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Cyclical productivity in Europe and the United States, evaluating the evidence on returns to scale and input utilization

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  • Inklaar, Robert

    (Groningen University)

Abstract

This paper studies procyclical productivity growth at the industry level in the U.S. and in three European countries (France, Germany and the Netherlands). Industry-specific demand-side instruments are used to examine the prevalence of non-constant returns to scale and unmeasured input utilization. For the aggregate U.S. economy, unmeasured input utilization seems to explain procyclical productivity. However, this correction still leaves one in three U.S. industries with procyclical productivity. This failure of the model can also be seen in Europe and is mostly concentrated in services industries.

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Bibliographic Info

Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200574.

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Date of creation: 2005
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Handle: RePEc:dgr:rugggd:200574

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Cited by:
  1. John Fernald & Brent Neiman, 2006. "Measuring the Miracle: Market Imperfections and Asia's Growth Experience," 2006 Meeting Papers 785, Society for Economic Dynamics.
  2. Morikawa, Masayuki, 2012. "Demand fluctuations and productivity of service industries," Economics Letters, Elsevier, vol. 117(1), pages 256-258.
  3. Luís Aguiar-Conraria & Yi Wen, 2007. "A note on oil dependence and economic instability," Working Papers 2006-060, Federal Reserve Bank of St. Louis.
  4. Biewen, Martin & Weiser, Constantin, 2011. "A New Approach to Testing Marginal Productivity Theory," IZA Discussion Papers 6113, Institute for the Study of Labor (IZA).
  5. KIYOTA Kozo, 2010. "Productivity, Markup, Scale Economies, and the Business Cycle: Estimates from firm-level panel data in Japan," Discussion papers 10040, Research Institute of Economy, Trade and Industry (RIETI).
  6. Lucas Navarro & Raimundo Soto, 2006. "Procyclical Productivity in Manufacturing," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 43(127), pages 193-220.
  7. Claudia Curi & Paolo Guarda & Ana Lozano-Vivas & Valentin Zelenyuk, 2011. "Is foreign-bank efficiency in financial centers driven by homecountry characteristics?," BCL working papers 68, Central Bank of Luxembourg.
  8. Claudia Curi & Paolo Guarda & Ana Lozano-Vivas & Valentin Zelenyuk, 2013. "Is foreign-bank efficiency in financial centers driven by home or host country characteristics?," Journal of Productivity Analysis, Springer, vol. 40(3), pages 367-385, December.

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