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I discuss reasons why manufacturing productivity statistics should be interpreted with caution in light of the recent growth of domestic and foreign outsourcing and offshoring. First, outsourcing and offshoring are poorly measured in U.S. statistics, and poor measurement may impart a significant...
Persistent link: https://www.econbiz.de/10003427043
Because of gaps in existing surveys and methodological problems with the computation of productivity measures, outsourcing and offshoring result in an overstatement of labor productivity and multifactor productivity growth in manufacturing. Although it is impossible to fully characterize the...
Persistent link: https://www.econbiz.de/10012726920
concavity conditions of the cost function. We focus on the 'bubble period' in the 1980s when land was in great demand for … reasons related to both production and speculation, and land prices soared. By estimating the translog cost function with land … constraints and large adjustments of employment. We also demonstrate that elasticities of substitution between land and other …
Persistent link: https://www.econbiz.de/10010332199
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We address the long standing question of whether production factors are paid their marginal products. We propose a new approach that circumvents the need to specify production functions and to compare marginal products to factor payments. Our approach is based on a simple equation that directly...
Persistent link: https://www.econbiz.de/10009519880
We argue that the US trade and industry sector has experienced several unsustainable sectoral processes, including (i) a fall in the trade balance in machinery and equipment and high-tech (HT) industries, (ii) a rise in import multipliers in machinery and equipment and HT industries, (iii) a...
Persistent link: https://www.econbiz.de/10014531235
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We estimate direct and indirect effects of total factor productivity growth in manufacturing on US workers' earnings, housing costs, and purchasing power. Drawing on four alternative instrumental variables, we consistently find that when a city experiences productivity gains in manufacturing,...
Persistent link: https://www.econbiz.de/10012870205
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This study uses firm level data from two detailed surveys of Italian manufacturing firms to study the relationship between R&D expenditures and productivity growth. The analysis considers the different contributions of various forms of R&D (product, process, internal, external in collaboration...
Persistent link: https://www.econbiz.de/10011325067