Cyclical Productivity in Europe and the United States, Evaluating the Evidence on Returns to Scale and Input Utilization

Robert Inklaar

No 5501, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper studies procyclical productivity growth at the industry level in the U.S. and in three European countries (France, Germany and the Netherlands). Industry-specific demand-side instruments are used to examine the prevalence of non-constant returns to scale and unmeasured input utilization. For the aggregate U.S. economy, unmeasured input utilization seems to explain procyclical productivity. However, this correction still leaves one in three U.S. industries with procyclical productivity. This failure of the model can also be seen in Europe and is mostly concentrated in services industries.

Keywords: Cyclical productivity; Input utilizations; Returns to scale; Instrumental variables (search for similar items in EconPapers)
JEL-codes: D24 E32 O47 (search for similar items in EconPapers)
Date: 2006-02
New Economics Papers: this item is included in nep-eff and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://cepr.org/publications/DP5501 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Cyclical Productivity in Europe and the United States: Evaluating the Evidence on Returns to Scale and Input Utilization (2007)
Working Paper: Cyclical productivity in Europe and the United States, evaluating the evidence on returns to scale and input utilization (2005)
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:cpr:ceprdp:5501

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP5501

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().