IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Cyclical behaviour of productivity growth and price-cost margins: asymmetry and market power effects

  • Daniel Ryan
Registered author(s):

    A cross-sectional analysis was performed on the NBER Manufacturing Productivity database (450 four-digit industries) to investigate the behaviour of total factor productivity growth rates (PROD) and price-marginal cost ratios (PMC) in US manufacturing industries. This analysis allows for asymmetric behaviour and determines the effects of imperfect competition on cyclicality. Results indicate that PROD is procyclical, more so in contractions, and that market power is associated with an even greater increase in PROD during expansions; this suggests that variable input utilization (e.g. labour hoarding) is responsible for productivity growth fluctuations, and that firms in less competitive industries have more slack and can thus use inputs more intensively during booms. PMC decreases in both expansions and contractions, and the contractionary decrease is smaller in monopolistic industries; this can be attributed to capacity constraints in expansions and price cutting in contractions, with monopolistic industries less likely to engage in price competition.

    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.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    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.

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 7 (2000)
    Issue (Month): 5 ()
    Pages: 297-300

    in new window

    Handle: RePEc:taf:apeclt:v:7:y:2000:i:5:p:297-300
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:7:y:2000:i:5:p:297-300. 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: (Michael McNulty)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.