University of Toronto Department of Economics Factor Misallocation
... (in this simple case, γ) and prices (w), the more productive establishments (higher zi ) are larger; that is, demand more labor, produce more output, and generate more profits. In fact, note from equation (2) that the ratio of employment between two establishments i and j is a monotone function of t ...
... (in this simple case, γ) and prices (w), the more productive establishments (higher zi ) are larger; that is, demand more labor, produce more output, and generate more profits. In fact, note from equation (2) that the ratio of employment between two establishments i and j is a monotone function of t ...
DP2003/07 Has the rate of economic growth changed?
... where the corrections are defined as follows: Reallocation, R: This term adjusts for changes in the composition of output across industries. It adjusts for changes in observed productivity arising from changes in industrial composition. These can arise for differences in the level of productivity ac ...
... where the corrections are defined as follows: Reallocation, R: This term adjusts for changes in the composition of output across industries. It adjusts for changes in observed productivity arising from changes in industrial composition. These can arise for differences in the level of productivity ac ...
Basic premise: the impact of the digital revolution cannot be properly
... consumer directly and thus does not appear even in a “correct” measure of GDP. 2 If this is true, a declining rate of real GDP growth may be consistent with the perception of a vibrant technological environment and the microeconomic analysis that supports it. And, if this is true, then a the ...
... consumer directly and thus does not appear even in a “correct” measure of GDP. 2 If this is true, a declining rate of real GDP growth may be consistent with the perception of a vibrant technological environment and the microeconomic analysis that supports it. And, if this is true, then a the ...
NASSIF FEIJO AND ARAUJO BERLIN CONFERENCE 2014
... productivity is better understood when one investigates it considering forces from both the demand and supply sides. This means that, in addition to a firm’s stimulus to increase its productivity in order to increase or maintain its profit rate and market share, the stimulus from the macroeconomic e ...
... productivity is better understood when one investigates it considering forces from both the demand and supply sides. This means that, in addition to a firm’s stimulus to increase its productivity in order to increase or maintain its profit rate and market share, the stimulus from the macroeconomic e ...
Lecture 17
... • Fuel inefficient methods of transportation and production were scrapped at an increased rate • Technological change focused on saving energy rather than enhancing productivity ...
... • Fuel inefficient methods of transportation and production were scrapped at an increased rate • Technological change focused on saving energy rather than enhancing productivity ...
NBER WORKING PAPER SERIES PRODUCTIVITY AND THE EURO-DOLLAR EXCHANGE RATE PUZZLE
... decided to focus on the post-1984 sample, largely because none of our candidate variables is able to explain the rise and fall in the dollar during the middle of the 1980's. Thus, we do not have anything to add to the debate over the mid-1980's mystery of “the dazzling dollar”.3 Our first observatio ...
... decided to focus on the post-1984 sample, largely because none of our candidate variables is able to explain the rise and fall in the dollar during the middle of the 1980's. Thus, we do not have anything to add to the debate over the mid-1980's mystery of “the dazzling dollar”.3 Our first observatio ...
11 - Weber State University
... an annual rate of ______ for the period 1948-1973 to _______ for the period 1973-1995. A) 2.8 %, 1.57% B) 4.8%, 2.33% C) 1.8%, 1.25% D) 3.7%, 2.39% Answer: A 71) Gordon notes that along with slow labor productivity growth in the period 1973-1995, real wages also grew slowly. What sort of productivit ...
... an annual rate of ______ for the period 1948-1973 to _______ for the period 1973-1995. A) 2.8 %, 1.57% B) 4.8%, 2.33% C) 1.8%, 1.25% D) 3.7%, 2.39% Answer: A 71) Gordon notes that along with slow labor productivity growth in the period 1973-1995, real wages also grew slowly. What sort of productivit ...
(PDF)
... gains of businesses, and (c) public sector revenue. As labor productivity grows, it may be possible for all of these to increase simultaneously, without gains in one coming at the cost of one of the others.4 It is evident from the reported estimates of productivity growth that the U.S. economy’s abi ...
... gains of businesses, and (c) public sector revenue. As labor productivity grows, it may be possible for all of these to increase simultaneously, without gains in one coming at the cost of one of the others.4 It is evident from the reported estimates of productivity growth that the U.S. economy’s abi ...
Technology and Economic Growth
... - assuming that growth rates between 1929-2001 would be the same as between 1870-1929, extrapolate the same straight line to 2001 - the prediction of GDP per capita would be off by only 19% slide 27 ...
... - assuming that growth rates between 1929-2001 would be the same as between 1870-1929, extrapolate the same straight line to 2001 - the prediction of GDP per capita would be off by only 19% slide 27 ...
FACTOR PRODUCTIVITY AND EFFICIENCY OF THE VIETNAMESE ECONOMY IN TRANSITION
... hurdles, total factor productivity (TFP) and the technical efficiency level, particularly in terms of labour, were still low (Nguyen and Giang 2007; Nguyen, Giang and Bach 2007). Many factors determine the size of economic growth or output at different levels (country, industry or firm), and changes ...
... hurdles, total factor productivity (TFP) and the technical efficiency level, particularly in terms of labour, were still low (Nguyen and Giang 2007; Nguyen, Giang and Bach 2007). Many factors determine the size of economic growth or output at different levels (country, industry or firm), and changes ...
Ch 25 PPT
... • When a nation’s workers are very productive, real GDP is large and incomes are high. • When productivity grows rapidly, so do living standards. • What, then, determines productivity and its growth rate? ...
... • When a nation’s workers are very productive, real GDP is large and incomes are high. • When productivity grows rapidly, so do living standards. • What, then, determines productivity and its growth rate? ...
[The Macroeconomics of War and Peace
... only to wage changes but also to changes in hours worked. However, as Dowie reconstructs this series, changes in hours worked appear to play no role in the measurements between 1914 and 1924. In particular, Feinstein's (1972) earnings series grows by 94% from 1914 to 1924 as the hourly wage series i ...
... only to wage changes but also to changes in hours worked. However, as Dowie reconstructs this series, changes in hours worked appear to play no role in the measurements between 1914 and 1924. In particular, Feinstein's (1972) earnings series grows by 94% from 1914 to 1924 as the hourly wage series i ...
Growth Theories - Pearson Higher Education
... Advances in technology lead to investment in new capital. Labor productivity increases and the real wage rate rises above the subsistence level. When the real wage rate is above the subsistence level, the population grows. Population growth increases the supply of labor, which lowers the real wage r ...
... Advances in technology lead to investment in new capital. Labor productivity increases and the real wage rate rises above the subsistence level. When the real wage rate is above the subsistence level, the population grows. Population growth increases the supply of labor, which lowers the real wage r ...
Growth Theories - Pearson Higher Education
... Advances in technology lead to investment in new capital. Labor productivity increases and the real wage rate rises above the subsistence level. When the real wage rate is above the subsistence level, the population grows. Population growth increases the supply of labor, which lowers the real wage r ...
... Advances in technology lead to investment in new capital. Labor productivity increases and the real wage rate rises above the subsistence level. When the real wage rate is above the subsistence level, the population grows. Population growth increases the supply of labor, which lowers the real wage r ...
Statement 4: Sustaining strong growth in living standards
... demand more accurately, improving overall resource allocation and returns on investments in both physical and human capital. The productivity and price changes in key infrastructure sectors, such as energy and water, have been estimated to have increased gross domestic product (GDP) by 2.5 per cent ...
... demand more accurately, improving overall resource allocation and returns on investments in both physical and human capital. The productivity and price changes in key infrastructure sectors, such as energy and water, have been estimated to have increased gross domestic product (GDP) by 2.5 per cent ...
PDF
... determine the growth rate of overall agricultural output and input quantities. TFP growth is then measured as the difference between the two. For example, if output grows by 2 percent per year while input use increases by only 1.5 percent per year, then TFP grows by the difference, or 0.5 percent pe ...
... determine the growth rate of overall agricultural output and input quantities. TFP growth is then measured as the difference between the two. For example, if output grows by 2 percent per year while input use increases by only 1.5 percent per year, then TFP grows by the difference, or 0.5 percent pe ...
Document
... The amount of fish he catches everyday is the total product, total income and total expenditure of the Robinson-crusoe economy. ...
... The amount of fish he catches everyday is the total product, total income and total expenditure of the Robinson-crusoe economy. ...
Choice, Change, Challenge, and Opportunity
... As technology advances and the capital stock grows, real GDP per person rises. Diminishing returns to capital per hour of labor lower the real interest rate and eventually growth stops unless technology keeps on advancing. ...
... As technology advances and the capital stock grows, real GDP per person rises. Diminishing returns to capital per hour of labor lower the real interest rate and eventually growth stops unless technology keeps on advancing. ...
Effects of Increasing Agricultural Productivity: A
... transformability between exported commodities and goods produced for local market is assumed using a Constant Elasticity of Transformation (CET) function. A small country assumption is used in specifying all sectors’ exports and imports except for tea processing sector. Tea processing sector exports ...
... transformability between exported commodities and goods produced for local market is assumed using a Constant Elasticity of Transformation (CET) function. A small country assumption is used in specifying all sectors’ exports and imports except for tea processing sector. Tea processing sector exports ...
sectors labour productivity in the context of capital-labour ratio
... flow of output produced at time t. Capital, K (t) represents the durable physical inputs, such as machines, buildings, pencils and so on. The second input to the production function is labour, L (t) and it represents the inputs associated with the human body. The third input is the level of knowledg ...
... flow of output produced at time t. Capital, K (t) represents the durable physical inputs, such as machines, buildings, pencils and so on. The second input to the production function is labour, L (t) and it represents the inputs associated with the human body. The third input is the level of knowledg ...
Macro coordination: Forward Guidance as `cheap
... towards the frontier, however. It is in this context that we analyse forward guidance as a ‘coordination device’ promising monetary accommodation for this welcome and long-awaited shift back to normality. The argument crucially depends on the existence of multiple equilibria in output levels for giv ...
... towards the frontier, however. It is in this context that we analyse forward guidance as a ‘coordination device’ promising monetary accommodation for this welcome and long-awaited shift back to normality. The argument crucially depends on the existence of multiple equilibria in output levels for giv ...
Thu PAUD 1100 Smart
... Australia • Commissioned in 2006 by CRCSI and ASIBA • 12 sectors analysed (case studies in as many areas ...
... Australia • Commissioned in 2006 by CRCSI and ASIBA • 12 sectors analysed (case studies in as many areas ...
Cobb-Douglas Production Function
... The empirical evidence is not fully consistent with this proposition. labor shares do differ across countries and develop in time. Harrison (2002) shows that labor shares of countries in a panel based on United Nations data are rather volatile over time. Blanchard (1997) finds a declining labor shar ...
... The empirical evidence is not fully consistent with this proposition. labor shares do differ across countries and develop in time. Harrison (2002) shows that labor shares of countries in a panel based on United Nations data are rather volatile over time. Blanchard (1997) finds a declining labor shar ...
Manufacturing Productivity Through the Great Recession
... we explain why this productivity has changed and what it means for the short term and medium term for manufacturing. Finally, we describe how policy can influence the outcomes we describe over the long term. ...
... we explain why this productivity has changed and what it means for the short term and medium term for manufacturing. Finally, we describe how policy can influence the outcomes we describe over the long term. ...
Productivity
Productivity is an average measure of the efficiency of production. It can be expressed as the ratio of output to inputs used in the production process, i.e. output per unit of input. When all outputs and inputs are included in the productivity measure it is called total productivity. Outputs and inputs are defined in the total productivity measure as their economic values. The value of outputs minus the value of inputs is a measure of the income generated in a production process. It is a measure of total efficiency of a production process and as such the objective to be maximized in production process. Productivity measures that use one or more inputs or factors, but not all factors, are called partial productivities. A common example in economics is labor productivity, usually expressed as output per hour. At the company level, typical partial productivity measures are such things as worker hours, materials or energy per unit of production.In macroeconomics the approach is different. In macroeconomics one wants to examine an entity of many production processes and the output is obtained by summing up the value-added created in the single processes. This is done in order to avoid the double accounting of intermediate inputs. Value-added is obtained by subtracting the intermediate inputs from the outputs. The most well-known and used measure of value-added is the GDP (Gross Domestic Product). It is widely used as a measure of the economic growth of nations and industries. GDP is the income available for paying capital costs, labor compensation, taxes and profits.For a single input this means the ratio of output (value-added) to input. When multiple inputs are considered, such as labor and capital, it means the unaccounted for level of output compared to the level of inputs. This measure is called in macroeconomics Total Factor Productivity TFP or Multi Factor Productivity MFP.Productivity is a crucial factor in production performance of firms and nations. Increasing national productivity can raise living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth also helps businesses to be more profitable.