Issues on the measurement of the Solow residual and the testing of its exogeneity: Evidence for Canada

• 成果类型: Article
• 署名作者: Paquet, A; Robidoux, B
• 署名单位: University of Quebec; University of Quebec Montreal
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(01)00056-3
• 发表日期: 2001
• 页码: 595-612
• 关键词: Solow residual; exogeneity of productivity shocks; market structure; varying capacity utilization; Real business cycles

摘要

This paper examines the impact of adjusting the Solow residual for variable capacity utilization on the empirical assessment of market structure and exogeneity of productivity shocks. Making use of an innovative measure of capacity utilization available in Canada reveals that its aggregate market structure is well described by constant returns to scale and perfect competition in contrast to most studies which do not make this adjustment. Furthermore, when the capital stock is adjusted for variations in utilization rates, Canadian productivity shocks are exogenous to real and monetary variables. (C) 2001 Published by Elsevier Science B.V.