This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Identifying Externalities in UK Manufacturing Using Direct Estimation of an Average Cost Function

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Ciaran Driver (Tanaka Business School, Imperial College, London)
Paul Temple (University of Surrey)
Giovanni Urga (Cass Business School, London)

Additional information is available for the following registered author(s):

Abstract

We test for the presence of externalities in UK manufacturing industry, seeking to identify the channels through which they operate. Using survey data on average variable cost available by industry, we estimate a translog cost function, storing the coefficients on time dummies for a second stage regression in which measures of external activity are entered to capture omitted spillover effects. We carry out the analysis for total manufacturing and for a panel of ten sub-sectors. We find weak evidence that fixed investment represents one significant channel; there is stronger evidence for an effect stemming from high utilisation in the mechanical engineering sector. This appears to be a combination of both thick market effects and knowledge based externalities.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. 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.

File URL: http://www.econ.surrey.ac.uk/discussion_papers/2005/DP10-05.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Department of Economics, University of Surrey in its series Department of Economics Discussion Papers with number 1005.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 19 pages
Date of creation: Jun 2005
Date of revision:
Handle: RePEc:sur:surrec:1005

Contact details of provider:
Postal: Guildford, Surrey GU2 5XH
Phone: (01483) 259380
Fax: (01483) 259548
Email:
Web page: http://www.econ.surrey.ac.uk
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Alex Mandilaras).

Related research
Keywords: Costs; Productivity; Externalities; Investment; Manufacturing;

Other versions of this item:

Find related papers by JEL classification:
L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
D62 - Microeconomics - - Welfare Economics - - - Externalities

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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.:
  1. Ciaran Driver & Giovanni Urga, 2004. "Transforming Qualitative Survey Data: Performance Comparisons for the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(1), pages 71-89, 02. [Downloadable!] (restricted)
  2. Catherine J. Morrison Paul & Donald S. Siegel, 1999. "Scale Economies and Industry Agglomeration Externalities: A Dynamic Cost Function Approach," American Economic Review, American Economic Association, vol. 89(1), pages 272-290, March. [Downloadable!] (restricted)
  3. Mansfield, Edwin, 1985. "How Rapidly Does New Industrial Technology Leak Out?," Journal of Industrial Economics, Blackwell Publishing, vol. 34(2), pages 217-23, December. [Downloadable!] (restricted)
  4. Bartelsman, Eric J & Caballero, Ricardo J & Lyons, Richard K, 1994. "Customer- and Supplier-Driven Externalities," American Economic Review, American Economic Association, vol. 84(4), pages 1075-84, September. [Downloadable!] (restricted)
  5. Basu, Susanto & Fernald, John G., 1995. "Are apparent productive spillovers a figment of specification error?," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 165-188, August. [Downloadable!] (restricted)
    Other versions:
  6. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March. [Downloadable!] (restricted)
  7. Oulton, Nicholas, 1996. "Increasing Returns and Externalities in UK Manufacturing: Myth or Reality?," Journal of Industrial Economics, Blackwell Publishing, vol. 44(1), pages 99-113, March. [Downloadable!] (restricted)
    Other versions:
  8. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1987-3), pages 783-832. [Downloadable!]
  9. Sharon G. Harrison, 2003. "Returns to Scale and Externalities in the Consumption and Investment Sectors," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(4), pages 963-976, October. [Downloadable!] (restricted)
  10. Caballero, Ricardo J. & Lyons, Richard K., 1990. "Internal versus external economies in European industry," European Economic Review, Elsevier, vol. 34(4), pages 805-826, June. [Downloadable!] (restricted)
    Other versions:
  11. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1988. "Appropriating the Returns from Industrial R&D," Cowles Foundation Discussion Papers 862, Cowles Foundation, Yale University. [Downloadable!]
  12. Jimenez, Miguel & Marchetti, Domenico J, 2002. "Interpreting the Procyclical Productivity of Manufacturing Sectors: Can We Really Rule Out External Effects?," Applied Economics, Taylor and Francis Journals, vol. 34(7), pages 805-17, May. [Downloadable!] (restricted)
  13. Argia M. Sbordone, 1994. "Interpreting the procyclical productivity of manufacturing sectors: external effects or labor hoarding?," Working Paper Series, Macroeconomic Issues 94-9, Federal Reserve Bank of Chicago.
    Other versions:
  14. Caballero, Ricardo J. & Lyons, Richard K., 1992. "External effects in U.S. procyclical productivity," Journal of Monetary Economics, Elsevier, vol. 29(2), pages 209-225, April. [Downloadable!] (restricted)
    Other versions:
  15. Basu, Susanto, 1996. "Procyclical Productivity: Increasing Returns or Cyclical Utilization?," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 719-51, August. [Downloadable!] (restricted)
    Other versions:
Full references

Statistics
Access and download statistics

Did you know? Over 1000 institutions contribute their bibliographic data directly to this service.

This page was last updated on 2009-11-30.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.