The Dynamics of Productivity in the Telecommunications Equipment Industry
G. Steven Olley,Ariel Pakes +1 more
TLDR
In this paper, an empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity.Abstract:
Technological change and deregulation have caused a major restructuring of the telecommunications equipment industry over the last two decades. Our empirical focus is on estimating the parameters of a production function for the equipment industry, and then using those estimates to analyze the evolution of plant-level productivity. The restructuring involved significant entry and exit and large changes in the sizes of incumbents. Firms' choices on whether to liquidate, and on input quantities should they continue, depended on their productivity. This generates a selection and a simultaneity problem when estimating production functions. Our theoretical focus is on providing an estimation algorithm which takes explicit account of these issues. We find that our algorithm produces markedly different and more plausible estimates of production function coefficients than do traditional estimation procedures. Using our estimates we find increases in the rate of aggregate productivity growth after deregulation. Since we have plant-level data we can introduce indices which delve deeper into how this productivity growth occurred. These indices indicate that productivity increases were primarily a result of a reallocation of capital towards more productive establishments.read more
Citations
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Exports and Wages: Rent Sharing, Workforce Composition, or Returns to Skills?
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TL;DR: This paper used linked employer-employee data from Italy to explore the relationship between exports and wages and found that exporting firms both pay a wage premium above what their workers would earn in the outside labor market and employ workers whose skills command a higher price after the devaluation.
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New Plant Venture Performance Differences Among Incumbent, Diversifying, and Entrepreneurial Firms: The Impact of Industry Learning Intensity
TL;DR: It is found that incumbents and diversifying entrants establish significantly more productive new plants than de novo entrants, and that this advantage significantly increases with the importance of learning by doing in an industry (industry learning intensity).
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The Dynamics of Productivity: A Decompostion Approach Using Distribution Functions
José C. Fariñas,Sonia Ruano +1 more
TL;DR: In this article, the authors use a micro panel data set of Spanish manufacturing firms to measure the contributions of continuing firms and turnover to total factor productivity growth over the period 1990-1997.
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IT use, productivity, and market power in banking
Michael Koetter,Felix Noth +1 more
TL;DR: In this paper, the use of information technology (IT) contributes to bank output, and how IT-augmented bank productivity relates to differences in market power, and the results hold across a range of bank output definitions and productivity estimation methods.
Posted Content
RD and Productivity in the UK: evidence from firm-level data in the 1990s.
TL;DR: The UK's business RD (BERD) to GDP ratio is low compared to other leading economies, and the ratio has slowly declined over the 1990s as mentioned in this paper, and the returns to RD have been relatively stable.
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