1 option
Utilization-Adjusted TFP Across Countries: Measurement and Implications for International Comovement / Zhen Huo, Andrei A. Levchenko, Nitya Pandalai-Nayar.
- Format:
- Book
- Author/Creator:
- Huo, Zhen.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26803.
- NBER working paper series no. w26803
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Utilization-Adjusted TFP Across Countries
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- This paper develops estimates of TFP growth adjusted for movements in unobserved factor utilization for a panel of 29 countries and up to 37 years. When factor utilization changes are unobserved, the commonly used Solow residual mismeasures actual changes in TFP. We use a general equilibrium dynamic multi-country multi-sector model to derive a production function estimating equation that corrects for unobserved factor usage. We compare the properties of utilization-adjusted TFP series to the standard Solow residual, and quantify the roles of both TFP and utilization for international business cycle comovement. Utilization-adjusted TFP is virtually uncorrelated across countries, and does not generate much GDP comovement through its propagation. Shocks to factor utilization can more successfully account for international co-movement.
- Notes:
- Print version record
- February 2020.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.