TY  - JOUR
AU  - Cooper,Russell
AU  - Haltiwanger,John
TI  - The Aggregate Implications of Machine Replacement:  Theory and Evidence
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3552
PY  - 1993
Y2  - June 1993
UR  - http://www.nber.org/papers/w3552
L1  - http://www.nber.org/papers/w3552.pdf
N1  - Author contact info:
Russell Cooper
Department of Economics
European University Institute
via della Piazzola, 43
Firenze, 50133
ITALY
E-Mail: russellcoop@gmail.com

John C. Haltiwanger
Department of Economics
University of Maryland
College Park, MD 20742
Tel: 301/405-3504
Fax: 301/405-3542
E-Mail: haltiwan@econ.umd.edu
AB  - This paper studies an economy in which producers must incur resource costs to replace depreciated machines. The process of costly replacement and depreciation creates endogenous fluctuations in productivity, employment and output of a single producer. We also explore the spillover effects of machine replacement by multiple, independent producers. The implications of our model are generally consistent with observed monthly output and productivity fluctuations in automobile plants and with monthly variations in employment and production in the manufacturing sector.
ER  -