PROCYCLICAL MULTIFACTOR PRODUCTIVITY - TESTS OF THE CURRENT THEORIES

Authors
Citation
S. Jun, PROCYCLICAL MULTIFACTOR PRODUCTIVITY - TESTS OF THE CURRENT THEORIES, Journal of money, credit and banking, 30(1), 1998, pp. 51-63
Citations number
21
Categorie Soggetti
Business Finance
ISSN journal
00222879
Volume
30
Issue
1
Year of publication
1998
Pages
51 - 63
Database
ISI
SICI code
0022-2879(1998)30:1<51:PMP-TO>2.0.ZU;2-8
Abstract
This paper conducts various tests of four hypotheses to account for pr ocyclical multifactor productivity. The hypotheses include imperfect c ompetition, increasing returns to scale, labor hoarding, and thick mar ket externalities. The test results provide strong evidence for imperf ect competition and increasing returns, and weak evidence for labor ho arding and thick market externalities. However, the markup and returns -to-scale parameter estimates are much smaller than those noted in pre vious research. This difference results from the use here of gross out put and intermediate inputs as opposed to the use in previous research of value added and primary inputs.