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Management Matters

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  • Michelle Alexopoulos
  • Trevor Tombe

Abstract

New indications of managerial innovations are created and then used to show that changes in organizational technologies are an important source of economic growth. Specifically, the analysis demonstrates that, first, in response to a positive managerial technology shock, output, productivity and hours significantly increase in the short run, second, these types of innovations are as important as non-managerial ones in explaining movements in these variables at business cycle frequencies, and, third, product and process innovations promote the development of new managerial techniques.

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Bibliographic Info

Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-406.

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Length: 44 pages
Date of creation: 21 Jun 2010
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-406

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Keywords: Business Cycles; Productivity; Management techniques; Technical Change;

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References

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  13. Michelle Alexopoulos & Jon Cohen, 2009. "Measuring Our Ignorance, One Book at a Time: New Indicators of Technological Change, 1909-1949," Working Papers tecipa-349, University of Toronto, Department of Economics.
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  21. Michelle Alexopoulos, 2004. "Read All About it: What happens following a technology shock," 2004 Meeting Papers 56, Society for Economic Dynamics.
  22. Ramey, Valerie A & Francis, Neville, 2002. "Is The Technology-Driven Real Business Cycle Hypothesis Dead? Shocks and Aggregate Fluctuations Revisted," University of California at San Diego, Economics Working Paper Series qt6x80k3nx, Department of Economics, UC San Diego.
  23. GOSPODINOV, Nikolay & MAYNARD, Alex & PESAVENTO, Elena, 2009. "Sensitivity of Impulse Responses to Small Low Frequency Co-Movements : Reconciling the Evidence on the Effects of Technology Shocks," Cahiers de recherche 03-2009, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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  35. Alexopoulos, Michelle, 2008. "Extra! Extra! Some positive technology shocks are expansionary!," Economics Letters, Elsevier, vol. 101(3), pages 153-156, December.
  36. repec:fth:harver:1473 is not listed on IDEAS
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Citations

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Cited by:
  1. Aivazian, Varouj A. & Lai, Tat-kei & Rahaman, Mohammad M., 2013. "The market for CEOs: An empirical analysis," Journal of Economics and Business, Elsevier, vol. 67(C), pages 24-54.
  2. Nicholas Bloom & Renata Lemos & Raffaella Sadun & Daniela Scur & John Van Reenen, 2014. "The New Empirical Economics of Management," NBER Working Papers 20102, National Bureau of Economic Research, Inc.
  3. Rahaman, Mohammad M. & Zaman, Ashraf Al, 2013. "Management quality and the cost of debt: Does management matter to lenders?," Journal of Banking & Finance, Elsevier, vol. 37(3), pages 854-874.

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