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Standard growth accounting exercises find large cross--country differences in aggregate TFP. Here we ask whether specific sectors are driving these differences, and, if this is the case, which these problem sectors are. We argue that to answer these questions we need to consider four sectors. In...
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the economy's population size. A more elastic demand lowers the resistance to technology adoption because the drop in the … price of the industry's output that follows the adoption of a cost-saving technology is associated with a larger increase in …
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We study the impact of three different types of policy on the sectoral composition of employment and on the overall level of market employment: (1) regulations that reduce the efficiency of market production, such as administrative burdens on companies, (2) income transfers across population...
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We study the interactions between aggregate growth and structural change. Our economy has many sectors characterized by different rates of total factor productivity growth and producing differentiated products. All sectors produce consumption goods but one sector, labelled manufacturing, also...
Persistent link: https://www.econbiz.de/10005069477
This paper presents an analytically tractable model in which firm dynamics is driven by technology adoption and fixed … costs. Existing firms experience idiosyncratic changes in technology. On average, the rate of technological progress among … existing firms is slower than that of the frontier technology, and this leads to firms exiting eventually. The stationary …
Persistent link: https://www.econbiz.de/10005027282