The Missing Link: Technology, Investment, And Productivity

Laura Power

The Review of Economics and Statistics, 1998, vol. 80, issue 2, 300-313

Abstract: This paper examines the relationship between productivity, investment, and plant age for over 14,000 plants in the U.S. manufacturing sector for the period of 1972 to 1988. Productivity patterns vary significantly due to plant heterogeneity. Initially productivity increases with respect to plant age, but then it decreases. Productivity and growth in productivity are found to be systematically correlated with plant size and industry. However, there is virtually no observable relationship between investment and productivity or productivity growth. Overall the results indicate that plant heterogeneity and fixed effects are more important determinants of observable productivity patterns than sunk costs or capital reallocation. © 1998 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (106)

Downloads: (external link)
http://www.mitpressjournals.org/doi/pdf/10.1162/003465398557393 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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:tpr:restat:v:80:y:1998:i:2:p:300-313

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by The MIT Press ().