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The Effect of Technology Choice on Automobile Assembly Plant Productivity

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  • Johannes van Biesebroeck

    (University of Toronto, Canada)

Abstract

Productivity growth is usually represented by a continuous shift of the production or cost function. In the automobile industry, there is evidence of a more discrete change in the technology. I estimate a structural model of production and technology choice, using a panel of US automobile assembly plants from 1963 to 1996. New decomposition results suggest that plant-level changes, as opposed to compositional effects, are the most important determinant of aggregate productivity growth.

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File URL: http://www.esr.ie/Vol33_1VanBieseroeck.pdf
File Function: First version, 2002
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Bibliographic Info

Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 33 (2002)
Issue (Month): 1 ()
Pages: 65-73

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Handle: RePEc:eso:journl:v:33:y:2002:i:1:p:65-73

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  1. James Levinsohn & Amil Petrin, 1999. "When Industries Become More Productive, Do Firms?," NBER Working Papers 6893, National Bureau of Economic Research, Inc.
  2. John Kwoka, 2001. "Automobiles: The Old Economy Collides with the New," Review of Industrial Organization, Springer, vol. 19(1), pages 55-69, August.
  3. Johannes Van Biesebroeck, 2003. "Productivity Dynamics with Technology Choice: An Application to Automobile Assembly," Review of Economic Studies, Wiley Blackwell, vol. 70(1), pages 167-198, January.
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Cited by:
  1. TAKEDA Yosuke & UCHIDA Ichihiro, 2009. "Technological Externalities and Economic Distance: A case of the Japanese automobile suppliers," Discussion papers 09051, Research Institute of Economy, Trade and Industry (RIETI).

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  1. Studies on the automobile industry

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