sectoral–shift theory of aggregate factor productivity for a class of multisector economies with AK technologies and a constant production possibilities frontier. Loans are partly secured by collateral and partly based on reputation. We find that both the growth rate and total factor productivity (TFP) respond to random and persistent endogenous fluctuations in the sectoral distribution of physical capital, which, in turn, responds to reversible exogenous shifts in relative sector productivities. Endogenous debt limits on secured and unsecured loans slow down capital reallocation, preventing the equalization of risk-adjusted equity yields across sectors. Economywide factor productivity and the aggregate growth rate are both negatively correlated with the dispersion of sectoral rates of return, sectoral TFP, and sectoral growth rates. We also find highly volatile limit cycles in economies with small amounts of collateral.

Measuring Intellectual Capital in Higher Education

Universities establish strategic plans to achieve their goals. However, these plans may not be successful if the needed resources are not available. Arguably, the most valuable resources in any university are the expertise of its faculty and staff; its intellectual capital. Therefore, if a university effectively measures and manages these valuable resources, it can more effectively create and deploy strategies to achieve its goals. This paper explores methods to effectively measure the intellectual capital in a university. It examines methodologies in the for-profit sector, creates analogies in the academic world, and then seeks to develop classifications which are meaningful in an academic environment. A study is done which mines an institutional repository to analyse expertise and proxy measures of intellectual capital. The results are analysed according to a production possibilities frontier theory.

Cost-effective species conservation: an application to Huemul (Hippocamelus bisulcus) in Chile

In this paper we study the cost-effective allocation of the land in the Cordilleran Protection Area (CPA), Region VIII, Chile, for the conservation of a highly threatened species: the Huemul (Hippocamelus bisulcus). Using a production possibilities frontier (PPF) approach, a linear programming optimization model for a ten-year time period is proposed. Our model takes into account both the preferences of the species for different habitats and the opportunity cost of the land. We evaluate different possibilities of land allocation and identify cost-effective alternatives in the provision of both conservation and income.The results confirm the hypothesis that both the population of Huemul and income from economic activities can be increased compared with current levels. Therefore the current allocation of the land in the CPA is not cost-effective.