IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v49y2017i24p2379-2393.html

Generation and distribution of the total factor productivity gains in US industries

Author

Listed:
  • Jean-Philippe Boussemart
  • Hervé Leleu
  • Edward Mensah

Abstract

This study estimates productivity gains and their distribution among inputs and outputs for 63 American industries over the period 1987–2012. Using the traditional surplus accounting method, the Total Factor Productivity (TFP) growth rates are divided into their price change components in order to determine the stakeholders who do or do not receive price advantages.An initial analysis showed that TFP of US industries increased at an average trend of 0.8% and established that remunerations to employees and firms’ profitability constituted 49% and 39%, respectively, of the accumulated economic surplus from the productivity gains. Suppliers of intermediate inputs retained 12.1% of the surplus. Finally, customers, equipment and structure providers were the losers in the distribution of economic surplus via, respectively, a significant growth of relative final demand prices and a substantial price decrease of these assets.A second step analysis underlined that industries with high TFP growth rates mainly benefited customers and firms via output price decreases and profitability improvements while industries with low or negative TFP changes hurt customers through significant output price increases. The sectoral level analysis also showed that employees’ remunerations depend only slightly on productivity gains produced within their industrial sectors.

Suggested Citation

  • Jean-Philippe Boussemart & Hervé Leleu & Edward Mensah, 2017. "Generation and distribution of the total factor productivity gains in US industries," Applied Economics, Taylor & Francis Journals, vol. 49(24), pages 2379-2393, May.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2379-2393
    DOI: 10.1080/00036846.2016.1240344
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2016.1240344
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2016.1240344?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boussemart, Jean-Philippe & Leleu, Hervé & Mensah, Edward & Shitikova, Karina, 2020. "Technological catching-up and structural convergence among US industries," Economic Modelling, Elsevier, vol. 84(C), pages 135-146.
    2. Tomas Balezentis & Vaida Sapolaite, 2022. "Productivity surplus and its distribution in Lithuanian agriculture," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(3), pages 721-740, August.
    3. Arnaud Sergent & Jean-François Ruault & Vincent Banos & Mathieu Nefe & David Chen & Anne-Laure Levet & Wilfried Eliegbo Amouzou, 2018. "La compétitivité des filières locales pour la construction bois : état des lieux, enjeux et perspectives d’évolution," Working Papers hal-03277129, HAL.

    More about this item

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:49:y:2017:i:24:p:2379-2393. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.