Short and Long Run Externalities

Eric Bartelsman, Ricardo Caballero () and Richard Lyons ()

No 3810, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we build upon previous work on external economies in manufacturing [Caballero and Lyons (1989, 1990)] by providing new evidence helpful for discriminating between different types of externalities. We investigate four-digit level input-output relationships and find that, over shorter horizons, the linkage between an industry and its customers is the most important factor in the transmission of externalities. This suggests that transactions externalities accruing primarily to the seller, and/or activity-driven demand externalities are significant for explaining the short-run behavior of measured total factor productivity. Over longer horizons. on the other hand, it is the activity level of suppliers that is more important. This suggests that external effects are also operating through intermediate goods linkages.

Date: 1991-08
Note: ITI EFG IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published as "Customer and Supplier Driven Externalities" American Economic Review, Sept 1994, vol 84, No 4, pp 1075-1084

Downloads: (external link)
http://www.nber.org/papers/w3810.pdf (application/pdf)

Related works:
Working Paper: Short and Long Run Externalities (1991)
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:nbr:nberwo:3810

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w3810

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().