Journal article
REVISIONS IN UTILIZATION-ADJUSTED TFP AND ROBUST IDENTIFICATION OF NEWS SHOCKS
The review of economics and statistics, v 103(2)
01 May 2021
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper documents large revisions in a widely used series of utilization-adjusted total factor productivity (TFP) by Fernald (2014) and shows that these revisions can materially affect empirical results about the effects of news shocks. We trace these revisions to changes in estimated factor utilization that are evocative of cyclical measurement issues with productivity. We propose an alternative identification that is robust to these measurement issues. Applied to U.S. data, the shock predicts delayed productivity growth while simultaneously generating strong responses of novel indicators of technological innovation and forward-looking variables. The shock does not lead to comovement in macroeconomic aggregates.
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Details
- Title
- REVISIONS IN UTILIZATION-ADJUSTED TFP AND ROBUST IDENTIFICATION OF NEWS SHOCKS
- Creators
- Andre Kurmann - Drexel UniversityEric Sims - University of Notre Dame
- Publication Details
- The review of economics and statistics, v 103(2)
- Publisher
- Mit Press
- Number of pages
- 20
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000663438100003
- Scopus ID
- 2-s2.0-85110763231
- Other Identifier
- 991019168584004721
UN Sustainable Development Goals (SDGs)
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Economics
- Social Sciences, Mathematical Methods