Productive Structure and Procyclical Productivity
This paper considers the role of an input-output structure in propagating demand shocks. We build a model based on Basu [1995], where firms face menu costs. We show that taking into account an "in chain" productive structure allows to give a quantitative importance to the mechanism of factors reallocation giving rise to the procyclicality of total factor productivity in Basu [1995]. More precisely, to explain 20% of the procyclicality of TFP, Basu [1995] needs a markup around 60%, which is not supported by data. Here, we can have significant quantitative results with a moderate markup from 15% to 30%.
Year of publication: |
2002
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Authors: | BENHAMOUCHE, Zoubir |
Published in: |
Annales d'Economie et de Statistique. - École Nationale de la Statistique et de l'Admnistration Économique (ENSAE). - 2002, 65, p. 153-171
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Publisher: |
École Nationale de la Statistique et de l'Admnistration Économique (ENSAE) |
Saved in:
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