Transient and persistent efficiency: an application to Portuguese wineries

• Samuel Faria ^[1] ; Sofia Gouveia ^[1] ; João Rebelo ^[1]
  1. [1] Universidade de Trás-os-Montes e Alto Douro

     Universidade de Trás-os-Montes e Alto Douro

     Vila Real (São Pedro), Portugal

     
• Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 11, Nº. 1, 2022, págs. 16-23
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • 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.