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State Productivity Growth: Catching Up and the Business Cycle

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  • Ball, V. Eldon
  • San Juan, Carlos
  • Ulloa, Camilo

Abstract

This paper examines the relation between the business cycle and convergence in levels of total factor productivity (TFP) across states. First, we find evidence of convergence in TFP levels across the different phases of the business cycle, but the speed of convergence was much greater during periods of contraction in economic activity than during periods of expansion. Second, we find that technology embodied in capital was an important source of productivity growth in agriculture. As with the rate of catch-up, the embodiment effect was much stronger during low economic activity phases of the business cycle.

Suggested Citation

  • Ball, V. Eldon & San Juan, Carlos & Ulloa, Camilo, 2012. "State Productivity Growth: Catching Up and the Business Cycle," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 123334, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:123334
    DOI: 10.22004/ag.econ.123334
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    Keywords

    Production Economics; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;
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