Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82448
Authors: 
Lindström, Tomas
Year of Publication: 
1999
Series/Report no.: 
Sveriges Riksbank Working Paper Series 89
Abstract: 
Using the method of Caballero and Lyons (1990, 1992), I examine detailed Swedish manufacturing firm-level data on output and factor inputs from 1979 through 1994. Panel regressions show that an increase in aggregate output and inputs appears to raise individual firms’ production beyond private marginal returns, a result consistent with external economies. However, while considering potential specification difficulties, this paper shows that a model in which random shifts in technology drive the business cycle statistically outperforms the Caballero-Lyons model. This finding suggests that high-frequency random shifts in technology are more important for movements in firms’ productivity than are external economies.
Subjects: 
business fluctuations
economic growth
increasing returns
manufacturing
JEL: 
D24
L60
Document Type: 
Working Paper

Files in This Item:
File
Size
165.48 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.