"This paper proposes an aggregative model of Total Factor Productivity (TFP) in the spirit of Houthakker (1955--1956). It considers a frictional labor market where production units are subject to idiosyncratic shocks and jobs are created and destroyed as in Mortensen and Pissarides (1994). An...

This paper proposes an aggregative model of Total Factor Productivity (TFP) in the spirit of Houthakker (1955-1956). It considers a frictional labor market where production units are subject to idiosyncratic shocks and jobs are created and destroyed as in Mortensen and Pissarides (1994). An...

In this paper we assess the role of reallocation of resources -- through shifts in market shares among incumbents as well as through firm entry and exit – to productivity. We are motivated by the evidence in all countries studied of heterogeneity of firms and substantial mobility of...

In this paper I estimate unobserved labor-generated knowledge spillovers within and among six large macroeconomic sectors covering the totality of the US civilian economy from 1948 to 1991. Unobserved spillovers are identified by observed TFP changes measured using Dale Jorgenson’s...

There exists significant dispersion in output prices between firms in many industries. As a consequence the value of output is not necessarily a good measure of the quantity of output. Estimation of production functions for these types of goods is thus challenging if quantities and prices of...

In markets where spatial competition is important, theory predicts increases in producer density (the number of producers per unit area in the local market) should lead to lower average prices. When producers are heterogeneous, this link exists for two reasons. First, the greater product...