Susanto Basu

TL;DR: In this article, the authors discuss implications of heterogencity for macroeconomic modeling: a one-sector macroeconomic model that ignores heterogeneity may sometimes require firm level parameters, but at other times the model may require the “biased” aggregate parameters.

TL;DR: In this paper, the authors construct a measure of aggregate technology change, controlling for varying utilization of capital and labor, non- constant returns and imperfect competition, and aggregation effects, and find that when technology improves, input use and non-resident investment fall sharply.

TL;DR: In this article, the authors present a model of growth and technology transfer based on the idea that technologies are specific to particular combinations of inputs, and argue that a model with appropriate technology and technology diffusion is more appealing, and has more realistic predictions for long-run convergence and growth, than either the standard neoclassical model or simple endogenous-growth models.

TL;DR: This paper found that the true growth of variable labor and capital inputs is, on average, almost twice the measured change in the capital stock or labor hours, and that half of that is caused by the presence of overhead inputs in production; the rest is due to cyclical factor utilization.

TL;DR: In this paper, the relative importance of cyclical fluctuations in labor and capital utilization, increasing returns to scale, and technology shocks as explanations for procyclical productivity was investigated, and it was shown that cyclical factor utilization is very important.