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Management matters

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  • Alexopoulos, Michelle
  • Tombe, Trevor

Abstract

To evaluate the effect of managerial innovations on the economy, a series of new indicators capturing these advances is constructed. Three findings emerge from the analysis. First, following a positive managerial shock, output and productivity significantly increase and hours modestly rise in the short run. Second, management innovations are generally as important as non-managerial ones in explaining movements in these variables at business cycle frequencies. Finally, product and process innovations help to promote the development of new managerial techniques.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Monetary Economics.

Volume (Year): 59 (2012)
Issue (Month): 3 ()
Pages: 269-285

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Handle: RePEc:eee:moneco:v:59:y:2012:i:3:p:269-285

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Web page: http://www.elsevier.com/locate/inca/505566

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References

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  7. GOSPODINOV, Nikolay & MAYNARD, Alex & PESAVENTO, Elena, 2009. "Sensitivity of Impulse Responses to Small Low Frequency Co-Movements : Reconciling the Evidence on the Effects of Technology Shocks," Cahiers de recherche 03-2009, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  8. Susanto Basu & John Fernald & Miles Kimball, 2004. "Are technology improvements contractionary?," Working Paper Series WP-04-20, Federal Reserve Bank of Chicago.
  9. Lee E. Ohanian, 2002. "Why did productivity fall so much during the Great Depression?," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr.
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  12. Bloom, Nicholas & Van Reenen, John, 2006. "Measuring and Explaining Management Practices Across Firms and Countries," CEPR Discussion Papers 5581, C.E.P.R. Discussion Papers.
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  24. Fernald, John G., 2007. "Trend breaks, long-run restrictions, and contractionary technology improvements," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2467-2485, November.
  25. Garcia, Angel & Jaumandreu, Jordi & Rodriguez, Cesar, 2004. "Innovation and jobs: evidence from manufacturing firms," MPRA Paper 1204, University Library of Munich, Germany.
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  35. repec:fth:harver:1473 is not listed on IDEAS
  36. Michelle Alexopoulos & Jon Cohen, 2011. "Volumes of evidence: examining technical change in the last century through a new lens," Canadian Journal of Economics, Canadian Economics Association, vol. 44(2), pages 413-450, May.
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Cited by:
  1. Aivazian, Varouj A. & Lai, Tat-kei & Rahaman, Mohammad M., 2013. "The market for CEOs: An empirical analysis," Journal of Economics and Business, Elsevier, vol. 67(C), pages 24-54.
  2. Rahaman, Mohammad M. & Zaman, Ashraf Al, 2013. "Management quality and the cost of debt: Does management matter to lenders?," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 854-874.

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