NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Short and Long Run Externalities

Eric J. Bartelsman, Ricardo J. Caballero, Richard K. Lyons

NBER Working Paper No. 3810
Issued in August 1991
NBER Program(s):   ITI   EFG   IFM

In this paper we build upon previous work on external economies in manufacturing [Caballero and Lyons (1989, 1990)] by providing new evidence helpful for discriminating between different types of externalities. We investigate four-digit level input-output relationships and find that, over shorter horizons, the linkage between an industry and its customers is the most important factor in the transmission of externalities. This suggests that transactions externalities accruing primarily to the seller, and/or activity-driven demand externalities are significant for explaining the short-run behavior of measured total factor productivity. Over longer horizons. on the other hand, it is the activity level of suppliers that is more important. This suggests that external effects are also operating through intermediate goods linkages.

download in pdf format
   (271 K)

download in djvu format
   (201 K)

email paper

This paper is available as PDF (271 K) or DjVu (201 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3810

Published: "Customer and Supplier Driven Externalities" American Economic Review, Sept 1994, vol 84, No 4, pp 1075-1084

Users who downloaded this paper also downloaded these:
Caballero and Lyons w3033 The Role of External Economies in U.S. Manufacturing
Hall w3034 Invariance Properties of Solow's Productivity Residual
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us