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Computing the true spread
| Content Provider | Library of Congress - Books/Printed Material |
|---|---|
| Author | Martin, Ralf. |
| Temporal Coverage | 2005 |
| Copyright Year | 2005 |
| Abstract | How much of the observed labour productivity spread is real? This paper proposes a novel framework to calculate productivity differences between plants accounting for imperfect competition, variations in output prices across plants, endogeneity of factor inputs and measurement error in labour inputs. For UK manufacturing as a whole I find that on average 59 percent of the labour productivity spread is explained by a combination of technical efficiency variations and differences in consumer valuations. Measurement error accounts on average for 9 percent of labour productivity spreads. The paper argues that standard TFP calculations lead to a systematic under-estimation of welfare relevant differences across businesses. |
| Language | English |
| Publisher | Centre for Economic Performance, London School of Economics and Political Science |
| Publisher Place | London |
| Part of Series | Catalog |
| Requires | HTML5 supported browser |
| Access Restriction | Open |
| Subject Keyword | Imperfect Competition Productivity Measurement Productivity Spread |
| Subject Domain (in LCSH) | Productivity measurement ; |
| Subject Domain (in LCSH) | Imperfect competition ; |
| Subject Domain (in LCSH) | Productivity spread |
| Subject Domain (in LCC) | HC10 |
| Content Type | Text |
| Resource Type | Book |
