What does it take to explain procyclical productivity?

Contributions to Macroeconomics

Volumn 4, Issue 1, 2004, Pages

  Wen, Yi ^a  

^a Cornell University ^*  (United States)

Author keywords

Adjustment cost; Capacity utilization; Demand shocks; Labor hoarding; Productivity; Real business cycle

Indexed keywords

EID: 14944376110     PISSN: 15346005     EISSN: 15346005     Source Type: Journal    
DOI: 10.2202/1534-6005.1180     Document Type: Review

References (61)

1. Aizcorbe, A. M., 1992, Procyclical labor productivity, increasing returns to labor, and labor hoarding in car assembly plant employment, Economic Journal 102(413), 860-873.
2. Cho, J. and T. Cooley, 1994, Employment and hours over the business cycle, Journal of Economics Dynamics and Control 18, 411-432.
3. Backus, D., P. Kehoe and F. Kydland, 1992, International real business cycles, Journal of Political Economy 100, 745-775.
4. Baily, M., E. Bartelsman, and J. Haltiwanger, 2001, Labor productivity: Structural change and cyclical dynamics, Review of Economics and Statistics 83(3), 420-433.
5. Barsky, R. and J. Miron, 1989, The seasonal cycle and the business cycle, Journal of Political Economy 97, no. 3, 503-534.
6. Basu, S., 1995, Intermediate goods and business cycles: Implications for productivity and welfare, American Economic Review 85(3), 512-531.
7. Basu, S., 1996, Procyclical productivity: increasing returns or cyclical utilization?, The Quarterly Journal of Economics, August.
8. Basu, S. and J. Fernald, 1997, Returns to scale in U.S. production: Estimates and implications, Journal of Political Economy 105, 249-283.
9. Baxter, M. and R. King, 1991, Productive externalities and business cycles, Institute for Empirical Macroeconomics at Federal Reserve Bank of Minneapolis, Discussion Paper 53.
10. - and -, 1995, Measuring business cycles: Approximate band-pass filters for economic time series, NBER working paper 5022.
11. Benhabib, J. and Y. Wen, 2001, Indeterminacy, aggregate demand, and the real business cycle, Journal of Monetary Economics (forthcoming).
12. Bernanke, B. and M. Parkinson, 1991, Procyclical labor productivity and competing theories of the business cycle: Some evidence from interwar U.S. manufacturing industries, Journal of Political Economy 99 (no. 3), 439-459.
13. Blanchard, O., 1989, A traditional interpretation of macroeconomic fluctuations, American Economic Review 79 (No 5) 1146-1163.
14. -, 1993, Consumption and the recession of 1990-1991, American Economic Review 93 (May), 270-273.
15. Blinder, A., 1986, Can the production smoothing model of inventory behavior be saved? The Quarterly Journal of Economics CI (August), 431-453.
16. Burgess, S., 1988, Employment adjustment cost in UK manufacturing, The Economic Journal 98 (March), 81-103.
17. Burnside, C. and Eichenbaum, M., 1996, Factor-Hoarding and the Propagation of Business-Cycle Shocks, American Economic Review v86, n5 (December 1996): 1154-74.
18. Burnside, C., M. Eichenbaum and S. Rebelo, 1993, Labor hoarding and the business cycle, Journal of Political Economy 101 (2), 245-273.
19. Cass, D. and K. Shell, 1983, Do sunspots matter? Journal of Political Economy 91, 193-227.
20. Chari, V. V., P. Kehoe, and E. McGrattan, 2004, Business cycle accounting, Federal Reserve Bank of Minneapolis, Staff Report 328.
21. Christiano, L. and M. Eichenbaum, 1992, Current real-business-cycle theories and aggregate labor-market fluctuations, American Economic Review 82, 430-450.
22. Cochrane, J., 1994, Shocks, Carnegie-Rochester Conference Series on Public Policy 41, 295-364.
23. Cogley, T. and J. Nason, 1995, Output dynamics in real-business-cycle models, American Economic Review 85, 492-511.
24. Constantinides, G., 1990, Habit Formation: A Resolution of the Equity Premium Puzzle, Journal of Political Economy v98, n3 (June 1990): 519-43.
25. Dornbusch, R. and F. Stanley, 1981, Macroeconomics, 2nd. ed. New York: McGraw-Hill.
26. Evans, C., 1992, Productivity shocks and real business cycles, Journal of Monetary Economics 29, 191-208.
27. Fair, R., 1969, The Short-run Demand for Workers and Hours, Amsterdam: North-Holland.
28. -, 1985, Excess labor and the business cycle, American Economic Review 75(1), 239-245.
29. Fairise, X. and F. langot, 1994, Labor productivity and the business cycle: Can RBC models be saved? European Economic Review 38, 1581-1594.
30. Fay, J. and J. Medoff, 1985, Labor and output over the business cycle, American Economic Review 75(4), 638-655.
31. Greenwood, J., Z. Hercowitz and G. Huffman, 1988, Investment, capacity utilization, and the real business cycle, American Economic Review 78, 402-417.
32. Hall, R., 1988, The relation between price and marginal cost in U.S. industry, Journal of Political Economy 96 (no. 5), 921-947.
33. -, 1997, Macroeconomic fluctuations and the allocation of time, Journal of Labor Economics 15, 223-250.
34. Hamermesh, D., 1989, Labor demand and the structure of adjustment costs, American Economic Review 79 (4), 674-689.
35. Hamermesh, D. and G. Pfann, 1996, Adjustment costs in factor demand, Journal of Economic Literature XXXIV (September), 1264-92.
36. Hansen, G., 1985, Indivisible labor and the business cycle, Journal of Monetary Economics 16, 309-325.
37. Harrison, S. and M. Weder, 2001, Did sunspot forces cause the Great Depression? Working Paper, Columbia University.
38. King, R., C. Plosser, and S. Rebelo, 1988, Production, growth and business cycles: I. The basic neoclassical model, Journal of Monetary Economics 21, 195-232.
39. King, R. and S. Rebelo, 1999, Resuscitating the RBC model, in the Handbook of Macroeconomics (Eds by M. Woodford and J. Taylor).
40. Kuh, E., 1965, Income distribution and employment over the business cycle, in The Brookings Quarterly Econometric Models of the United States, Chicago: Rand McNally.
41. Kydland, F. and E. Prescott, 1982, Time to build and aggregate fluctuations, Econometrica 50 (November), 1345-70.
42. Long, J. and C. Plosser, 1983, Real business cycles, Journal of Political Economy 91 (no. 1), 39-69.
43. Lucas, R. E., 1970, Capacity, overtime, and empirical production functions, American Economic Review 60 (March), 23-27.
44. Mankiw, G., 1989, Real business cycles: A new Keynesian perspective, Journal of Economic Perspectives 3, 79-90.
45. Miron, J and J. Beaulieu, 1996, What Have Macroeconomists Learned about Business Cycles form the Study of Seasonal Cycles? Review of Economics and Statistics v78, n1 (February 1996): 54-66.
46. Ohanian, L., 2002, Why did productivity fall so much during the Great Depression? Federal Reserve Bank of Minneapolis Quarterly Review 26 (Spring), 12-17.
47. Oi, W., 1962, Labor as a quasi-fixed factor, Journal of Political Economy 70 (December), 538-555.
48. Prescott, E., 1986, Theory ahead of business-cycle measurement, Carnegie - Rochester Conference Series on Public Policy 25, 11-44.
49. Rogerson, R., 1988, Indivisible labor, lotteries and equilibrium, Journal of Monetary Economics 21 (January), 3-16.
50. Rotemberg, J. and L. Summers, 1990, Inflexible prices and procyclical productivity, Quarterly Journal of Economics 105 (November), 851-874.
51. Rotemberg, J. and M. Woodford (1996), Real-business-cycle models and the forecastable movements in output, hours, and consumption, American Economic Review 86 (March), 71-89.
52. Sargent, T., 1978, Estimation of dynamic labor demand schedules under rational expectations, Journal of Political Economy LXXXVI, 1009-44.
53. Sbordone, A., 1996, Cyclical productivity in a model of labor hoarding, Journal of Monetary Economics 38, 331-361.
54. -, 1997, Interpreting the procyclical productivity of manufacturing sectors: External effects or labor hoarding? Journal of Money, Credit, and Banking 29 (no. 1).
55. Shapiro, M., 1986, The dynamic demand for capital and labor, Quarterly Journal of Economics 101 (August), 513-542.
56. -, 1993, Cyclical productivity and the workweek of capital, American Economic Review 83, Papers and Proceedings, 229-233.
57. Solow, R., 1973, Some evidence on the short-run productivity puzzle, in J. Baghwati and R. Eckaus (Eds), Development and Planning, London: Allen and Unwin.
58. Summers, L., 1986, Some skeptical observations on real business cycle theory, Federal Reserve Bank of Minneapolis Quarterly Review, Fall, 23-27.
59. Wen, Yi., 1998, Capacity Utilization under increasing returns to scale, Journal of Economic Theory 81, 7-36.
60. -, 2002a, Fickle consumers versus random technology: Explaining domestic and international comovements, Working Paper, Department of Economics, Cornell University.
61. -, 2002b, Understanding the inventory cycle, Working Paper, Department of Economics, Cornell University.