Money and productive efficiency: evidence from a high-inflation country

Date
2007
Authors
Başçı, E.
Mahmud, S. F.
Yucel, E. M.
Advisor
Instructor
Source Title
Emerging Markets Finance and Trade
Print ISSN
1540-496X
Electronic ISSN
1558-0938
Publisher
Routledge
Volume
43
Issue
1
Pages
64 - 73
Language
English
Type
Article
Journal Title
Journal ISSN
Volume Title
Abstract

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.

Course
Other identifiers
Book Title
Keywords
High inflation, Inventories, Manufacturing, Money demand by firms, Stochastic frontier estimation, Turkey
Citation
Published Version (Please cite this version)