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Demand Fluctuations and Productivity of Service Industries

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  • MORIKAWA Masayuki

Abstract

The purpose of this paper is to investigate empirically the relationship between demand fluctuations and productivity of service industries. Specifically, by using unique establishment-level data on service industries in Japan, this paper estimates production functions for six narrowly defined personal-service industries. In almost all the examined service industries, statistically and economically significant negative effects of demand variation on establishment-level productivity are found. This result suggests dispersing holidays may have positive effects on the productivity of service industries.

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  • MORIKAWA Masayuki, 2008. "Demand Fluctuations and Productivity of Service Industries," Discussion papers 08030, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:08030
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    1. Miles S. Kimball & John G. Fernald & Susanto Basu, 2006. "Are Technology Improvements Contractionary?," American Economic Review, American Economic Association, vol. 96(5), pages 1418-1448, December.
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    4. Kawamoto, Takuji, 2005. "What Do the Purified Solow Residuals Tell Us about Japan's Lost Decade?," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 23(1), pages 113-148, February.
    5. Masayuki Morikawa, 2011. "Economies of Density and Productivity in Service Industries: An Analysis of Personal Service Industries Based on Establishment-Level Data," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 179-192, February.
    6. Daniel S. Hamermesh & Caitlin Knowles Myers & Mark L. Pocock, 2008. "Cues for Timing and Coordination: Latitude, Letterman, and Longitude," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 223-246, April.
    7. T. Miyagawa & Y. Sakuragawa & M. Takizawa, 2006. "Productivity And Business Cycles In Japan: Evidence From Japanese Industry Data," The Japanese Economic Review, Japanese Economic Association, vol. 57(2), pages 161-186.
    8. Baker, Laurence C. & Phibbs, Ciaran S. & Guarino, Cassandra & Supina, Dylan & Reynolds, James L., 2004. "Within-year variation in hospital utilization and its implications for hospital costs," Journal of Health Economics, Elsevier, vol. 23(1), pages 191-211, January.
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    Cited by:

    1. Roberto Gabriele, & Enrico Tundis, & Enrico Zaninotto, 2015. "Public Subsidies and Development of Hotel Industry: Evidence from a Place-based Policy," DEM Discussion Papers 2015/10, Department of Economics and Management.
    2. MORIKAWA Masayuki, 2017. "Dispersion and Volatility of TFPQ in Service Industries," Discussion papers 17088, Research Institute of Economy, Trade and Industry (RIETI).
    3. KONISHI Yoko & NISHIYAMA Yoshihiko, 2016. "Efficiency of the Retail Industry: Case of inelastic supply functions," Discussion papers 16054, Research Institute of Economy, Trade and Industry (RIETI).
    4. MORIKAWA Masayuki, 2016. "Foreign Tourists and Capacity Utilization in the Accommodation Industry," Discussion papers 16064, Research Institute of Economy, Trade and Industry (RIETI).
    5. MORIKAWA Masayuki, 2017. "Impact of Foreign Tourists on Productivity in the Accommodation Industry: A panel data analysis," Discussion papers 17106, Research Institute of Economy, Trade and Industry (RIETI).
    6. Park, Sangwon & Yaduma, Natina & Lockwood, Andrew J. & Williams, Allan M., 2016. "Demand fluctuations, labour flexibility and productivity," Annals of Tourism Research, Elsevier, vol. 59(C), pages 93-112.

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