An average machine lags in terms of productivity and technological advancement behind a cutting-edge machine. This lag … production in the long term due to a higher future productivity level …

This paper contributes to the productivity literature by using results from firm-level productivity studies to improve … forecasts of macro-level productivity growth. The paper employs current research methods on estimating firm-level productivity … to build times-series components that capture the joint dynamics of the firm-level productivity and size distributions …