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The Effect of Technology Choice on Automobile Assembly Plant Productivity

Johannes Van Biesebroeck ()

The Economic and Social Review, 2002, vol. 33, issue 1, 65-73

Abstract: Productivity growth is usually represented by a continuous shift of the production or cost function. In the automobile industry, there is evidence of a more discrete change in the technology. I estimate a structural model of production and technology choice, using a panel of US automobile assembly plants from 1963 to 1996. New decomposition results suggest that plant-level changes, as opposed to compositional effects, are the most important determinant of aggregate productivity growth.

Date: 2002
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Handle: RePEc:eso:journl:v:33:y:2002:i:1:p:65-73