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Mind the Gap: A Comment on Aggregate Productivity and Technology

  • M. Ali Choudhary

    (University of Surrey)

  • Vasco J. Gabriel

    (University of Surrey)

This paper reconsiders the empirical results of Basu and Fernald (European Economics Review, 2002) which suggests a significant and persistent gap between the aggregate productivity and technology levels for the US private business sector. We we control for capacity utilisation, time-varying markup and use a superior system estimator, the profile of the gap is shown to change considerably.

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File URL: http://www.fahs.surrey.ac.uk/economics/discussion_papers/2006/DP13-06.pdf
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Paper provided by School of Economics, University of Surrey in its series School of Economics Discussion Papers with number 1306.

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Length: 11 pages
Date of creation: Aug 2006
Date of revision:
Handle: RePEc:sur:surrec:1306
Contact details of provider: Postal: Guildford, Surrey GU2 5XH
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Web page: http://www.surrey.ac.uk/economics/
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  1. Susanto Basu & John Fernald & Miles Kimball, 2004. "Are Technology Improvements Contractionary?," NBER Working Papers 10592, National Bureau of Economic Research, Inc.
  2. Burnside, Craig & Eichenbaum, Martin & Rebelo, Sérgio, 1995. "Capital Utilization and Returns to Scale," CEPR Discussion Papers 1221, C.E.P.R. Discussion Papers.
  3. Basu, Susanto & Fernald, John G., 2002. "Aggregate productivity and aggregate technology," European Economic Review, Elsevier, vol. 46(6), pages 963-991, June.
  4. Domowitz, Ian & Hubbard, R Glenn & Petersen, Bruce C, 1988. "Market Structure and Cyclical Fluctuations in U.S. Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 55-66, February.
  5. Caballero, R.J. & Lyons, R.K., 1991. "External Effects in U.S. Procyclical Productivity," Papers 91-19, Columbia - Graduate School of Business.
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