Utilization-adjusted TFP across countries: Measurement and implications for international comovement

• 成果类型: Article
• 署名作者: Huo, Zhen; Levchenko, Andrei A.; Pandalai-Nayar, Nitya
• 署名单位: Yale University; University of Michigan System; University of Michigan; National Bureau of Economic Research; Centre for Economic Policy Research - UK; University of Texas System; University of Texas Austin
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2023.103753
• 发表日期: 2023
• 关键词: tfp; Utilization; solow residual; International comovement

摘要

This paper develops estimates of TFP growth adjusted for movements in unobserved factor uti-lization for a panel of 29 countries and up to 37 years. When factor utilization changes are un-observed, the commonly used Solow residual mismeasures actual changes in TFP. We use general equilibrium dynamic multi-country multi-sector model to derive a production function estimating equation that corrects for unobserved factor usage. We compare the properties of utilization-adjusted TFP series to the standard Solow residual, and quantify the roles of both TFP and utilization for international business cycle comovement. Utilization-adjusted TFP is vir-tually uncorrelated across countries, and does not generate much GDP comovement through its propagation. Shocks to factor utilization can more successfully account for international comovement. (c) 2023 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).