Money and productive efficiency - Evidence from a high-inflation country

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Başçı E., Mahmud S. F., Yucel E. M.

EMERGING MARKETS FINANCE AND TRADE, cilt.43, sa.1, ss.64-73, 2007 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 43 Sayı: 1
  • Basım Tarihi: 2007
  • Doi Numarası: 10.2753/ree1540-496x430103
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.64-73
  • Anahtar Kelimeler: high inflation, inventories, manufacturing, money demand by firms, stochastic frontier estimation, Turkey, RELATIVE PRICE VARIABILITY, REAL CASH BALANCES, UNITED-STATES, FRONTIER, LIQUIDITY, ECONOMY, MODEL
  • TED Üniversitesi Adresli: Hayır

Özet

This paper examines how money balances held by manufacturing firms affect their efficiency in generating sales revenue in a high-inflation economy. The analysis employs data from Turkish firms to estimate a stochastic frontier model, finding a strong positive association between the firms' money holdings and their efficiency. However the role of money balances seems to diminish as firms hold higher raw material inventories.