THE AGGREGATE IMPLICATIONS OF MACHINE REPLACEMENT: THEORY AND EVIDENCE
John Haltiwanger and
Working Papers from U.S. Census Bureau, Center for Economic Studies
This paper studies 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. We also 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 our 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.
Keywords: CES; economic; research; micro; data; microdata; chief; economist (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Journal Article: The Aggregate Implications of Machine Replacement: Theory and Evidence (1993)
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:cen:wpaper:92-12
Access Statistics for this paper
More papers in Working Papers from U.S. Census Bureau, Center for Economic Studies Contact information at EDIRC.
Series data maintained by Erica Coates ().