Learning-by-Doing and Productivity Dynamics in Manufacturing Industries
AbstractThis paper estimates a structural model of learning-by-doing. Treating production experience as a state variable, this paper provides estimates of the structural parameters obtained from the first order conditions arising from the plant’s maximization problem. Estimates are provided using data on 4-digit manufacturing industries and plant-level observations. Using aggregate industry data, the results indicate that estimated learning rates might be considerably lower than previous estimates. The results also reveal considerable variation in estimated learning rates, across broad industry groups, at both the plant-level and the 4-digit industry level. This implies that using results from existing studies that focus upon specific, narrowly defined industries or firms, may lead to misleading conclusions concerning the widespread importance of learning-by-doing for generating productivity dynamics within the manufacturing industry
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.
Bibliographic InfoPaper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 1032.
Length: x pages
Date of creation: 2008
Date of revision:
Contact details of provider:
Postal: Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia
Phone: +61 3 8344 5355
Fax: +61 3 8344 6899
Web page: http://www.economics.unimelb.edu.au
More information through EDIRC
Production Experience; Learning-by-Doing; Structural Estimation;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-25 (All new papers)
- NEP-BEC-2008-11-25 (Business Economics)
- NEP-EFF-2008-11-25 (Efficiency & Productivity)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rosen, Sherwin, 1972. "Learning by Experience as Joint Production," The Quarterly Journal of Economics, MIT Press, vol. 86(3), pages 366-82, August.
- Holtz-Eakin, Douglas, 1988. "Testing for individual effects in autoregressive models," Journal of Econometrics, Elsevier, vol. 39(3), pages 297-307, November.
- R Cooper & Alok Johri, 2000.
"Learning by Doing and Aggregate Fluctuations,"
Department of Economics Working Papers
2000-02, McMaster University.
- Peter Thompson, 2001.
"How Much Did the Liberty Shipbuilders Learn? New Evidence for an Old Case Study,"
Journal of Political Economy,
University of Chicago Press, vol. 109(1), pages 103-137, February.
- Peter Thompson, 1997. "How Much Did the Liberty Shipbuilders Learn? New Evidence for an Old Case Study," Development and Comp Systems 9712001, EconWPA.
- Ron Jarmin, 1993.
"Learning By Doing And Competition In The Early Rayon Industry,"
93-4, Center for Economic Studies, U.S. Census Bureau.
- Ronald S. Jarmin, 1994. "Learning by Doing and Competition in the Early Rayon Industry," RAND Journal of Economics, The RAND Corporation, vol. 25(3), pages 441-454, Autumn.
- Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
- Olley, G Steven & Pakes, Ariel, 1996.
"The Dynamics of Productivity in the Telecommunications Equipment Industry,"
Econometric Society, vol. 64(6), pages 1263-97, November.
- George S Olley & Ariel Pakes, 1992. "The Dynamics Of Productivity In The Telecommunications Equipment Industry," Working Papers 92-2, Center for Economic Studies, U.S. Census Bureau.
- G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
- Ghemawat, Pankaj & Spence, A Michael, 1985. "Learning Curve Spillovers and Market Performance," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 839-52, Supp..
- John R. Baldwin & Wulong Gu, 2002.
"Plant Turnover and Productivity Growth in Canadian Manufacturing,"
OECD Science, Technology and Industry Working Papers
2002/2, OECD Publishing.
- John R. Baldwin & Wulong Gu, 2006. "Plant turnover and productivity growth in Canadian manufacturing," Industrial and Corporate Change, Oxford University Press, vol. 15(3), pages 417-465, June.
- Gu, Wulong & Baldwin, John R., 2003. "Plant Turnover and Productivity Growth in Canadian Manufacturing," Analytical Studies Branch Research Paper Series 2003193e, Statistics Canada, Analytical Studies Branch.
- Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, vol. 91(5), pages 1350-1368, December.
- C. Lanier Benkard, 2000. "Learning and Forgetting: The Dynamics of Aircraft Production," American Economic Review, American Economic Association, vol. 90(4), pages 1034-1054, September.
- Zulehner, Christine, 2003.
"Testing dynamic oligopolistic interaction: evidence from the semiconductor industry,"
International Journal of Industrial Organization,
Elsevier, vol. 21(10), pages 1527-1556, December.
- Christine Zulehner, 1999. "Testing Dynamic Oligopolistic Interaction: Evidence from the Semiconductor Industry," CIG Working Papers FS IV 99-17, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-83, August.
- Donald W.K. Andrews, 1997.
"Consistent Moment Selection Procedures for Generalized Method of Moments Estimation,"
Cowles Foundation Discussion Papers
1146R, Cowles Foundation for Research in Economics, Yale University.
- Donald W. K. Andrews, 1999. "Consistent Moment Selection Procedures for Generalized Method of Moments Estimation," Econometrica, Econometric Society, vol. 67(3), pages 543-564, May.
- Tor Jakob Klette & Zvi Griliches, 1994.
"The Inconsistency of Common Scales Estimators when Output Prices are Unobserved and Endogenous,"
127, Research Department of Statistics Norway.
- Klette, Tor Jakob & Griliches, Zvi, 1996. "The Inconsistency of Common Scale Estimators When Output Prices Are Unobserved and Endogenous," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(4), pages 343-61, July-Aug..
- Klette, T.J., 1992. "The Inconsistency of Common Scale Estimators when Output Prices are unobserved and Endogenous," Harvard Institute of Economic Research Working Papers 1586, Harvard - Institute of Economic Research.
- Tor Jakob Klette & Zvi Griliches, 1992. "The Inconsistency of Common Scale Estimators When Output Prices Are Unobserved and Engogenous," NBER Working Papers 4026, National Bureau of Economic Research, Inc.
- Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
- Eric D. Darr & Linda Argote & Dennis Epple, 1995. "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science, INFORMS, vol. 41(11), pages 1750-1762, November.
- Clarke, Andrew J., 2006. "Learning-by-doing and aggregate fluctuations: Does the form of the accumulation technology matter?," Economics Letters, Elsevier, vol. 92(3), pages 434-439, September.
- Adnrew J. Clarke & Alok Johri, 2008.
"Pro-cyclical Solow Residuals without Technology Shocks,"
Department of Economics Working Papers
2008-02, McMaster University.
- Clarke, Andrew J. & Johri, Alok, 2009. "Procyclical Solow Residuals Without Technology Shocks," Macroeconomic Dynamics, Cambridge University Press, vol. 13(03), pages 366-389, June.
- Ruy Lama & Juan Pablo Medina, 2012. "Is Exchange Rate Stabilization an Appropriate Cure for the Dutch Disease?," International Journal of Central Banking, International Journal of Central Banking, vol. 8(1), pages 5-46, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aminata Doumbia).
If references are entirely missing, you can add them using this form.