Information about this author at RePEc
NBER Working Papers and Publications
|March 2018||Innovation, Productivity Dispersion, and Productivity Growth|
with Lucia Foster, Cheryl Grim, John C. Haltiwanger: w24420
We examine whether underlying industry innovation dynamics are an important driver of the large dispersion in productivity across firms within narrowly defined sectors. Our hypothesis is that periods of rapid innovation are accompanied by high rates of entry, significant experimentation and, in turn, a high degree of productivity dispersion. Following this experimentation phase, successful innovators and adopters grow while unsuccessful innovators contract and exit yielding productivity growth. We examine the dynamic relationship between entry, productivity dispersion, and productivity growth using a new comprehensive firm-level dataset for the U.S. We find a surge of entry within an industry yields initially an increase in productivity dispersion and then after a significant lag an inc...
|January 2018||Innovation, Productivity Dispersion, and Productivity Growth|
with Lucia Foster, Cheryl Grim, John Haltiwanger
in Measuring and Accounting for Innovation in the 21st Century, Carol Corrado, Javier Miranda, Jonathan Haskel, and Daniel Sichel, organizers
|August 2017||Macro and Micro Dynamics of Productivity: From Devilish Details to Insights|
with Lucia S. Foster, Cheryl A. Grim, John Haltiwanger: w23666
Researchers use a variety of methods to estimate total factor productivity (TFP) at the firm level and, while these may seem broadly equivalent, how the resulting measures relate to the TFP concept in theoretical models depends on the assumptions about the environment in which firms operate. Interpreting these measures and drawing insights based upon their characteristics thus must take into account these conceptual differences. Absent data on prices and quantities, most methods yield ``revenue productivity" measures. We focus on two broad classes of revenue productivity measures in our examination of the relationship between measured and conceptual TFP (TFPQ). The first measure has been increasingly used as a measure of idiosyncratic distortions and to assess the degree of misallocation...