PRODUCTIVITY DYNAMICS - US MANUFACTURING PLANTS, 1972-1986

This paper presents an analysis of the dynamics of total factor produc tivity measures for large plants in SICs 35, 36 and 38. Several TFP me asures, derived from production functions and Solow type residuals, ar e computed and their behavior over time is compared, using non-paramet ric tools. Aggregate TFP, which has grown substantially over the time period, is compared with average plant level TFP, which has declined o r remained flat, Using transition matrices, the persistence of plant p roductivity is examined, and it is shown how the transition probabilit ies vary by industry, plant age, and other characteristics.