Productivity growth in the 1990s: technology, utilization, or adjustment
Susanto Basu (),
John Fernald () and
No WP-01-04, Working Paper Series from Federal Reserve Bank of Chicago
Measured productivity growth increased substantially during the second half of the 1990s. This paper examines whether this increase owes to an increase in the rate of technological change or whether it can be explained by non-technological factors relating to factor utilization, factor accumulation, or returns to scale. It finds that the recent increase in productivity growth does appear to arise from an increase in technological change. Cyclical utilization raised measured productivity growth relative to technology growth in the first part of the expansion, but lowered it subsequently. Factor adjustment leads to a steady-state understatement of technology growth by measured productivity growth. The understatement was greater in the second half of the expansion than the first. Changes in the distribution of inputs across industries with different returns to scale lead to a modest understatement in the growth in technology. Although the increase technological change is most pronounced in durable manufacturing, technological change also increased outside of manufacturing.
Keywords: Productivity; Technology; Manufactures (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-eff, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34) Track citations by RSS feed
Downloads: (external link)
http://www.chicagofed.org/digital_assets/publicati ... s/2001/Wp2001-04.pdf (application/pdf)
Journal Article: Productivity growth in the 1990s: technology, utilization, or adjustment? (2001)
Working Paper: Productivity Growth in the 1990s: Technology, Utilization, or Adjustment? (2001)
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:fip:fedhwp:wp-01-04
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Paper Series from Federal Reserve Bank of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by Lauren Wiese ().