TY  - JOUR
AU  - Bartelsman,Eric J.
AU  - Caballero,Ricardo J.
AU  - Lyons,Richard K.
TI  - Short and Long Run Externalities
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3810
PY  - 1991
Y2  - August 1991
UR  - http://www.nber.org/papers/w3810
L1  - http://www.nber.org/papers/w3810.pdf
N1  - Author contact info:
Eric Bartlesman
Vrije Universiteit Amsterdam
Tinbergen Institute
E-Mail: ebartelsman@alum.mit.edu

Ricardo J. Caballero
MIT
Department of Economics
Room E52-373a
Cambridge, MA 02142-1347
Tel: 617/253-0489
Fax: 617/253-6915
E-Mail: caball@mit.edu

Richard K. Lyons
460 Michigan Ave
Berkeley, CA 94707
Tel: 510-642-1059
Fax: 510-642-4700
E-Mail: lyons@haas.berkeley.edu
AB  - 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.
ER  -