Found 12 article(s) for author 'Productivity'

Productivity and Selection of Human Capital with Machine Learning

Productivity and Selection of Human Capital with Machine Learning. Michael Luca, Sendhil Mullainathan, 2016, Paper. “Economists have become increasingly interested in studying the nature of production functions in social policy applications, Y = f(L, K), with the goal of improving productivity. For example what is the effect on student learning from hiring an additional teacher, ∂Y/∂L, in theory (Lazear, 2001) or in practice (Krueger, 2003)? What is the effect of hiring one more police officer (Levitt, 1997)?Link

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The Impact of Information Technology on Postwar US Economic Growth

The Impact of Information Technology on Postwar US Economic Growth. Dale Jorgenson, November 28, 2015, Paper. “We provide detailed information on the crucial role of information technology in the postwar growth of the U.S. economy, from the development of the telecommunications services and the telecommunications equipment industries through the successful commercialization of semiconductor technology and the ongoing shift to cloud-based IT services. Our industry-level data set reveals that productivity gains over the postwar period originated disproportionally in industries that produce IT, but the replication of established technologies through growth of capital and labor inputs explains by far the largest proportion of U.S. economic growth. We find that the substantial growth deceleration during the Great Recession was driven by modestly negative aggregate productivity growth, but that only a minor portion of the drop in the growth rate was due to the IT-producing industries.Link

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Capital Allocation and Productivity in South Europe

Capital Allocation and Productivity in South Europe. Gita Gopinath, July 2015, Paper, “Following the introduction of the euro in 1999, countries in the South experienced large capital inflows and low productivity. We use data for manufacturing firms in Spain to document a significant increase in the dispersion of the return to capital across firms, a stable dispersion of the return to labor across firms, and a significant increase in productivity losses from misallocation over time. We develop a model of heterogenous firms facing financial frictions and investment adjustment costs. The model is consistent with cross-sectional and time-series patterns in size, productivity, capital returns, investment, and debt observed in production and balance sheet data.Link

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Heterogeneous Firms and Trade

Heterogeneous Firms and Trade. Marc Melitz, 2015, Paper. “This chapter reviews the new approach to international trade based on firm heterogeneity in differentiated product markets. This approach explains a variety of features exhibited in disaggregated trade data, including the higher productivity of exporters relative to non-exporters, within-industry reallocations of resources following trade liberalization, and patterns of trade participation across firms and destination markets. Accounting for these empirical patterns reveals new mechanisms through which the aggregate…”  Link verified September 24, 2014

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It’s Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the U.S.

It’s Where You Work: Increases in Earnings Dispersion across Establishments and Individuals in the U.S. Richard Freeman, August 2014, Paper. “This paper links data on establishments and individuals to analyze the role of establishments in the increase in inequality that has become a central topic in economic analysis and policy debate. It decomposes changes in the variance of log earnings among individuals into the part due to changes in earnings among establishments and the part due to changes in earnings within-establishments and finds that much of the 1970s-2010s increase in earnings inequality results from increased dispersion of the earnings among the establishments where individuals work. It also shows that the divergence of establishment earnings occurred within and across industries and was associated with increased variance of revenues per worker. Our results direct attention to the fundamental role of establishment-level pay setting and economic adjustments in earnings inequality.Link

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Matching, Sorting, and the Distributional Effects of International Trade

Matching, Sorting, and the Distributional Effects of International Trade. Elhanan Helpman, August 2014, Paper, “We study the distributional consequences of trade in a world with two industries and two heterogeneous factors of production. Productivity in each production unit reáects the ability of the manager and the abilities of the workers, with complementarity between the two. We begin by examining the forces that govern the sorting of worker and manager types to industries, and the matching of workers and managers within industries. We then consider how changes in relative output prices generated by changes in the trading environment a§ect sorting, matching, and the distributions of wages and salaries. We distinguish three mechanisms that govern the e§ects of trade on income distribution: trade increases demand for all types of the factor used intensively in the export sector; trade beneÖts those types of a factor that have a comparative advantage in the export sector; and trade induces a re-matching of workers and managers within both sectors, which beneÖts the more able types of the factor that achieves improved matches.Link

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Do Prices Determine Vertical Integration? Evidence from around the World

Do Prices Determine Vertical Integration? Evidence from around the World. Laura Alfaro, June 2014, Paper. “Despite its pertinence for policy, the role of market forces in determining firms’ integration decisions has received relatively little attention in development economics. This paper focuses on the relationship between product prices and vertical integration: while the IO literature has focused on how integration affects prices, we offer evidence that prices can affect integration. Many theories in organizational economics and industrial organization posit that integration, while costly, increases productivity…” Link

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Missing Gains from Trade?

Missing Gains from Trade? Marc Melitz, February 12, 2014, Paper. “The theoretical result that there are welfare gains from trade is a central tenet of international economics. In a class of trade models that satisfy a “gravity equation,”the welfare gains from trade can be computed using only the open economy domestic trade share and the elasticity of trade with respect to variable trade costs. The measured welfare gains from trade from this quantitative approach are typically relatively modest. In this paper, we suggest a channel for welfare gains that this quantitative approach typically abstracts from…” Link Verified October 13, 2014

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Matching and Sorting in a Global Economy

Matching and Sorting in a Global Economy. Elhanan Helpman, September 2013, Paper. “We develop a neoclassical trade model with heterogeneous factors of production. We consider a world with two factors, labor and “managers,” each with a distribution of ability levels. Production combines a manager of some type with a group of workers. The output of a unit depends on the types of the two factors, with complementarity between them, while exhibiting diminishing returns to the number of workers…” Link Verified October 12, 2014

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Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion?

Neighbors and the Evolution of the Comparative Advantage of Nations: Evidence of International Knowledge Diffusion? Ricardo Hausmann, August 2013, Paper. “The literature on knowledge diffusion shows that it decays strongly with distance. In this paper we document that the probability that a product is added to a country’s export basket is, on average, 65% larger if a neighboring country is a successful exporter of that same product. For existing products, having a neighbor with comparative advantage in them is associated with a growth of exports that is higher by 1.5 percent per annum. While…” Link verified August 21, 2014

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