Open AccessPosted Content
The Cyclicality of Productivity Dispersion
Reads0
Chats0
TLDR
In this paper, the authors show that the dispersion of total factor productivity in U.S. durable manufacturing is greater in recessions than in booms, and that the resulting higher average productivity in durables endogenously translates into a lower average relative price of durables.Abstract:
Using plant-level data, I show that the dispersion of total factor productivity in U.S. durable manufacturing is greater in recessions than in booms. This cyclical property of productivity dispersion is much less pronounced in non-durable manufacturing. In durables, this phenomenon primarily reflects a relatively higher share of unproductive firms in a recession. In order to interpret these findings, I construct a business cycle model where production in durables requires a fixed input. In a boom, when the market price of this fixed input is high, only more productive firms enter and only more productive incumbents survive, which results in a more compressed productivity distribution. The resulting higher average productivity in durables endogenously translates into a lower average relative price of durables. Additionally, my model is consistent with the following business cycle facts: procyclical entry, procyclical aggregate total factor productivity, more procyclicality in durable than non-durable output, procyclical employment and countercyclicality in the relative price of durables and the cross section of stock returns.read more
Citations
More filters
Journal ArticleDOI
Fluctuations in Uncertainty
TL;DR: This article found that both macro and micro uncertainty appears to rise sharply in recessions and the types of exogenous shocks like wars, financial panics and oil price jumps that cause recessions appear to directly increase uncertainty, and uncertainty also appears to endogenously rise further during recessions.
Journal ArticleDOI
Fluctuations in Uncertainty
TL;DR: The authors found that both macro and micro uncertainty appears to rise sharply in recessions and the types of exogenous shocks like wars, financial panics and oil price jumps that cause recessions appear to directly increase uncertainty, and uncertainty also appears to endogenously rise further during recessions.
Journal ArticleDOI
Business cycles: A methodological approach
TL;DR: Acemoglu et al. as mentioned in this paper showed that business cycles are both less volatile and more synchronized with the world cycle in rich countries than in poor ones, and they developed two alternative explanations based on the idea that comparative advantage causes rich countries to specialize in industries that use new technologies operated by skilled workers, while poor countries specialize in traditional technologies operate by unskilled workers.
Journal ArticleDOI
Really Uncertain Business Cycles
TL;DR: In this article, uncertainty shocks are proposed as a new impulse driving business cycles and a dynamic stochastic general equilibrium model that extends the benchmark neoclassical growth model along two dimensions.
Dissertation
Have individual stocks become more volatile : an empirical exploration of idiosyncratic risk
TL;DR: In this paper, the authors examined the volatility of common stocks of the Athens Stock Exchange at the market, industry and firm level and found that all three measures show a countercyclical behaviour relative to GDP growth.
References
More filters
ReportDOI
A simple, positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix
Whitney K. Newey,Kenneth D. West +1 more
TL;DR: In this article, a simple method of calculating a heteroskedasticity and autocorrelation consistent covariance matrix that is positive semi-definite by construction is described.
Posted Content
A Simple, Positive Semi-Definite, Heteroskedasticity and Autocorrelationconsistent Covariance Matrix
TL;DR: In this article, a simple method of calculating a heteroskedasticity and autocorrelation consistent covariance matrix that is positive semi-definite by construction is described.
Posted Content
The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
TL;DR: In this paper, a dynamic industry model with heterogeneous firms is proposed to explain why international trade induces reallocations of resources among firms in an industry and contributes to a welfare gain.
Posted Content
The Dynamics Of Productivity In The Telecommunications Equipment Industry
George S Olley,Ariel Pakes +1 more
TL;DR: In this article, the authors developed an estimation algorithm that takes into account the relationship between productivity on the one hand, and both input demand and survival on the other, guided by a dynamic equilibrium model that generates the exit and input demand equations needed to correct for the simultaneity and selection problems.
Journal ArticleDOI
Estimating production functions using inputs to control for unobservables
James Levinsohn,Amil Petrin +1 more
TL;DR: Olley and Pakes as discussed by the authors show that when intermediate inputs (i.e., those inputs which are typically subtracted out in a value-added production function) can also solve this simultaneity problem, and discuss some potential benefits of expanding the choice set of proxies to include these inputs.