EconPapers    
Economics at your fingertips  
 

Aggregate Productivity Growth Decomposition: an Overview

Tetsushi Murao
Additional contact information
Tetsushi Murao: Associate Professor, Department of Economic Engineering, Kyushu University

Public Policy Review, 2017, vol. 13, issue 3, 269-286

Abstract: In this article, we review some recent developments of decomposition methods of the aggregate productivity growth by using firm/plant level datasets. These methods have been uncovering the sizable impacts of resource reallocation for the aggregate productivity growth. We categorize these methods into (i) reduced form decomposition methods (BHC-FHK decomposition, OP decomposition, and PL decomposition) and (ii) the structural decomposition method that is based on the structural estimation of an endogenous growth model (LM decomposition), and review each of them. By assessing the potential pros and cons of existing reduced form decomposition methods, we highlight features of the structural decomposition method. As an example of the use of the structural decomposition method, we introduce Murao and Nirei (2015) who quantitatively evaluate counterfactual deregulation of firm entry.

Keywords: aggregate productivity growth decomposition; resource reallocation; deregulation of entry (search for similar items in EconPapers)
JEL-codes: O43 O47 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://www.mof.go.jp/english/pri/publication/pp_review/fy2017/ppr13_03_03.pdf (application/pdf)

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:mof:journl:ppr13_03_03

Access Statistics for this article

More articles in Public Policy Review from Policy Research Institute, Ministry of Finance Japan Contact information at EDIRC.
Bibliographic data for series maintained by Policy Research Institute ().

 
Page updated 2018-07-28
Handle: RePEc:mof:journl:ppr13_03_03