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Do Technology Shocks Lead to Productivity Slowdowns? Evidence From Patent Data

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  • Lone Engbo Christiansen
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    Abstract

    This paper provides empirical evidence on the response of labor productivity to the arrival of new inventions. The benchmark measure of technological progress is given by data on patent applications in the U.S. over the period 1889-2002. The analysis shows that labor productivity may temporarily fall below trend after technological progress. However, the effects on productivity differ between the pre- and post-World War II periods. The pre-war period shows evidence of a productivity slowdown as a result of the arrival of new technology, whereas the post-World War II period does not. Positive effects of technology shocks tend to show up sooner in the productivity data in the later period.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/24.

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    Length: 54
    Date of creation: 01 Jan 2008
    Date of revision:
    Handle: RePEc:imf:imfwpa:08/24

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    Related research

    Keywords: Productivity; Labor; patents; r & d; patent applications; cointegration; error variance; equations; statistics; granger causality; equation; standard deviation; confidence intervals; r & d expenditures; logarithm; research and development; total patent applications; covariance; diffusion process; standard error; patent office; dummy variable; survey; standard errors; time series; constant term; samples; parameter value; bootstrap; linear trend; prediction; dummy variables; total patents; statistic; bivariate analysis; r & d facilities; linear time; linear time trend; explanatory power; research policy; vector autoregression; missing observations; graphical analysis; parameter estimation; sample bias; polynomials; resources survey; research department;

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    References

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    Citations

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    Cited by:
    1. Michelle Alexopoulos, 2004. "Read All About it: What happens following a technology shock," 2004 Meeting Papers 56, Society for Economic Dynamics.
    2. Ingrid Ott & Christian Papilloud & Torben Zülsdorf, 2009. "What Drives Innovation? Causes of and Consequences for Nanotechnologies," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(1), pages 5-26.
    3. Ott, Ingrid & Papilloud, Christian & Zülsdorf, Torben, 2008. "What drives innovation? Causes of and consequences for nanotechnologies," HWWI Research Papers 1-17, Hamburg Institute of International Economics (HWWI).

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