The Experts below are selected from a list of 29694 Experts worldwide ranked by ideXlab platform
Diego Restuccia - One of the best experts on this subject based on the ideXlab platform.
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Misallocation and Aggregate Productivity across time and space
Canadian Journal of Economics Revue canadienne d'économique, 2019Co-Authors: Diego RestucciaAbstract:Productivity is at the core of the large differences in income per capita across countries. What accounts for international Productivity differences? I discuss cross‐country differences in the allocation of inputs across heterogeneous production units—misallocation—as a potential factor in accounting for Aggregate Productivity. Policies and institutions generating misallocation are prevalent in poor and developing countries and may also be responsible for differences in the selection of operating producers and technology used, contributing substantially to Aggregate Productivity differences across countries. Mal‐allocation et productivite agregee dans l’espace et dans le temps. La productivite est au cœ ur des grandes differences de revenu per capita entre pays. Qu’est‐ce qui explique ces differences internationales dans la productivite? L’auteur examine les differences entre pays dans l’allocation des intrants entre unites heterogene de production – la mal‐allocation – en tant que source potentielle qui pourrait expliquer le niveau de productivite agregee. Les politiques et institutions engendrant la mal‐allocation prevalent dans les pays pauvres et en voie de developpement et peuvent aussi etre responsables des differences dans le processus de selection des producteurs pour les operations et des technologies utilisees – ce qui contribue de maniere substantielle aux differences de productivite agregee entre pays.
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The Role of Nonemployers in Business Dynamism and Aggregate Productivity
2019Co-Authors: Pedro Bento, Diego RestucciaAbstract:A well-documented observation of the U.S. economy in the last few decades has been the steady decline in the net entry rate of employer firms, a decline in business dynamism, suggesting a possible connection with the recent slowdown in Aggregate Productivity growth. We consider the role of nonemployers, businesses without paid employees, in business dynamism and Aggregate Productivity. Notwithstanding the decline in the growth of employer firms, we show that the total number of firms, which includes nonemployer businesses, has increased in the U.S. economy since the early 1980s. We interpret this trend, along with the evolution of the employment distribution across firms, through the lens of a standard theory of firm dynamics. The model implies that firm dynamics have contributed to an average annual growth rate of Aggregate Productivity of at least 0.26% since the early 1980s, over one quarter of the Productivity growth of 1% in the data. Further, our implied measure of Productivity growth moves closely over time with measured Productivity growth in the data.
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Misallocation and Aggregate Productivity across Time and Space
2018Co-Authors: Diego RestucciaAbstract:Productivity is at the core of the large differences in per-capita income across countries. What accounts for international Productivity differences? I discuss the possible cross-country differences in the allocation of inputs across heterogeneous production units---misallocation---as a factor in accounting for Aggregate Productivity. The policies and institutions generating misallocation are prevalent in poor and developing countries, and may also be responsible for differences in the selection and technology use of operating producers, contributing substantially to per-capita income differences across countries.
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The Role of the Structural Transformation in Aggregate Productivity
Quarterly Journal of Economics, 2010Co-Authors: Margarida Duarte, Diego RestucciaAbstract:We investigate the role of sectoral differences in labor Productivity in explaining the process of structural transformation - the secular reallocation of labor across sectors - and the time path of Aggregate Productivity across countries. Using a simple model of the structural transformation that is calibrated to the growth experience of the United States, we measure sectoral labor Productivity differences across countries. Productivity differences between rich and poor countries are large in agriculture and services and smaller in manufacturing. Moreover, over time, Productivity gaps have been substantially reduced in agriculture and industry but not nearly as much in services. In the model, these sectoral Productivity patterns generate implications that are broadly consistent with the cross-country evidence on the structural transformation, Aggregate Productivity paths, and relative prices. We show that Productivity catch-up in industry explains about 50 percent of the gains in Aggregate Productivity across countries, while low relative Productivity in services and the lack of catch-up explains all the experiences of slowdown, stagnation, and decline observed across countries.
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agriculture and Aggregate Productivity a quantitative cross country analysis
Journal of Monetary Economics, 2008Co-Authors: Diego Restuccia, Dennis Tao Yang, Xiaodong ZhuAbstract:Abstract A decomposition of Aggregate labor Productivity based on internationally comparable data reveals that a high share of employment and low labor Productivity in agriculture are mainly responsible for low Aggregate Productivity in poor countries. Using a two-sector general-equilibrium model, we show that differences in economy-wide Productivity, barriers to modern intermediate inputs in agriculture, and barriers in the labor market generate large cross-country differences in the share of employment and labor Productivity in agriculture. The model implies a factor difference of 10.8 in Aggregate labor Productivity between the richest and the poorest 5% of the countries in the world, leaving the unexplained factor at 3.2. Overall, this two-sector framework performs much better than a single-sector growth model in explaining observed differences in international Productivity.
Matthias Kehrig - One of the best experts on this subject based on the ideXlab platform.
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comment on computerizing industries and routinizing jobs explaining trends in Aggregate Productivity by sangmin aum sang yoon tim lee and yongseok shin
Journal of Monetary Economics, 2018Co-Authors: Matthias KehrigAbstract:Abstract Aum et al. (2018) quantify the impact of production complementarities and differential Productivity growth across occupations and sectors on the slowdown of Aggregate Productivity growth. This note expands their work to study substitutability between new computer equipment and labor in individual occupations as opposed to all occupations combined. Preliminary empirical evidence suggests (1) significantly different elasticities of substitution between computers and labor across occupations and (2) a strong correlation between Productivity growth of computers and labor in occupations where these two inputs are complementary. When they are substitutes, however, their Productivity growth rates appear uncorrelated. These findings have the potential to amplify or weaken the magnitude of the Aggregate Productivity slowdown explained by Aum et al. (2018) making their approach a promising avenue for future research.
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comment on computerizing industries and routinizing jobs explaining trends in Aggregate Productivity by sangmin aum sang yoon tim lee and yongseok shin
2018Co-Authors: Matthias KehrigAbstract:Aum, Lee, and Shin (2018) quantify the impact of production complementarities and differential Productivity growth across occupations and sectors on the slowdown of Aggregate Productivity growth. This note expands their work to study substitutability between new computer equipment and labor in individual occupations as opposed to all occupations combined. Preliminary empirical evidence suggests (1) significantly different elasticities of substitution between computers and labor across occupations and (2) a strong correlation between Productivity growth of computers and labor in occupations where these two inputs are complementary. When they are substitutes, however, their Productivity growth rates appear uncorrelated. These findings have the potential to amplify or weaken the magnitude of the Aggregate Productivity slowdown explained by Aum, Lee, and Shin (2018) making their approach a promising avenue for future research.
Margarida Duarte - One of the best experts on this subject based on the ideXlab platform.
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The Role of the Structural Transformation in Aggregate Productivity
Quarterly Journal of Economics, 2010Co-Authors: Margarida Duarte, Diego RestucciaAbstract:We investigate the role of sectoral differences in labor Productivity in explaining the process of structural transformation - the secular reallocation of labor across sectors - and the time path of Aggregate Productivity across countries. Using a simple model of the structural transformation that is calibrated to the growth experience of the United States, we measure sectoral labor Productivity differences across countries. Productivity differences between rich and poor countries are large in agriculture and services and smaller in manufacturing. Moreover, over time, Productivity gaps have been substantially reduced in agriculture and industry but not nearly as much in services. In the model, these sectoral Productivity patterns generate implications that are broadly consistent with the cross-country evidence on the structural transformation, Aggregate Productivity paths, and relative prices. We show that Productivity catch-up in industry explains about 50 percent of the gains in Aggregate Productivity across countries, while low relative Productivity in services and the lack of catch-up explains all the experiences of slowdown, stagnation, and decline observed across countries.
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The Role of the Structural Transformation in Aggregate Productivity
2007Co-Authors: Margarida Duarte, Diego RestucciaAbstract:We investigate the role of sectoral differences in labor Productivity and the process of structural transformation (the secular reallocation of labor across sectors) in accounting for the time path of Aggregate Productivity across countries. Using a simple model of the structural transformation that is calibrated to the growth experience of the United States, we measure sectoral labor Productivity differences across countries. These differences are large and systematic: labor Productivity differences between rich and poor countries are large in agriculture and services and smaller in manufacturing. When fed into the model, these sectoral labor Productivity differences and the structural transformation they produce account for more than 50 percent of the fast catch-up in Aggregate Productivity observed in less developed economies and all of the stagnation and decline observed in more developed economies in recent decades.
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The structural transformation and Aggregate Productivity in Portugal
Portuguese Economic Journal, 2006Co-Authors: Margarida Duarte, Diego RestucciaAbstract:We document the substantial process of structural transformation—the reallocation of labor between agriculture, manufacturing, and services—and Aggregate Productivity growth undergone by Portugal between 1956 and 1995. We assess the quantitative role of sectoral labor Productivity in accounting for these processes. We calibrate a model of the structural transformation to data for the United States and use the model to gain insight into the factors driving the structural transformation and Aggregate Productivity growth in Portugal. The model implies that Portugal features low and roughly constant relative Productivity in agriculture and services (around 22%) and a modest but growing relative Productivity in manufacturing (from 44 to 110%). We find that Productivity growth in manufacturing accounts for most of the reduction of the Aggregate Productivity gap with the United States and that a further closing of this gap can only be accomplished via improvements in the relative Productivity of services.
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The Structural Transformation and Aggregate Productivity in Portugal
2006Co-Authors: Margarida Duarte, Diego RestucciaAbstract:We document the substantial process of structural transformation -the reallocation of labor between agriculture, manufacturing, and services- and Aggregate Productivity growth undergone by Portugal between 1956 and 1995. In this paper, we assess the quantitative role of sectoral Productivity in accounting for these processes. We calibrate a model of the structural transformation to data for the United States and use the model to gain insight into the factors driving the structural transformation and Aggregate Productivity growth in Portugal. The model implies that Portugal features low and roughly constant relative Productivity in agriculture and services (around 22 percent) and a modest but growing relative Productivity in manufacturing (from 44 to 110 percent). We find that Productivity growth in manufacturing accounts for most of the reduction of the Aggregate Productivity gap with the United States and that further substantial improvements in relative Aggregate Productivity can only be accomplished via improvements in the relative Productivity of the service sector.
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The Role of the Structural Transformation in Aggregate Productivity
2006Co-Authors: Margarida Duarte, Diego RestucciaAbstract:In this paper, we document the reallocation of employment over time between agriculture, manufacturing, and services (the process of structural transformation) and the growth rate of sectoral labor Productivity across countries. We find that countries are going through a remarkably similar process of structural transformation, although with a substantial lag for some countries. We investigate whether sectoral differences in labor Productivity can account for differences in the process of structural transformation and Aggregate Productivity across countries. We consider a model of the structural transformation and calibrate it to the experience of the United States. We use the model to measure sectoral labor Productivity differences across countries and show that these differences are large and systematic both at a point in time and over time. In particular, labor Productivity differences are large in agriculture and services and smaller in manufacturing. We show that the implied sectoral labor Productivity differences help explain the process of structural transformation and Aggregate Productivity experiences across countries
Jens J. Krüger - One of the best experts on this subject based on the ideXlab platform.
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Intrasectoral structural change and Aggregate Productivity development: robust stochastic nonparametric frontier function estimates
Empirical Economics, 2013Co-Authors: Jens J. KrügerAbstract:This paper investigates the sources of total factor Productivity growth in the German manufacturing sector during 1981–1998. Decompositions of Aggregate Productivity growth are used to identify the effects of structural change and entry–exit on Aggregate Productivity growth. We find a substantial rise in Productivity growth after the German reunification. The bulk of this rise can be attributed to structural change and entry–exit. Two methodological refinements are implemented. The first refinement is the application of robust stochastic nonparametric approaches to frontier function analysis, and the second is the calculation of bootstrap confidence intervals for the components of the Productivity decompositions.
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Intra-Sectoral Structural Change and Aggregate Productivity Development. A Robust Stochastic Nonparametric Frontier Function Approach
2008Co-Authors: Jens J. KrügerAbstract:This paper investigates the sources of total factor Productivity growth in the German manu- facturing sector, 1981-1998. Decomposition formulae for Aggregate Productivity growth are used to identify the effects of structural change and entry-exit on Aggregate Productivity growth. Documented is a substantial rise of Productivity growth after the German reunifica- tion. The bulk of this rise can be attributed to structural change and entry-exit. Two methodo- logical refinements are implemented, the first is the application of a robust stochastic non- parametric approach to frontier function analysis and the second is the calculation of boot- strap confidence intervals for the components of the Productivity decompositions.
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Micro-Heterogeneity and Aggregate Productivity Development in the German Manufacturing Sector Results from a Decomposition Exercise
Journal of Evolutionary Economics, 2008Co-Authors: Uwe Cantner, Jens J. KrügerAbstract:A decomposition of Aggregate Productivity growth of German manufacturing firms that pertain to 11 different industries at a roughly two-digit level observed over the period 1981–1998 is performed. Productivity is measured by a nonparametric frontier function approach. The decompositions of Productivity allow for an explanation of the Aggregate outcomes by the quantification of the effect of structural change and the contributions of entering and exiting firms. Our results show that these forces drive Aggregate Productivity to a considerable extent. Remarkably, the large Productivity improvements after the German reunification are mainly driven by structural change.
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Micro-Heterogeneity and Aggregate Productivity Development in the German Manufacturing Sector - Results from a Decomposition Exercise
2006Co-Authors: Uwe Cantner, Jens J. KrügerAbstract:In this paper different formulae for the decomposition of Aggregate Productivity levels and changes are applied to a sample of German manufacturing firms that pertain to 11 different industries at a roughly two-digit level observed over the period 1981-1998. Productivity is measured by a nonparametric frontier function approach. The decompositions of Productivity allow for an explanation of the Aggregate outcomes by the quantification of the effect of structural change as well as the contributions from entering and exiting firms. Our results show that these forces drive Aggregate Productivity dynamics to a considerable extent. Especially the period after the German reunification is characterized by large Productivity improvements, mostly driven by structural change.
Liwei Cheng - One of the best experts on this subject based on the ideXlab platform.
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Aggregate Productivity losses from factor misallocation across Chinese manufacturing firms
Economic Systems, 2019Co-Authors: Xiaoyong Dai, Liwei ChengAbstract:Abstract Aggregate Productivity can be largely determined by how efficiently production factors are allocated across heterogeneous establishments. This paper estimates Aggregate Productivity losses from factor misallocation using a large sample of Chinese manufacturing firms. We analyze the institutional background and provide some stylized facts on factor misallocation of capital and labor in China. Using an approximation method based on the estimation of input gaps, we find that Aggregate Productivity losses reach an average rate of 11.18 percentage points per year. On average, capital and labor misallocation account for 6.73 and 4.45 percentage points, respectively. State ownership plays an important role in generating factor misallocation and Productivity losses. Our results imply that factor misallocation have become a major obstacle preventing China from moving to a more efficient economy.
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Market distortions and Aggregate Productivity: Evidence from Chinese energy enterprises
Energy Policy, 2016Co-Authors: Xiaoyong Dai, Liwei ChengAbstract:Market distortions can generate resource misallocations across heterogeneous firms and reduce Aggregate Productivity. This paper measures market distortions and Aggregate Productivity growth in China's energy sector. We use the wedge between output elasticities and factor shares in revenues to recover a measure of firm-level market distortions. Using data on a large sample of Chinese energy enterprises from 1999 to 2007, our estimations provide strong evidence of the existence of both factor and product market distortions within and across China's various energy industries. The Productivity aggregation and decomposition results demonstrate that the estimated Aggregate Productivity growth (APG) is, on average, 2.595% points per year, of which technological change, resource reallocation, and firm entries and exits account for 1.981, 0.068, and 0.546% points, respectively. The weak contributions of resource reallocation and firm turnover to APG are also found in energy sub-industries, except in the coal industry. Our research suggests that China's energy sector has major potential for Productivity gains from resource reallocation through the reduction of market distortions.
