TRANSITORY PRODUCTIVITY SHOCKS AND LONG-RUN OUTPUT

• 成果类型: Article
• 署名作者: GALOR, O; TSIDDON, D
• 署名单位: Hebrew University of Jerusalem
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.2307/2527150
• 发表日期: 1992
• 页码: 921-933
• 关键词: economic-development; equilibrium

摘要

This paper analyzes the effects of transitory productivity shocks on long-run output. The study demonstrates that, despite its transitory nature, an adverse productivity shock may result in lower long-run output. A fall in productivity reduces output and savings, and consequently, the interest rate increases and investment in human capital falls. Although productivity returns to its initial level, a sufficiently large reduction in investment pushes the economy to a new stationary equilibrium with lower output. A redistribution of income from consumers to savers may restore the initial long-run output.