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Using the Manufacturing Productivity Distribution to Evaluate Growth Theories

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  • Jens J. Krüger

    ()
    (University of Jena, Faculty of Economics)

Abstract

Some multi-sector endogenous growth models make strong predictions about productivity differences across sectors in the form of a distribution or density function. In this paper it is demonstrated that this distribution is left-skewed for a wide range of plausible parameter values. This stands in strong contrast to the right-skewed shape of the respective empirical distribution estimated by kernel methods for a measure of relative productivity for more than 450 four-digit U.S. manufacturing industries during 1958-96. This difference is interpreted as evidence in favor of devoting more emphasis on the effects of structural change on the sectoral level in growth models.

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Bibliographic Info

Paper provided by Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät in its series Jenaer Schriften zur Wirtschaftswissenschaft with number 16/2004.

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Date of creation: Jun 2004
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Handle: RePEc:jen:jenasw:2004-16

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Related research

Keywords: multisector growth models; manufacturing productivity distribution; skewness;

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  1. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  2. Ruggiero, John, 1999. "Efficiency estimation and error decomposition in the stochastic frontier model: A Monte Carlo analysis," European Journal of Operational Research, Elsevier, vol. 115(3), pages 555-563, June.
  3. Uwe Cantner & Kristina Dreßler & Jens J. Krüger, 2006. "Firm survival in the German automobile industry," Empirica, Springer, vol. 33(1), pages 49-60, March.
  4. Uwe Cantner & Werner Güth & Andreas Nicklisch & Torsten Weiland, 2004. "Competition in Innovation and Imitation - A Theoretical and Experimental Study -," Jenaer Schriften zur Wirtschaftswissenschaft 01/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
  5. Roland Helm & Michaela Ludl, 2004. "Kundenkarten als Kundenbindungsinstrument des Handels," Jenaer Schriften zur Wirtschaftswissenschaft 07/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
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