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Implications of Resource Reallocation and Technical Progress for Macroeconomic Fluctuations: Evidence from Plant-Level U.S. Manufacturing Data

Author

Listed:
  • Kirk White

    (Economic Research Service, U.S. Department of Agriculture)

  • Jerome P. Reiter

    (Duke University)

  • Amil Petrin

    (University of Minnesota,Twin Cities and NBER)

Abstract

contributions to aggregate productivity growth over this period. While reallocation is important for aggregate productivity growth, it contributes little to fluctuations in aggregate productivity growth at business cycle frequencies. Almost all of the volatility in aggregate productivity growth was due to variation in the growth rate of technical efficiency. In contrast, aggregate reallocation is relatively stable and almost always positive, contributing 1 percentage point per year to aggregate productivity growth.

Suggested Citation

  • Kirk White & Jerome P. Reiter & Amil Petrin, 2009. "Implications of Resource Reallocation and Technical Progress for Macroeconomic Fluctuations: Evidence from Plant-Level U.S. Manufacturing Data," 2009 Meeting Papers 985, Society for Economic Dynamics.
    • Handle: RePEc:red:sed009:985
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    References listed on IDEAS

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    1. Martin Neil Baily & Eric J. Bartelsman & John Haltiwanger, 2001. "Labor Productivity: Structural Change And Cyclical Dynamics," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 420-433, August.
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