Unraveling the Productivity Growth Slowdown in the United States, Canada and Japan: The Effects of Subequilibrium, Scale Economies and Markups
AbstractMeasures of productivity growth typically include in the productivity "residual" the impacts of fixity of factors (subequilibrium), costs of adjustment, returns to scale and markups. This paper proposes a general framework for adjusting the residual to accommodate these impacts, by first correcting and then decomposing traditional measures. Use of the framework is illustrated empirically for the United States, Japanese and Canadian manufacturing sectors, using an econometric model that allows explicit incorporation and measurement of these factors. The adjusted measures show that a significant amount of cyclical and secular change in measured productivity growth can be attributed to production characteristics other than technical change, particularly scale effects. Copyright 1992 by MIT Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 74 (1992)
Issue (Month): 3 (August)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Giuseppe Nicoletti & Stefano Scarpetta, 2003.
"Regulation, Productivity and Growth: OECD Evidence,"
OECD Economics Department Working Papers
347, OECD Publishing.
- Giuseppe Nicoletti & Stefano Scarpetta, 2003. "Regulation, productivity and growth: OECD evidence," Economic Policy, CEPR & CES & MSH, vol. 18(36), pages 9-72, 04.
- Nicoletti, Giuseppe & Scarpetta, Stefano, 2003. "Regulation, productivity, and growth : OECD evidence," Policy Research Working Paper Series 2944, The World Bank.
- Richard W. Kopcke & Richard S. Brauman, 2001. "The performance of traditional macroeconomic models of businesses' investment spending," New England Economic Review, Federal Reserve Bank of Boston, pages 3-39.
- Perri, F., 1999.
"The Role of Fiscal Policy in Japan: a Quantitative Study,"
New York University, Leonard N. Stern School Finance Department Working Paper Seires
99-16, New York University, Leonard N. Stern School of Business-.
- Perri, Fabrizio, 2001. "The role of fiscal policy in Japan: a quantitative study," Japan and the World Economy, Elsevier, vol. 13(4), pages 387-404, December.
- Fabrizio Perri, 1999. "The Role of Fiscal Policy in Japan: A Quantitative Study," Working Papers 99-16, New York University, Leonard N. Stern School of Business, Department of Economics.
- Ryan, Daniel J., 1997. "Trends in market power and productivity growth rates in US and Japanese manufacturing," Economics Letters, Elsevier, vol. 57(2), pages 183-187, December.
- Acemoglu, Daron & Antras, Pol & Helpman, Elhanan, 2007.
"Contracts and Technology Adoption,"
3199063, Harvard University Department of Economics.
- Kevin J. Fox & W. Erwin Diewert, 2004.
"On the Estimation of Returns to Scale, Technical Progress and Monopolistic Markups,"
Econometric Society 2004 Australasian Meetings
310, Econometric Society.
- Diewert, W. Erwin & Fox, Kevin J., 2008. "On the estimation of returns to scale, technical progress and monopolistic markups," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 174-193, July.
- Bernhard Brümmer & Thomas Glauben, 2004. "Zur Messung und Erklärung von Produktivitätsentwicklungen: Eine Analyse auf Basis eines stochastischen Distanzfrontieransatzes," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 224(4), pages 420-444, July.
- Richard W. Kopcke, 1993. "The determinants of business investment: has capital spending been surprisingly low?," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-31.
- Joseph Byrne & Giorgio Fazio & Davide Piacentino, 2009. "Total Factor Productivity Convergence among Italian Regions: Some Evidence from Panel Unit Root Tests," Regional Studies, Taylor and Francis Journals, vol. 43(1), pages 63-76.
- Kevin J Fox, 2005. "Returns to Scale, Technical Progress and Total Factor Productivity Growth in New Zealand Industries," Treasury Working Paper Series 05/04, New Zealand Treasury.
- Azzam, Azzeddine M. & Lopez, Elena & Lopez, Rigoberto A., 2002.
"Imperfect Competition and Total Factor Productivity Growth in U.S. Food Processing,"
25147, University of Connecticut, Food Marketing Policy Center.
- Azzeddine M. Azzam & Elena Lopez & Rigoberto A. Lopez, 2002. "Imperfect Competition and Total Factor Productivity Growth in U.S. Food Processing," Food Marketing Policy Center Research Reports 068, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Rodriguez, Xose Anton & Arias, Carlos, 2008. "The effects of resource depletion on coal mining productivity," Energy Economics, Elsevier, vol. 30(2), pages 397-408, March.
- Hollanders,Hugo, 1999. "From Which Side to the Steady State of the Augmented Solow Model? The Role of Country-Specific Total Factor Productivity Growth Rates," Research Memoranda 003, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Moreno, Rosina & Lopez-Bazo, Enrique & Artis, Manuel, 2002. "Evaluating the optimality of Spanish industry (1980-1993)," ERSA conference papers ersa02p353, European Regional Science Association.
- Daniel Ryan, 2000. "Fluctuations in productivity growth rates and input utilization in U.S. manufacturing," Atlantic Economic Journal, International Atlantic Economic Society, vol. 28(2), pages 150-163, June.
- Boisso, Dale & Grosskopf, Shawna & Hayes, Kathy, 2000. "Productivity and efficiency in the US: effects of business cycles and public capital," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 663-681, December.
- Crafts, Nicholas & Mills, Terence C, 2001. "TFP Growth in British and German Manufacturing, 1950-96," CEPR Discussion Papers 3078, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.