Mind The Gap: A Comment On Aggregate Productivity And Technology

Topics:
Organization
Tags:
Finance,
Financial Services,
Operational Accounting,
University Of Surrey,
Utilization
Source:
University of Surrey

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Overview: This paper reconsiders the empirical results of Basu and Fernald. When capacity utilization and time varying markup were controlled and a superior system estimator was used, the gap between the aggregate productivity and technology is shown to change considerably. This paper revisits the empirical findings of the PTW by: Accounting for labour utilization and cyclical variations in the product markets; and using a more efficient estimation method. While the former points feature in BF's (Basu and Fernald) discussions as possible of explaining their findings.

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Format: PDF | Size: 199KB | Date: May 2006 | Pages: 9

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