Başçı, E.Mahmud, S. F.Yucel, E. M.2016-02-082016-02-0820071540-496Xhttp://hdl.handle.net/11693/23586This 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.EnglishHigh inflationInventoriesManufacturingMoney demand by firmsStochastic frontier estimationTurkeyMoney and productive efficiency: evidence from a high-inflation countryArticle10.2753/REE1540-496X4301031558-0938