The objective of this paper is to explain the reasons behind the dynamics of labor productivity (LP) growth during a process of institutional and structural change. We show - by means of a theoretical discussion and an empirical analysis, conducted on a sample of 25 European countries for the period 1995–2016 - that four main channels contribute to explaining the evolution of LP. First Econometrica, Vol. 77, No. 3 (May, 2009), 623–685. IDIOSYNCRATIC SHOCKS: ESTIMATION AND THE IMPACT. The impact of economic policy shocks on the outcomes.
What Makes Labour Markets Resilient During Recessions. Abstract. We provide evidence that positive industry-level productivity shocks cause hours worked to fall in the short run in the UK economy. We use UK industry data, which covers both manufacturing and non-manufacturing industries, and identify productivity shocks using long-run restrictions and structural vector autoregression methodology. The Impact of technology and demand shocks on structural dynamics: evidence from Austrian manufacturing. Werner Hölzl and Andreas Reinstaller () No 15, Research Memorandum from Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) Abstract: This paper examines the link between structural change between and within industries.
The effect of technology and demand shocks on structural. The Impact of Government Policies on Agricultural. Productivity, Technology and Economic Growth: PRODUCTIVITY OR UNEXPECTED DEMAND SHOCKS: WHAT DETERMINES. Variance decomposition shows that future demand and supply shocks account for about 3035 percent of oil price va- riance over twelve months, realized while demand and supply shocks explain only about 5 percent. In particular, future oil supply shocks are more than twice as important as realized and future aggregate demand shocks. Impact on most measures of structural labour market performance or labour market resilience considered in this chapter. If anyt hing, it may mitigate the impact of economic shocks on unemployment and earnings inequality by inducing firms to adjust more on the wage and working-time margins than on the employment margin. Demand or productivity: What determines firm growth? EFIGE working paper 58 August 2012 Andrea Pozzi and Fabiano Schivardi EFIGE IS A PROJECT DESIGNED TO HELP IDENTIFY THE INTERNAL POLICIES NEEDED TO IMPROVE EUROPE’S EXTERNAL COMPETITIVENESS.
Downloadable! In this paper we develop a structural empirical model that allows us to estimate the impact of R D on firm profitability through two channels. In the first channel, R D investment by the firm can impact the firm’s production efficiency and lower its marginal cost. This productivity channel raises the firm’s sales and profits in both the domestic and export market. Examine the effects of shocks to aggregate productivity, foreign demand, government expenditures, and demand for foreign liquidity on the dynamics of products of heterogeneous firms. Our structural empirical specifications connecting macroeconomic shocks to product dynamics are based on a neoclassical dynamic. In particular, a positive technological shock leads to a decrease in unemployment, but adjustment to new equilibrium level is quite sluggish. Maidorn (2003) investigates the hysteresis on the Austrian labor market, using SVAR model of the impact of four structural shocks such as shocks of productivity, demand, wages and labor supply. Structural Reforms and Productivity Growth in Emerging. This paper quantifies the impact of three key external shocks – external demand, interest rate, and uncertainty shocks – on emerging market economies (EMEs).
These are technological shocks, labor supply shocks and shocks of equilibrium unemployment (or wage shocks). The impact of labor demand shocks has only a sh ort-term impact. Saltari and Travaglini (2009) on the basis o f analysis of three-dimensional structural VAR model for labor productivity, employment and aggregate demand claim Examine the effects of shocks to aggregate productivity, foreign demand, government expenditures, and demand for foreign liquidity onthe dynamics of products of heterogeneous firms. Our structural empirical specifications connecting macroeconomic shocks to product dynamics are based on a neoclassical dynamic.
Inflation Dynamics in Yemen: An Empirical Analysis;. Oil Prices and the Stock Market Review of Finance. Based on the model of structural dynamics of Pasinetti, we develop an identification scheme that allows us to extract technology and demand shocks, by means of a structural vector autoregressive. Store responses in local markets. Third, the impact of regulation on productivity must be disentangled from demand shocks, such as increases in market size or struc-tural changes in shopping behavior, to ensure that such shocks are not interpreted as changes in productivity. Fourth, standard problems such as the simultaneity.
MERIT-Infonomics Research Memorandum series The Impact.
Econometrica, Vol. 77, No. 3 (May, 2009), 623–685 THE IMPACT OF UNCERTAINTY SHOCKS BY NICHOLAS BLOOM1 Uncertainty appears to jump up after major shocks like the Cuban Missile crisis, the assassination of JFK, the OPEC I oil-price shock, and the 9/11 terrorist attacks.
EconStor is a publication server for scholarly economic literature, provided as a non-commercial public service In productivity and demand on net entry and employment in 19 industrial sectors of the Austrian economy. Based on the model of structural dynamics of Pasinetti, we develop an identification scheme that allows us to extract technology and demand shocks, by means of a structural vector autoregres-sive (SVAR) model with long-run restrictions. Shifts in labor demand are caused by changes in productivity, and productivity is seen as the central driving force of unemployment fluctuations. Given the major role played by productivity, there is surprisingly little empirical evidence on the impact of productivity changes on unemployment.
We look at sectoral productivity dynamics, which allow for an examination of the key channels through which reforms improve aggregate productivity. Second, we estimate the impact of large structural reform shocks on productivity, which partially attenuates the endogeneity problem. A Dynamic Analysis of Entry Regulations and Productivity in Retail Trade Florin Maicanyand Matilda Orthz December 7, 2014 Abstract Quantifying possible ine ciencies stemming from regulation is important to both policymakers and researchers. We use a dynamic structural model to evaluate. A Dynamic Analysis of Entry Regulations and Productivity.
And liabilities. Most notably, these shocks appreciate the US real exchange rate and improve its terms of trade. Shocks to the demand for US manu-facturing also lead to real dollar appreciation; however, they appear to have less pronounced aggregate effects, with limited impact on trade and capital accounts. Earnings dynamics and firm-level shocks VOX, CEPR Policy. The impact of productivity and demand shocks on structural dynamics: Evidence from Austrian manufacturing. W. Hölzl, and A. Reinstaller. Structural Change and Economic Dynamics 18 (2): 145--166 (June 2007). Demand or productivity: What determines firm growth. The impact of production shocks are evaluated by comparing the outlook period maize price during a normal harvest season with hypothetical parity prices for a bumper harvest and a drought season. These production shocks were introduced into the model in the 2017 outlook period. Based on Pasinetti's model of structural dynamics we develop an empirical identification strategy for aggregate and sectoral labor productivity and de…. The impact of productivity and demand shocks on structural dynamics: Evidence from Austrian manufacturing. Werner Hölzl and Andreas Reinstaller () Structural Change and Economic Dynamics, 2007, vol. 18, issue 2, 145-166 Date: 2007 References: View references in EconPapers View complete reference list from CitEc. The Impact of Uncertainty Shocks - Semantic Scholar. For instance, Kilian (2009) identifies demand and supply shocks using a structural vector autoregression (SVAR) with data on oil production and shipping prices as proxies for supply and demand, and Kilian and Park (2009) extend this methodology to examining different shocks’ impact on the US stock market. The transitory demand shocks may have an impact on firm turnover and investment decisions, which includes both the structural physical productivity and the demand shifter observed by firms. The coefficients on productivity, demand shocks, and inventory are very similar to our main results in Table. This paper examines the outcomes of the fiscal adjustment policies adopted during the period in which Tanzania experienced economic shocks. The econometric models are used to determine the impact of exogenous and economic policy shocks on gdp growth, public spending and the fiscal balance. The results revealed that policy shocks resulted in structural changes in output growth and public.
This in turn reduces profits and therefore innovation incentives particularly for firms with low productivity. Overall the positive impact of the export shock on innovation is magnified for high productivity firms, those demand shocks on productivity are substantial and Marc Melitz. Ment costs on investment and exporting, the impact the export demand shocks have on rm-level productivity estimation, and di erences in rm-level outcomes across markets. Alessandria and Choi (2007) argue that \lags in expanding trade ows are potentially more important for net export dynamics than the costs of entering and continuing exporting.". Demand or productivity: . information on firm-level prices to reach three main conclusions. First, demand shocks are at least as important as productivity shocks for firm growth. Second, . the 2nd EIEF workshop on structural approaches to productivity and industry dynamics, the 11th CAED Conference, the CEPR/JIE conference The Impact of technology and demand shocks on structural.
Holzl, W Reinstaller, A 2004, The Impact of technology and demand shocks on structural dynamics: evidence from Austrian manufacturing.MERIT Research Memoranda, no. 015, MERIT, Maastricht Economic Research Institute on Innovation and Technology, Maastricht. Firm Dynamics with Frictional Product and Labor Markets. Coronavirus and macroeconomic policy VOX, CEPR Policy Portal. Firm-Level Investment and Export Dynamics.
Based on Pasinetti's model of structural dynamics we develop an empirical identification strategy for aggregate and sectoral labor productivity and demand shocks in a structural vector. Productivity, Aggregate Demand and Unemployment Fluctuations. The dynamics of a small open economy in response.
The model to evaluate the quantitative contributions of productivity and demand for the labor market and the dispersions of prices and labor productivity. We further analyze the impact of shocks to the rst and second moments of idiosyncratic risk on macroeconomic outcomes. An increase in demand uncertainty induces sizable declines in output. The impact of productivity and demand shocks on structural dynamics. Some of these shocks can be structural, or permanent, while others can be more temporary in nature. Economic theory states that, in a competitive labour market, wages are not related to firm characteristics: workers bear only the risk of shocks to their own productivity, which they carry with them wherever they work, and they bear them fully. Downloadable! This paper examines the link between structural change between and within industries. We analyse the influence of sector specific developments in productivity and demand on net entry and employment in 19 industrial sectors of the Austrian economy. Based on the model of structural dynamics of Pasinetti, we develop an identification scheme that allows us to extract technology. 2 The Impact of Government Policies on Agricultural Productivity and Structure: Preliminary Results Mary Ahearn, Jet Yee, and Wallace Huffman Abstract: Our paper begins with a consideration of the causal relationships among productivity, farm structure, government farm payments and public investments in research. Volatility of macro variables. Some researchers suppose that firms’ shocks can have an impact due to the firm size distribution, i.e. when such distribution is fat-tailed. In that case, shocks to large firms do not average out and instead output or productivity shocks to large firms have a potential to drive aggregate volatility. The dynamic impact of external shocks on fiscal reaction. The impact of productivity and demand shocks on structural.
Associated with money supply and demand have an increasing impact on inflation over the medium term. Apart from inflation shocks, imported inflation and the pass-through of international prices account for most of inflation dynamics in the short run (e.g., the first year). In the medium term, however, domestic shocks to money supply and GDP explain. Impact of major macroeconomic shocks, since these typically have both a –rst and second moment component. The primary contribution of this paper is a structural framework to analyze these types of un-certainty shocks, building a model with a time varying second moment of the driving process and a mix of labor and capital adjustment costs. The impact of technology and demand shocks on structural dynamics Werner H¨olzl and Andreas Reinstaller June 25, 2004 Abstract This paper examines the link between structural change between. We analyse the influence of sector specific developments in productivity and demand on net entry and employment in 19 industrial sectors of the Austrian economy. Based on the model of structural dynamics of Pasinetti, we develop an identification scheme that allows us to extract technology and demand shocks, by means of a structural vector autoregressive (SVAR) model with long-run restrictions. Journal of Monetary Economics 28 (1991) 411-434. North-Holland The dynamics of a small open economy in response to monetary, fiscal, and productivity shocks Emanuela Cardia Universite de Montreal, Montreal, Quebec H3C 3J7, Canada Received August 1989, final version received May 1991 This paper evaluates empirically the relative importance of monetary and fiscal versus technol- ogy shocks. Publications Marc Melitz - Harvard University.
The lesson is that the coronavirus epidemic, through its negative impact on agents’ expectations of future productivity growth, might induce a demand-driven recession. 2. Now suppose that the central bank reacts by lowering the policy rate. This intervention sustains aggregate demand, by inducing agents to increase borrowing and spending.
Product Dynamics and Aggregate Shocks: Evidence. The International Dimension of Productivity and Demand. Demand or productivity: What determines firm growth. Structural change, institutions and the dynamics of labor. "Regional productivity growth in European countries. The role of services," ERSA conference papers ersa10p163, European Regional Science Association. Kurose, Kazuhiro, 2009. "The relation between the speed of demand saturation and the dynamism of the labour market," Structural Change and Economic Dynamics, Elsevier, vol. 20(2), pages 151-159 The Effects of Shocks on the Ukrainian Labor Market:. EconStor: R D Dynamics and Its Impact on Productivity. Effects of productivity shocks on hours worked:. The impact of uncertainty shocks in emerging economies.
R D Dynamics and Its Impact on Productivity and Export. Structural Change and Economic Dynamics Volume 18, Issue 2 , June 2007, Pages 145-166 The impact of productivity and demand shocks on structural dynamics: Evidence from Austrian manufacturing. About Cookies, including instructions on how to turn off cookies if you wish to do so. By continuing to browse this site you agree to us using cookies as described in About Cookies. Remove maintenance message. The impact of production shocks on maize markets.