Scale effects, time-varying markups, and the cyclical behaviour of primal and dual productivity

References

• Abbott , T. III , Griliches , Z. and Hausmann , J. 1988 . Short run movements in productivity: market power versus capacity utilization unpublished manuscript
   Google Scholar
• Applebaum , E. 1979 . Testing price taking behaviour . Journal of Econometrics , 9 : 283 – 294 .
   Google Scholar
• Basu , S. 1996 . Procyclical productivity: overhead inputs or capacity utilization? . Quarterly Journal of Economics , 111 : 719 – 751 .
   Web of Science ®Google Scholar
• Basu , S. and Fernald , J. 1995 . Are apparent spillovers a figment of specification error? . Journal of Monetary Economics , 36 : 165 – 188 .
   Web of Science ®Google Scholar
• Basu , S. and Fernald , J. 1997a . Returns to scale in US production: estimates and implications . Journal of Political Economy , 105 : 249 – 283 .
   Web of Science ®Google Scholar
• Basu , S. and Fernald , J. 1997 . Aggregate productivity and aggregate technology , International Finance Discussion Paper No. 593 Board of the Governors of the Federal Reserve System .
   Google Scholar
• Benhabib , J. and Farmer , R. 1994 . Indeterminacy and increasing returns . Journal of Economic Theory , 63 : 19 – 41 .
   Web of Science ®Google Scholar
• Burnside , C. 1996 . Production function regressions, returns to scale, and externalities . Journal of Monetary Economics , 37 : 177 – 201 .
   Web of Science ®Google Scholar
• Burnside , C. , Eichenbaum , M. and Rebelo , S. 1993 . Labor hoarding and the business cycle . Journal of Political Economy , 101 : 245 – 273 .
   Web of Science ®Google Scholar
• Caballero , R. and Lyons , R. 1992 . External effects in US procyclical productivity . Journal of Monetary Economics , 29 : 209 – 225 .
   Web of Science ®Google Scholar
• Chirinko , R. and Fazzari , S. 1994 . Economic fluctuations, market power, and returns to scale: evidence from firm-level data . Journal of Applied Econometrics , 9 : 47 – 69 .
   Web of Science ®Google Scholar
• Domowitz , I. , Hubbard , G. and Petersen , C. 1986 . Business cycles and the relationship between concentration and price cost margins . Rand Journal of Economics , 17 : 1 – 17 .
   Web of Science ®Google Scholar
• Domowitz , I. , Hubbard , G. and Petersen , C. 1988 . Market structure and cyclical fluctuations in US manufacturing . Review of Economics and Statistics , 70 ( 1 ) : 55 – 66 .
   Web of Science ®Google Scholar
• Evans , C. 1992 . Productivity shocks and real business cycles . Journal of Monetary Economics , 29 : 191 – 208 .
   Web of Science ®Google Scholar
• Farmer , R. and Guo , J. 1994 . Real business cycles and the animal spirits hypothesis . Journal of Economic Theory , 63 : 42 – 72 .
   Web of Science ®Google Scholar
• Ferson , W. and Foerster , S. 1994 . Finite sample properties of the generalized method of moments estimator in tests of conditional asset pricing models . Journal of Financial Economics , 36 : 29 – 55 .
   Web of Science ®Google Scholar
• Galeotti , M. and Schiantarelli , F. 1998 . The cyclicality of markups in a model with adjustment costs: econometric evidence for US industry . Oxford Bulletin of Economics and Statistics , 60 : 121 – 142 .
   Web of Science ®Google Scholar
• Hall , R. 1988 . The relation between price and marginal cost in US industry . Journal of Political Economy , 96 : 921 – 947 .
   Web of Science ®Google Scholar
• Hall , R. 1990 . “ Invariance properties of Solow's productivity residual ” . In Growth/Productivity/Employment , Edited by: Diamond , P. Cambridge, MA : MIT Press .
   Google Scholar
• Hall , R. and Jorgenson , D. 1967 . Tax policy and investment behavior . American Economic Behavior , 57 : 391 – 414 .
   Web of Science ®Google Scholar
• Hall , A. , Rudebusch , G. and Wilcox , D. 1996 . Judging instrument relevance in instrumental variables estimation . International Economic Review , 37 : 283 – 298 .
   Web of Science ®Google Scholar
• Haskel , J. , Martin , C. and Small , I. 1995 . Price, marginal cost, and the business cycle . Oxford Bulletin of Economics and Statistics , 57 : 25 – 41 .
   Web of Science ®Google Scholar
• Hulten , C. 1986 . Productivity change, capacity utilization, and the sources of efficiency growth . Journal of Econometrics , 33 : 31 – 50 .
   Web of Science ®Google Scholar
• Jorgenson , D. 1990 . “ Productivity and economic growth ” . In Fifty Years of Economic Measurement , Edited by: Berndt , E. R. and Triplett , J. E. Chicago, IL : University of Chicago Press .
   Google Scholar
• Jorgenson , D. , Gollop , F. and Fraumeni , B. 1987 . Productivity and US Economic Growth , Cambridge, Mass : Harvard University Press .
   Google Scholar
• Ligeralde , A. and Brown , B. 1995 . Band covariance matrix estimation using restricted residuals: a Monte Carlo analysis . International Economic Review , 36 : 751 – 767 .
   Google Scholar
• Machin , S. and Van Reenen , J. 1993 . Profit margins and the business cycle: evidence for UK manufacturing firms . Journal of Industrial Economics , 41 : 29 – 50 .
   Web of Science ®Google Scholar
• Morrison , C. 1992 . Unravelling the productivity growth slowdown in the United States, Canada, and Japan: the effects of subequilibrium, scale economies, and markups . Review of Economics and Statistics , 74 : 381 – 393 .
   Web of Science ®Google Scholar
• Morrison , C. 1993 . Productive and financial performance in US manufacturing industries: an intregrated structural approach . Southern Economic Journal , 60 : 376 – 392 .
   Google Scholar
• Morrison , C. 1994 . The cyclical nature of markups in Canadian manufacturing a production theory approach . Journal of Applied Econometrics , 9 : 269 – 282 .
   Google Scholar
• Nelson , C. and Startz , R. 1990 . The distribution of the instrumental variables esimator and its t-ratio when the instrument is a poor one . Journal of Business , 63 : 125 – 140 .
   Web of Science ®Google Scholar
• Ohta , M. 1975 . A note on the duality between production and cost functions: rate of returns to scale and rate of technical progress . Economic Studies Quarterly , 25 : 63 – 65 .
   Google Scholar
• Paul , C. Morrison and Siegel , D. 1999a . Scale economies and industry agglomeration externallities: a dynamic cost function approach . American Economic Review , 89 : 272 – 290 .
   Web of Science ®Google Scholar
• Paul , C. Morrison and Siegel , D. 1999b . Estimation of scale economies underlying growth and productivity: the empirical implications of data aggregation . Southern Economic Journal , 65 : 730 – 756 .
   Google Scholar
• Perli , R. 1998 . Indeterminacy, home production, and the business cycle: a calibrated analysis . Journal of Monetary Economics , 41 : 105 – 125 .
   Google Scholar
• Prescott , E. 1986 . Theory ahead of business cycle measurement . Carnegie-Rochester Conference Series on Public Policy , 25 : 11 – 44 .
   Google Scholar
• Roeger , W. 1995 . Can imperfect competition explain the difference between the primal and dual productivity measure? Estimates for US manufacturing . Journal of Political Economy , 21 : 316 – 330 .
   Google Scholar
• Rotemberg , J. and Woodford , M. 1995 . “ Dynamic general equilibrium models with imperfectly competitive product markets ” . In Frontiers of Business Cycle Research , Edited by: Cooley , Thomas . 243 – 293 . Princeton : Princeton University Press .
   Google Scholar
• Schmitt-Grohe , S. 1994 . Comparing four models of fluctuations due to self-fulfilling expectations , Federal Reserve Board . unpublished manuscript
   Google Scholar
• Shapiro , M. 1987 . Are cyclical fluctuations in productivity due more to supply shocks or demand shocks? . American Economic Review Papers and Proceedings , 77 : 118 – 124 .
   Web of Science ®Google Scholar
• Shea , J. 1997 . Instrument relevance in multivariate linear models: a simple measure . Review of Economics and Statistics , 79 ( 2 ) : 348 – 352 .
   Web of Science ®Google Scholar
• Solow , R. 1958 . Technical change and the aggregate production function . Review of Economics and Statistics , 39 : 312 – 320 .
   Google Scholar
• Staiger , D. and Stock , J. 1994 . Instrumental variables estimation with weak instruments , NBER Working Paper 151
   Google Scholar