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Learning by Doing, Productivity, and Growth: New Evidence on the Link between Micro and Macro Data

Author

Listed:
  • Brad R. Humphreys

    (West Virginia University)

  • Scott Schuh

    (West Virginia University)

  • Corey J.M. Williams

    (Shippensburg University)

Abstract

Research suggests athletic performances are well-measured proxies for technological progress. This paper uses a century of auto and foot racing data to analyze technological changes in microeconomic learning-by-doing (LBD), observed as declining elapsed times, and macroeconomic aggregates like total factor productivity (TFP). The pace of LBD in athletics also declined around the 1973 Productivity Slowdown and varies widely across time and athletes. Auto racing speeds mainly reflect technological changes in capital (cars) and share a common stochastic trend with TFP (cointegration). Speeds error correct to TFP, but not vice versa, affirming TFP diffusion assumed in basic macro growth models.

Suggested Citation

  • Brad R. Humphreys & Scott Schuh & Corey J.M. Williams, "undated". "Learning by Doing, Productivity, and Growth: New Evidence on the Link between Micro and Macro Data," Working Papers 24-02, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:24-02
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1072&context=econ_working-papers
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    More about this item

    Keywords

    Technological progress; learning by doing; TFP; labor productivity; autoracing; track and  field; RBC model; cointegration; error correction; Indianapolis 500; NHRA Winternationals;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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