The Aggregate Implications of Machine Replacement: Theory and Evidence
Russell Cooper and
American Economic Review, 1993, vol. 83, issue 3, 360-82
The authors study an economy in which producers incur resource costs to replace depreciated machines. The process of costly replacement and depreciation creates endogenous fluctuations in productivity, employment, and output of a single producer. The authors explore the spillover effects of machine replacement on other sectors of the economy and provide conditions for synchronized machine replacement by multiple independent producers. The implications of their model are generally consistent with observed monthly output, employment, and productivity fluctuations in automobile plants. Synchronization of retooling across plants within the auto industry is widespread, so that the fluctuations observed at the plant level have aggregate implications. Copyright 1993 by American Economic Association.
References: Add references at CitEc
Citations View citations in EconPapers (86) Track citations by RSS feed
Downloads: (external link)
http://links.jstor.org/sici?sici=0002-8282%2819930 ... O%3B2-B&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
Working Paper: THE AGGREGATE IMPLICATIONS OF MACHINE REPLACEMENT: THEORY AND EVIDENCE (1992)
Working Paper: The Aggregate Implications of Machine Replacement: Theory and Evidence (1990)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:83:y:1993:i:3:p:360-82
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Pinelopi Koujianou Goldberg
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Series data maintained by Jane Voros ().