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