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Why does productivity fall during a financial crisis? The case of Argentina 2001

Mark Wright () and Guido Sandleris

No 219, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: Output falls during emerging market financial crises are large. These declines are not explained by declines in the supply of factors of production, and are hence measured as declines in total factor productivity. Why does productivity decline during a crisis? This paper uses establishment level data for Argentina during the financial crisis that began at the end of 2000 to assess the ability of some common theories of the decline in productivity.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:219

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