Labor productivity: structural change and cyclical dynamics
Martin Neil Baily,
Eric Bartelsman () and
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Martin Neil Baily: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics
No 50, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics
A longstanding puzzle of empirical economics is that average labor productivity declines during recessions and increases during booms. This paper provides a framework to assess the empirical importance of competing hypotheses for explaining the observed procyclicality. For each competing hypothesis we derive the implications for cyclical productivity conditional on expectations of future demand and supply conditions. The novelty of the paper is that we exploit the tremendous heterogeneity in long-run structural changes across individual plants to identify the short-run sources of procyclical productivity.
Keywords: Labor productivity; Business cycles (search for similar items in EconPapers)
JEL-codes: E32 E24 (search for similar items in EconPapers)
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Journal Article: Labor Productivity: Structural Change And Cyclical Dynamics (2001)
Working Paper: Labor Productivity: Structural Change and Cyclical Dynamics (1998)
Working Paper: Labor productivity: structural change and cyclical dynamics (1996)
Working Paper: Labor Productivity: Structural Change and Cyclical Dynamics (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:1995-50
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