Recessions and total factor productivity: Evidence from sectoral data()

The recent COVID-19 crisis has generated a concern that productivity (which was already at historically low levels) may further decline. From a theoretical standpoint, the recessions-total factor productivity (TFP) nexus is ambiguous à priori. This paper empirically examines the dynamic impact of re...

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Autores principales: Furceri, Davide, Kilic Celik, Sinem, Jalles, João Tovar, Koloskova, Ksenia
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2021
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7539064/
https://www.ncbi.nlm.nih.gov/pubmed/33041420
http://dx.doi.org/10.1016/j.econmod.2020.09.025
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author Furceri, Davide
Kilic Celik, Sinem
Jalles, João Tovar
Koloskova, Ksenia
author_facet Furceri, Davide
Kilic Celik, Sinem
Jalles, João Tovar
Koloskova, Ksenia
author_sort Furceri, Davide
collection PubMed
description The recent COVID-19 crisis has generated a concern that productivity (which was already at historically low levels) may further decline. From a theoretical standpoint, the recessions-total factor productivity (TFP) nexus is ambiguous à priori. This paper empirically examines the dynamic impact of recessions on TFP. We compute a new measure of utilization-adjusted productivity from a sample of 24 industries in 18 advanced economies between 1970 and 2014. Resorting to the local projection method we trace out the dynamic short to medium-term impact of such recessionary shocks. We find that deep recessions lead to a permanent deterioration in the level of total factor productivity. This effect is driven by the increase in resource misallocation across different sectors.
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spelling pubmed-75390642020-10-07 Recessions and total factor productivity: Evidence from sectoral data() Furceri, Davide Kilic Celik, Sinem Jalles, João Tovar Koloskova, Ksenia Econ Model Article The recent COVID-19 crisis has generated a concern that productivity (which was already at historically low levels) may further decline. From a theoretical standpoint, the recessions-total factor productivity (TFP) nexus is ambiguous à priori. This paper empirically examines the dynamic impact of recessions on TFP. We compute a new measure of utilization-adjusted productivity from a sample of 24 industries in 18 advanced economies between 1970 and 2014. Resorting to the local projection method we trace out the dynamic short to medium-term impact of such recessionary shocks. We find that deep recessions lead to a permanent deterioration in the level of total factor productivity. This effect is driven by the increase in resource misallocation across different sectors. Elsevier B.V. 2021-01 2020-10-07 /pmc/articles/PMC7539064/ /pubmed/33041420 http://dx.doi.org/10.1016/j.econmod.2020.09.025 Text en © 2020 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Furceri, Davide
Kilic Celik, Sinem
Jalles, João Tovar
Koloskova, Ksenia
Recessions and total factor productivity: Evidence from sectoral data()
title Recessions and total factor productivity: Evidence from sectoral data()
title_full Recessions and total factor productivity: Evidence from sectoral data()
title_fullStr Recessions and total factor productivity: Evidence from sectoral data()
title_full_unstemmed Recessions and total factor productivity: Evidence from sectoral data()
title_short Recessions and total factor productivity: Evidence from sectoral data()
title_sort recessions and total factor productivity: evidence from sectoral data()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7539064/
https://www.ncbi.nlm.nih.gov/pubmed/33041420
http://dx.doi.org/10.1016/j.econmod.2020.09.025
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