Abstract
PurposeThe purpose of this paper is to investigate productivity growth and technical progress bias in the USA.Design/methodology/approachFollowing the work of Kohli in 1978 and Diewert and Wales in 1992, the paper estimates output supply and input demand functions in the context of a normalized quadratic (NQ) variable profit function using US data (over a period from 1960 to 2002) on six goods: output, exports, imports, labour, reproducible capital, and fixed capital.FindingsResults show that the NQ variable profit function with linear splines works very well and the technique for determining structural breaks is effective. Estimates show that the US productivity rate in the last decade recovered in a stepwise manner, rather than jumped overnight in 1996 (as some previous studies have suggested), and that the US productivity revival after 1995 has been volatile and fragile.Originality/valueThis paper highlights productivity trends in the USA.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
