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Why the Demand Fluctuations and Productivity of Service Industries (Japanese)

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  • MORIKAWA Masayuki

Abstract

The purpose of this paper is to investigate empirically the relationship between demand fluctuations and productivity of service industries. Specifically, by using unique establishment-level data on service industries in Japan, this paper estimates production functions for six narrowly defined personal-service industries. In almost all the examined service industries, statistically and economically significant negative effects of demand variation on establishment-level productivity are found. This result suggests dispersing holidays may have positive effects on the productivity of service industries.

Suggested Citation

  • MORIKAWA Masayuki, 2008. "Why the Demand Fluctuations and Productivity of Service Industries (Japanese)," Discussion Papers (Japanese) 08042, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:rdpsjp:08042
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