EconPapers    
Economics at your fingertips  
 

From micro to macro: a note on the analysis of aggregate productivity dynamics using firm-level data

Daniel Dias and Carlos Marques

Journal of Productivity Analysis, 2021, vol. 56, issue 1, No 1, 14 pages

Abstract: Abstract In the empirical literature, the analysis of aggregate productivity dynamics using firm-level productivity has mostly been based on changes in the mean of log-productivity. This paper shows that there can be substantial quantitative and qualitative differences in the results relative to when the analysis is based on changes in the mean of productivity, and discusses the circumstances under which such differences are likely to happen. We use firm-level data for Portugal for the period 2006–2015 to illustrate the point. When the mean of productivity is used, we estimate that TFP and labor productivity for the whole economy increased by 17.7 percent and 5.2 percent, respectively, over this period. But, when the mean of log-productivity is used, these two productivity measures decline by 4.3 percent and 1.8 percent, respectively. Similarly disparate results are obtained for productivity decompositions regarding the contributions for productivity growth of surviving, entering and exiting firms.

Keywords: D24; E32; L25; O47; Jensen’s inequality; productivity decomposition; geometric mean (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s11123-021-00601-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: From Micro to Macro: A Note on the Analysis of Aggregate Productivity Dynamics Using Firm-Level Data (2021) Downloads
Working Paper: From Micro to Macro: A Note on the Analysis of Aggregate Productivity Dynamics Using Firm-Level Data (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:56:y:2021:i:1:d:10.1007_s11123-021-00601-4

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

DOI: 10.1007/s11123-021-00601-4

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).

 
Page updated 2024-12-28
Handle: RePEc:kap:jproda:v:56:y:2021:i:1:d:10.1007_s11123-021-00601-4