Are Apparent Productive Spillovers a Figment of Specification Error? / Susanto Basu, John G. Fernald.

Format:

Book

Author/Creator:

Basu, Susanto, author.

Fernald, John G., author.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w5073

NBER working paper series no. w5073

Language:

English

Subjects (All):

Manufacturing industries.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1995.

Summary:

Using data on gross output for two-digit manufacturing industries, we find that an increase in the output of one manufacturing sector has little or no significant effect on the productivity of other sectors. Using value-added data, however, we confirm the results of previous studies which find that output spillovers instead appear large. We provide an explanation for these differences, showing why, with imperfect competition, the use of value-added data leads to a spurious finding of large apparent external effects.

Notes:

Print version record

March 1995.