This paper explores how accounting for variations in factor utilization rates alters the empirical characteristics of productivity residuals in the United States and Canada. Using data on 19 manufacturing industries, we study the behavior of productivity using three proxies for capital services. We find that adjusting for cyclical movements in capital utilization alters many of the empirical characteristics of productivity, both within and across countries.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
8475.
Length: Date of creation: Sep 2001 Date of revision: Handle: RePEc:nbr:nberwo:8475
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Find related papers by JEL classification: E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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