Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229573
Authors: 
Jacob, Nick
Mion, Giordano
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8755
Abstract: 
We revisit UK’s poor productivity performance since the Great Recession by means of both a suitable theoretical framework and firm-level prices and quantities data for detailed products allowing us to both measure demand, and its changes over time, and distinguish between quantity total factor productivity (TFP-Q), i.e., the capacity to turn inputs into more physical output (number of shirts, liters of beer), and what we call revenue total factor productivity (TFP-R), i.e., productivity calculated using revenue (or value-added) as a measure of output and so the capacity to turn inputs into more revenue. This in turn allows us to measure how changes in TFP-Q, demand and markups ultimately affected revenue TFP, as well as labour productivity, over the Great Recession. Our findings suggest that the poor UK firms’ productivity performance post-recession is due to both a weakening of demand and a decreasing TFP-Q pushing down sales, markups, revenue TFP and labour productivity.
Subjects: 
total factor productivity (TFP)
revenue TFP
prices
demand
Great Recession
United Kingdom
JEL: 
D24
L11
E01
O47
O52
Document Type: 
Working Paper

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