Money and productive efficiency: evidence from a high-inflation country
Emerging Markets Finance and Trade
64 - 73
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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. © 2007 M.E. Sharpe, Inc. All rights reserved.
Money demand by firms
Stochastic frontier estimation