@phdthesis{Badunenko2007, author = {Badunenko, Oleg}, title = {Efficiency of German Manufacturing Firms During the 1990's}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:521-opus-219}, school = {Europa-Universit{\"a}t Viadrina Frankfurt}, year = {2007}, abstract = {The first chapter investigates the factors that explain the level of technical efficiency of a firm. In an empirical analysis, a unique sample of about 35,000 firms in 256 industries from the German Cost Structure Census over the years 1992-2004 is used. The technical efficiency of the firms is estimated using distribution free assumption and then it is relates to firm- and industry-specific characteristics. One third of the explanatory power is due to industry effects. Size accounts for another 25 percent and the headquarter's location explains ten percent of the variation in efficiency. Most other firm characteristics such as ownership structure, legal form, age of the firm and outsourcing activities have an extremely small explanatory power. R\&D activity does not exert any positive influence on technical efficiency. In the second chapter a special attention is given to allocative efficiency. The traditional approach to measuring allocative efficiency exploits input prices, which are rarely known at the firm level. In this paper we propose a new approach to measure allocative efficiency as a profit-oriented distance to the frontier in a profit--technical efficiency space, which does not require information on input prices. To validate the new approach, we perform a Monte-Carlo experiment providing evidence that the estimates of allocative efficiency employing the new and the traditional approach are highly correlated. Finally, as an illustration, we apply the new approach to a sample of about 900 enterprises from the chemical manufacturing industry in Germany. The third chapter notices that the German chemical manufacturing industry experienced a major downsizing during 1992--2004. On the average, size of the firm almost halved. Using modern frontier efficiency analysis, this paper investigates technical and scale efficiency of firms. Based on reliable census data, analysis suggests that firms were not primarily concerned with improving technical efficiency, but rather establishing of an optimal scale of production. The share of scale efficiency firms has been persistently increasing, and downsizing was found to be a rational behavior because all scale inefficient firms have continually operated on decreasing returns to scale portion of technology.}, subject = {Effizienz}, language = {en} }