Interpreting the procyclical productivity of manufacturing sectors: external effects or labor hoarding?
This paper investigates whether procyclical productivity is due to cyclical variations in the rate of utilization of labor or to technological externalities. By looking at the relation between sectoral productivity and the level of aggregate activity, empirical evidence is presented to distinguish the two hypotheses. Analysis of two-digit U.S. manufacturing industries shows that sectoral productivity is more closely related to the rate of change of aggregate activity than to its level. This result is consistent with the interpretation that cyclical productivity is due to cyclical variations in the rate of utilization of labor, which responds to expected future industry conditions. Aggregate variables in production-function regressions have therefore the role of forecasting variables for future industry conditions. Copyright 1997 by Ohio State University Press.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1994|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.chicagofed.org/
More information through EDIRC
|Order Information:|| Web: http://www.chicagofed.org/webpages/publications/print_publication_order_form.cfm Email: |
When requesting a correction, please mention this item's handle: RePEc:fip:fedhma:94-9. 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: (Bernie Flores)
If references are entirely missing, you can add them using this form.