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Demand Fluctuations and Productivity of Service Industries

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  • Masayuki MORIKAWA

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.

Suggested Citation

  • Masayuki MORIKAWA, 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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    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.
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    Cited by:

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    2. Francisco Javier Sáez-Fernández & Ignacio Jiménez-Hernández & María del Sol Ostos-Rey, 2020. "Seasonality and Efficiency of the Hotel Industry in the Balearic Islands: Implications for Economic and Environmental Sustainability," Sustainability, MDPI, vol. 12(9), pages 1-17, April.
    3. 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.
    4. Morikawa, Masayuki, 2017. "Dispersion and Volatility of TFPQ in Service Industries," SSPJ Discussion Paper Series DP17-008, Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University.
    5. Federico Inchausti-Sintes & Ubay Pérez-Granja & José Juan Morales-Mohamed, 2021. "Analysing labour productivity and its economic consequences in the two Spanish tourist archipelagos," Tourism Economics, , vol. 27(5), pages 1039-1059, August.
    6. Morikawa, Masayuki, 2017. "Impact of Foreign Tourists on Productivity in the Accommodation Industry : A panel data analysis," SSPJ Discussion Paper Series DP17-012, Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University.
    7. Christian Hernández-Guedes & Jorge V Pérez-Rodríguez & Casiano Manrique-de-Lara-Peñate, 2024. "Input inefficiencies in the hotel industry. A non-radial directional performance measurement," Tourism Economics, , vol. 30(7), pages 1753-1779, November.
    8. Yoko Konishi & Yoshihiko Nishiyama, 2020. "Efficiency of the Retail Industry and Inelastic Supply," International Association of Decision Sciences, Asia University, Taiwan, vol. 24(2), pages 134-166, June.
    9. Yoko Konishi & Yoshihiko Nishiyama, 2020. "Efficiency of the Retail Industry and Inelastic Supply," Advances in Decision Sciences, Asia University, Taiwan, vol. 24(2), pages 134-166, June.
    10. Federico Inchausti-Sintes, 2020. "A tourism growth model," Tourism Economics, , vol. 26(5), pages 746-763, August.
    11. Yusuke Adachi & Hikaru Ogawa & Masafumi Tsubuku, 2022. "Measuring productivity dynamics in Japan: a quantile approach," Empirical Economics, Springer, vol. 63(1), pages 201-242, July.
    12. Yoko KONISHI & Yoshihiko NISHIYAMA, 2016. "Efficiency of the Retail Industry: Case of inelastic supply functions," Discussion papers 16054, Research Institute of Economy, Trade and Industry (RIETI).
    13. Yusuke ADACHI & Hikaru OGAWA & Masafumi TSUBUKU, 2019. "Productivity Dynamics during Major Crises in Japan: A Quantile Approach," Discussion papers 19015, Research Institute of Economy, Trade and Industry (RIETI).
    14. Masayuki MORIKAWA, 2016. "Foreign Tourists and Capacity Utilization in the Accommodation Industry," Discussion papers 16064, Research Institute of Economy, Trade and Industry (RIETI).
    15. 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.
    16. MORIKAWA Masayuki, 2017. "Dispersion and Volatility of TFPQ in Service Industries," Discussion papers 17088, Research Institute of Economy, Trade and Industry (RIETI).

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