Procyclical Productivity in Manufacturing

We study the cyclical behavior of labor productivity in eighty industries of the Chilean manufacturing sector in the 1979-2001 period. We find that labor productivity at the sector-level is procyclical but it is a-cyclical when using aggregate data. We provide an analytical and empirical explanation...

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Autores principales:	NAVARRO,LUCAS, SOTO,RAIMUNDO
Lenguaje:	English
Publicado:	Instituto de Economía, Pontificia Universidad Católica de Chile 2006
Materias:	Productivity Procyclical Manufacturing Aggregation Bias
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212006000100007
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spelling	oai:scielo:S0717-682120060001000072006-10-13Procyclical Productivity in ManufacturingNAVARRO,LUCASSOTO,RAIMUNDO Productivity Procyclical Manufacturing Aggregation Bias We study the cyclical behavior of labor productivity in eighty industries of the Chilean manufacturing sector in the 1979-2001 period. We find that labor productivity at the sector-level is procyclical but it is a-cyclical when using aggregate data. We provide an analytical and empirical explanation for this divergence. We also use an econometric model to quantify the determinants of productivity. The results indicate that technology shocks account for one half of productivity growth, thus supporting the supply shocks hypothesis as the main source of business cycles in Chile. The other 50% of the productivity changes is explained by reallocation of resources from less to more productive sectors as well as the presence of increasing returns. Variations in factor utilization were insignificantinfo:eu-repo/semantics/openAccessInstituto de Economía, Pontificia Universidad Católica de ChileCuadernos de economía v.43 n.127 20062006-05-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212006000100007en10.4067/S0717-68212006000100007
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Productivity Procyclical Manufacturing Aggregation Bias
spellingShingle	Productivity Procyclical Manufacturing Aggregation Bias NAVARRO,LUCAS SOTO,RAIMUNDO Procyclical Productivity in Manufacturing
description	We study the cyclical behavior of labor productivity in eighty industries of the Chilean manufacturing sector in the 1979-2001 period. We find that labor productivity at the sector-level is procyclical but it is a-cyclical when using aggregate data. We provide an analytical and empirical explanation for this divergence. We also use an econometric model to quantify the determinants of productivity. The results indicate that technology shocks account for one half of productivity growth, thus supporting the supply shocks hypothesis as the main source of business cycles in Chile. The other 50% of the productivity changes is explained by reallocation of resources from less to more productive sectors as well as the presence of increasing returns. Variations in factor utilization were insignificant
author	NAVARRO,LUCAS SOTO,RAIMUNDO
author_facet	NAVARRO,LUCAS SOTO,RAIMUNDO
author_sort	NAVARRO,LUCAS
title	Procyclical Productivity in Manufacturing
title_short	Procyclical Productivity in Manufacturing
title_full	Procyclical Productivity in Manufacturing
title_fullStr	Procyclical Productivity in Manufacturing
title_full_unstemmed	Procyclical Productivity in Manufacturing
title_sort	procyclical productivity in manufacturing
publisher	Instituto de Economía, Pontificia Universidad Católica de Chile
publishDate	2006
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212006000100007
work_keys_str_mv	AT navarrolucas procyclicalproductivityinmanufacturing AT sotoraimundo procyclicalproductivityinmanufacturing
_version_	1718442403362242560

Procyclical Productivity in Manufacturing

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