Structural change in Finnish manufacturing: The theory of the aggregation of production functions and an empirical analysis with a plant-level panel
In this paper, structural change in the Finnish manufacturing industries is studied using the theory of the aggregation of production functions and longitudinal plant-level data for the period from 1980 to 2005. To characterise the nature of structural change in 12 industries, we examine the invariance of aggregate production functions over time. Aggregate production functions need not be estimated because, according to the theory of the aggregation of production functions, the invariance can be analysed by investigating the stability of capacity density functions, which describe the distribution of value added in these industries. Even though the shapes of aggregate production functions alter over time in most industries, there are differences in timing and in the degree of turbulence across industries. The analysis confirms that in some industries (e.g., the paper industry) the late 1980s marked the beginning of a period of relatively strong structural change. The food and communications equipment manufacturing industries are examples of industries for which the 1990s was a period of turbulence.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Ricardo J. Caballero, 2007. "Specificity and the Macroeconomics of Restructuring," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262033623.
- F. M. Fisher, 1968. "Embodied Technology and the Existence of Labour and Output Aggregates," Review of Economic Studies, Oxford University Press, vol. 35(4), pages 391-412.
- Silvia Ferrari & Francisco Cribari-Neto, 2004. "Beta Regression for Modelling Rates and Proportions," Journal of Applied Statistics, Taylor & Francis Journals, vol. 31(7), pages 799-815.
- Mark Doms & Eric J. Bartelsman, 2000.
"Understanding Productivity: Lessons from Longitudinal Microdata,"
Journal of Economic Literature,
American Economic Association, vol. 38(3), pages 569-594, September.
- Eric J. Bartelsman & Mark Doms, 2000. "Understanding productivity: lessons from longitudinal microdata," Finance and Economics Discussion Series 2000-19, Board of Governors of the Federal Reserve System (U.S.).
- Ricardo J. Caballero & Mohamad L. Hammour, 1994.
"On the Timing and Efficiency of Creative Destruction,"
NBER Working Papers
4768, National Bureau of Economic Research, Inc.
- Ricardo J. Caballero & Mohamad L. Hammour, 1996. "On the Timing and Efficiency of Creative Destruction," The Quarterly Journal of Economics, Oxford University Press, vol. 111(3), pages 805-852.
- Robert M. Solow, 1967. "Some Recent Developments in the Theory of Production," NBER Chapters, in: The Theory and Empirical Analysis of Production, pages 25-53 National Bureau of Economic Research, Inc.
- Jesus Felipe & Franklin M. Fisher, 2003. "Aggregation in Production Functions: What Applied Economists should Know," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 208-262, 05.
- Caballero, Ricardo J & Hammour, Mohamad L, 1994.
"The Cleansing Effect of Recessions,"
American Economic Review,
American Economic Association, vol. 84(5), pages 1350-1368, December.
- Fisher, Franklin M, 1969. "The Existence of Aggregate Production Functions," Econometrica, Econometric Society, vol. 37(4), pages 553-577, October.
- Fisher, Franklin M, 1969. "Approximate Aggregation and the Leontief Conditions," Econometrica, Econometric Society, vol. 37(3), pages 457-469, July.
- Paolino, Philip, 2001. "Maximum Likelihood Estimation of Models with Beta-Distributed Dependent Variables," Political Analysis, Cambridge University Press, vol. 9(04), pages 325-346, January.
- Hyytinen, Ari & Maliranta, Mika, 2011. "Firm Lifecycles and External Restructuring," Discussion Papers 1253, The Research Institute of the Finnish Economy.
- Jens J. Krüger, 2008. "Productivity And Structural Change: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 22(2), pages 330-363, 04.
- F. M. Fisher, 1968. "Embodied Technology and the Aggregation of Fixed and Movable Capital Goods," Review of Economic Studies, Oxford University Press, vol. 35(4), pages 417-428.
- Charles I. Jones, 2005. "The Shape of Production Functions and the Direction of Technical Change," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 517-549.
When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:22:y:2011:i:2:p:116-134. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.