TY  - JOUR
AU  - Bernstein,Jeffrey I.
AU  - Mamuneas,Theofanis P.
AU  - Pashardes,Panos
TI  - Factor Adjustment, Quality Change, and Productivity Growth for U.S. Manufacturing
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6877
PY  - 1999
Y2  - January 1999
UR  - http://www.nber.org/papers/w6877
L1  - http://www.nber.org/papers/w6877.pdf
N1  - Author contact info:
Jeffrey I. Bernstein
Department of Economics
University Park Campus
Florida International University
11200 S.W. 8th Street
Miami, FL 33199
Tel: 305/348-2592
E-Mail: jeffrey.bernstein@fiu.edu

Theofanis P. Mamuneas
Department of Economics
University of Cyprus, P. O. Box 20537, CY-1678, Ni
E-Mail: tmamuneas@ucy.ac.cy
AB  - This paper accounts for quality improvements and adjustment costs in all inputs to U.S. manufacturing production.  Adjustment processes for non-capital inputs are slower than previously recognized.  Annual adjustment percentages are: labor 77, capital 30, energy 20, and materials 21.  Factor prices should be adjusted for quality improvements to reflect higher marginal products.  The percentage increases in marginal products from quality improvements are: labor 0.25, capital 0.30, energy 2.13, and materials 0.92.  Observed input growth should be adjusted for quality improvements.  Unadjusted input growth causes efficiency-based productivity growth rates to exceed observed productivity growth in the slowdown period of 1974 - 1995.
ER  -