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Entrepreneurial Efficiency: An Empirical Framework and Evidence
Katsuya Takii 서울대학교 경제연구소 2007 Seoul journal of economics Vol.20 No.4
This paper examines a particular aspect of entrepreneurship, namely firms' activities in adapting to idiosyncratic environmental changes by appropriately reallocating resources. It presents an empirical framework that examines the social value of firms' abilities to predict and adapt to the movement of idiosyncratic shocks. In order to demonstrate how to implement our menthod, the quantitative effect of firms' prediction ability on Tatal Factor Productivity (TFP) is investigated using semi-aggregated data from Japan's Census of Manufacturing.