Distortions, Producer Dynamics, and Aggregate Productivity PDF Download

Author: Stephen Ayerst
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Author: José María Da-Rocha
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: Timothy Dunne
Publisher: University of Chicago Press
ISBN: 0226172570
Category : Business & Economics
Languages : en
Pages : 623

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The Census Bureau has recently begun releasing official statistics that measure the movements of firms in and out of business and workers in and out of jobs. The economic analyses in Producer Dynamics exploit this newly available data on establishments, firms, and workers, to address issues in industrial organization, labor, growth, macroeconomics, and international trade. This innovative volume brings together a group of renowned economists to probe topics such as firm dynamics across countries; patterns of employment dynamics; firm dynamics in nonmanufacturing industries such as retail, health services, and agriculture; employer-employee turnover from matched worker/firm data sets; and turnover in international markets. Producer Dynamics will serve as an invaluable reference to economists and policy makers seeking to understand the links between firms and workers, and the sources of economic dynamics, in the age of globalization.

Author: Kun Li
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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My dissertation uses theoretical tools and empirical methods to address substantive questions in the intersection of Macroeconomics and Industrial Organization. In particular, my research focuses on understanding the underlying forces that determine efficiency and distortions. In the first chapter, Privatization, Distortions, and Productivity, I ask that to what extent and through what channels privatization has contributed to the rapid growth of GDP and TFP in China's manufacturing sector. Privatization, like many other industrial policies, affects firms' output and productivity through a direct effect on productivity and an indirect effect on resource allocation. Understanding the consequences of privatization on both productivity and allocative efficiency is crucial for policy evaluation and subsequent reforms. To do so, I first develop a method to separately identify productivity and factor misallocations. This links to two distinct literatures. One is the macro literature on misallocation that use wedges or distortions to measure the deviation from firm's optimal scale. The other is the empirical IO literature to estimate production function using input and output, together with firm's optimal choices. I augment the empirical production function estimation framework by introducing wedges between marginal revenues and marginal costs as an additional unobserved variable that distorts the firms output away from their optimal input choices. And I show that how to identify and estimate productivity, distortions and parameters in production function. I then estimate the productivity and distortion effects of privatization. Finally I propose a decomposition method for aggregate productivity growth to explicitly account for the direct effect of privatization. Second, I discussed market frictions, specifically search and informational frictions that prevents efficient allocations in the labor markets. In Understanding Transitions using Directed Search with Mike Peters (UBC) and Steven Xu (HKU), we develop a directed search model to study worker transitions between jobs in the French labor market. In particular, the model we consider allows workers to have incomplete information about each other's' marketable characteristics (types) at the point where they make their search decisions. The theory provides a series of testable predictions about the relationship between the wage a worker receives at the job that he or she leaves, and the wage they get at their next job. The paper then uses data from the French DADS data set to study transitions in a variety of different labor markets in France in 2007, and compares these transitions to what is predicted by the theory. We find that the labor markets for skilled workers and industrial type of workers support more of our model. Third, I explore the return of productivity and distortions in scientific world. In Is Citation Behavior Biased? The Influence of Journal Editors with Bruno Biais (TSE) and Augustin Landier (TSE), we test the null hypothesis that the number of citations provides an unbiased measure of an article's scientific value. To do so, we exploit a shock that is exogenous to the scientific value of a paper, namely the ending time of editorial appointments of colleagues of a paper's author(s). We show that during the course of an editor's appointment, the citation rates of her papers in the journal she edits go up by 23 percentage points. During the same period, these articles don't have any significant citation premium at other journals. The citation premium fades away when the editor steps down. The same phenomenon applies to colleagues of the editor. This provides a counterexample to the null hypothesis that is both large in size and in the population of papers that is affected.

Author: Diego Restuccia
Publisher:
ISBN:
Category : Capital
Languages : en
Pages : 35

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We formulate a version of the growth model in which production is carried out by heterogeneous plants and calibrate it to US data. In the context of this model we argue that differences in the allocation of resources across heterogeneous plants may be an important factor in accounting for cross-country differences in output per capita. In particular, we show that policies which create heterogeneity in the prices faced by individual producers can lead to sizeable decreases in output and measured TFP in the range of 30 to 50 percent. We show that these effects can result from policies that do not rely on aggregate capital accumulation or aggregate relative price differences. More generally, the model can be used to generate differences in capital accumulation, relative prices, and measured TFP.

Author: Nasir Hossein Dad
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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What accounts for the large gaps in aggregate productivity across countries? I study the impact of equity frictions and policy distortions on aggregate productivity, investments in productivity and average firm size. I document that economies with deeper equity markets have higher productivity, invest more in productivity, have larger firms on average and exhibit lower elasticity of productivity to distortions. I build and calibrate a general equilibrium model with endogenous entry and productivity investments and find that equity frictions and policy distortions can account for up to 50 percent of TFP losses. I show that the equity frictions amplify the productivity effect of distortionary policies by affecting productivity investment channel, dampening aggregate productivity and economic growth. I decompose the impact of policy distortions through a static resource misallocation channel and dynamic implications through investments in productivity. I find that the dynamic effect is 3-fold larger than the impact through the resource misallocation in the US (benchmark) economy. I re-calibrate the quantitative model to Mexico and find that the dynamic effect is 5-fold larger than the impact through resource misallocation. I highlight a key interaction between equity frictions, policy distortions and investments in productivity. I show that policy distortions have a larger impact in economies with less developed equity markets and bulk of the effects are accounted for through distortion in productivity investments.

Author: Diego Restuccia
Publisher: UN
ISBN:
Category : Business & Economics
Languages : en
Pages : 44

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Gross domestic product (GDP) per capita in Latin America is low -- about one fifth of that of the United States. In addition, in the last five decades, Latin America has been unsuccessful to catch-up in wealth to the United States level while other countries at similar or lower stages of development have been successful. The failure to achieve higher levels of relative income embodies so called the development problem of Latin America. According to the publication, the bulk of the difference in GDP per capita between Latin America and the United States is explained by low GDP per worker and, especially, low total factor productivity (TFP) in Latin America.

Author: Carol Corrado
Publisher: University of Chicago Press
ISBN: 0226116174
Category : Business & Economics
Languages : en
Pages : 602

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As the accelerated technological advances of the past two decades continue to reshape the United States' economy, intangible assets and high-technology investments are taking larger roles. These developments have raised a number of concerns, such as: how do we measure intangible assets? Are we accurately appraising newer, high-technology capital? The answers to these questions have broad implications for the assessment of the economy's growth over the long term, for the pace of technological advancement in the economy, and for estimates of the nation's wealth. In Measuring Capital in the New Economy, Carol Corrado, John Haltiwanger, Daniel Sichel, and a host of distinguished collaborators offer new approaches for measuring capital in an economy that is increasingly dominated by high-technology capital and intangible assets. As the contributors show, high-tech capital and intangible assets affect the economy in ways that are notoriously difficult to appraise. In this detailed and thorough analysis of the problem and its solutions, the contributors study the nature of these relationships and provide guidance as to what factors should be included in calculations of different types of capital for economists, policymakers, and the financial and accounting communities alike.

Author: Laborde Debucquet, David
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Political Science
Languages : en
Pages : 53

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To understand the impacts of support programs on global emissions, this paper considers the impacts of domestic subsidies, price distortions at the border, and investments in emission-reducing technologies on global greenhouse gas (GHG) emissions from agriculture. In a step towards a full evaluation of the impacts, it uses a counterfactual global model scenario showing how much emissions from agricultural production would change if agricultural support were abolished worldwide. The analysis indicates that, without subsidies paid directly to farmers, output of some emission-intensive activities and agricultural emissions would be smaller. Without agricultural trade protection, however, emissions would be higher. This is partly because protection reduces global demand more than it increases global agricultural supply, and partly because some countries that currently tax agriculture have high emission intensities. Policies that directly reduce emission intensities yield much larger reductions in emissions than those that reduce emission intensities by increasing overall productivity because overall productivity growth creates a rebound effect by reducing product prices and expanding output. A key challenge is designing policy reforms that effectively reduce emissions without jeopardizing other key goals such as improving nutrition and reducing poverty. While the scenario analysis in this paper does not propose any particular policy reform, it does provide an important building block towards a full understanding the impacts of repurposed agricultural support measures on mitigation of greenhouse gas emissions and adaptation to climate change. That full analysis is being undertaken in subsequent work, which will also take account of land-use change and alternative forms of agricultural policy support to align objectives of food security, farmers’ income security, production efficiency and resilience, and environmental protection.

Author: Andrew Atkeson
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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What quantitative lessons can we learn from models of endogenous technical change through innovative investments by firms for the impact of changes in the economic environment on the dynamics of aggregate productivity in the short, medium, and long run? We present a unifying model that nests a number of canonical models in the literature and characterize their positive implications for the transitional dynamics of aggregate productivity and their welfare implications in terms of two sufficient statistics. We review the current state of measurement of these two sufficient statistics and discuss the range of positive and normative quantitative implications of our model for a wide array of counterfactual experiments, including the link between a decline in the entry rate of new firms and a slowdown in the growth of aggregate productivity given that measurement. We conclude with a summary of the lessons learned from our analysis to help direct future research aimed at building models of endogenous productivity growth useful for quantitative analysis.