Learning by Necessity: Government Demand, , Capacity Constraints, , and Productivity Growth

• 成果类型: Article
• 署名作者: Ilzetzki, Ethan
• 署名单位: University of London; London School Economics & Political Science
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20230033
• 发表日期: 2024
• 页码: 2436-2471
• 关键词: SPENDING MULTIPLIERS; increasing returns; induced innovation; US; world-war-2; industrial; purchases; DYNAMICS; IMPACT; scale

摘要

This paper studies how firms adapt to demand shocks when facing capacity constraints. I show that increases in government purchases raise total factor productivity in quantity units at the production line level. Productivity gains are concentrated in plants facing tighter capacity constraints, , a phenomenon I call learning by necessity. Evidence is based on newly digitized archival data on US World War II aircraft production. Shifts in demand across aircraft with different strategic roles provide an instrument for aircraft demand. I show that plants adapted to surging demand by improving production methods, , outsourcing, , and combating absenteeism, , primarily when facing tighter capacity constraints. ( JEL D22, D24, E62, L93, N12, N42, N62) )