Questions tagged [productivity]

A measure of efficiency in production for some given set of inputs

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115 votes
16 answers
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How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

Decades ago a factory job could support a wife and kids until retirement and they offered insurance, benefits, etc. Now, no more unions, those jobs as well as tech and customer service jobs are ...
Bruno1993's user avatar
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21 votes
2 answers
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Does diversity lead to more productivity?

Is it true that "Companies with diverse workforces outperform those with homogenous teams"? That's what TrendsWatching says anyway. And is it "diverse workforce" or "workforce ...
Sergey Zolotarev's user avatar
18 votes
6 answers
13k views

Productivity vs real earnings in the US -- what happened ca 1974?

Somewhat related to the most recent US elections, I've been researching the whole "white working class" situation, and one strange anomaly has popped up. When one looks at a graph of productivity (...
Hot Licks's user avatar
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11 votes
3 answers
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How does GNU software development sustain economically?

I apologise if this question is out of topic, but it is simultaneously an economy and a programming question. If it should go to another SE communality, please indicate me. In theory, GNU software is ...
Bregalad's user avatar
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9 votes
2 answers
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Does recycling lead to fewer jobs?

Say I buy a glass bottle, I can either put it in the landfill or recycle it. My understanding is, glass will breakdown into sand. (Not sure how well though, since we sometimes find glass from Roman ...
zooby's user avatar
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8 votes
4 answers
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Has the world become poorer?

This question is not backed by serious economic research but mainly by a very simple attempt to look at how the world economy has changed. I am asking whether and why the world has, over the past 50 ...
fishlein's user avatar
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8 votes
3 answers
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All else being equal, What is the value of job creation?

Job creation value Just to clarify, I have no experience, academic background or deep understanding of economics. Apologies for such a basic question but I couldn't find a real answer. I hear a lot ...
Anonymous's user avatar
8 votes
1 answer
884 views

What are the causes for the recent dramatic decline in productivity in the US

The recent Q2 release by the BLS on "Productivity and Costs", shows a big drop in productivity (the biggest ever since 1948): more work-hours but less output. Nonfarm business sector labor ...
d_e's user avatar
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8 votes
3 answers
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Why is Land not considered as a fixed capital?

As far as I know 'Fixed Capital' includes things which don't deteriorate or get used up upto a long, e.g. tools, machinery and building etc. My question is that since Land fulfills this criteria, why ...
user31782's user avatar
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8 votes
4 answers
294 views

Can higher working hours reduce productivity?

Are there studies about the impact on per-hour output (productivity) of increasing the number of hours worked each week by employees? If every employee works 3hrs/week longer (from 41 to 44hrs), does ...
Sider's user avatar
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6 votes
1 answer
627 views

Why has increased productivity over the last 100 years not affected how much people work?

If we are generally richer and more productive due to better technology and other factors, why do we still work so much? I understand that there are various incentives to work (e.g. implicit status ...
gsastry's user avatar
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6 votes
1 answer
134 views

Empirical ranking of firms based on productivity

I want to rank firms based on a metric, let's call it productivity. Theoretically, this firm productivity measure may be well defined. Empirically, however, data that account for all dimensions of ...
bsecon's user avatar
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6 votes
2 answers
174 views

Has Stack Overflow been economically beneficial to programmer productivity?

Has Stack Overflow an overall positive impact on programmers productivity? On one side, it takes time and effort to ask and answer questions -- thus decreasing productivity. On the other side, ...
Sklivvz's user avatar
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5 votes
4 answers
9k views

Labour Saving vs. Labour Augmenting - what is the difference?

It seems reasonable to say that technology generally increases output per unit of labour. Therefore in any factory which has installed new technology one can reasonably expect that for the same ...
beastofburden's user avatar
5 votes
2 answers
269 views

Can we see the computer age in the productivity statistics?

Robert Solow famously said: You can see the computer age everywhere but in the productivity statistics This quote is often linked with the productivity paradox (https://en.wikipedia.org/wiki/...
chatGPT's user avatar
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5 votes
2 answers
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Error while estimating a production function with prodest package in R

I have an unbalanced panel with 15063 firms between 2012 and 2018. I am using this code to estimate the production function with Levinsohn & Petrin method: ...
Jorge Paredes's user avatar
4 votes
1 answer
484 views

Difference between Value-Added TFP and Gross-Output TFP?

I am working with EU-KLEMS data, and I am using TFP growth as a proxy for technological change. However, there are 2 variables for TFP - TFP based on Gross Output and TFP based on Value Added. I ...
Badalyan's user avatar
4 votes
2 answers
367 views

Empirical explanation on divergence between productivity and wages since the 70s

There is a well know graph, that shows a tight link between productivity and wages, until the 70s, and a break of the link since: There's a lot of possible explanations for this, I keep hearing more ...
Guy Louzon's user avatar
4 votes
2 answers
295 views

Workforce productivity

If I would like to say, in a technical way, that the problem of a place is its lazy people, then I could say that its workforce productivity is low. However, "workforce productivity" is composed by ...
Delmonte's user avatar
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4 votes
1 answer
261 views

Can capital still be paid its marginal product in the absence of a homogeneous capital stock?

Thomas Piketty's best-selling book on inequality, "Capital in the Twenty-First Century" has attracted a lot of criticism on the right for its data analysis. Less well-known, however, is the criticism ...
Keshav Srinivasan's user avatar
4 votes
0 answers
162 views

CES aggregator for intermediates with heterogeneous productivity

I'm following Atkeson, Burstein (2019 JPE), and cannot understand the aggregation result. There is measure $M(z)$ of firms with productivity $z$, with production function $$ y(z) = z k(z)^\alpha l(z)^...
JaySingsBlue's user avatar
3 votes
1 answer
329 views

Steady-state savings rate

I'm having trouble with the steady-state savings rate type of problems. Here is the problem I'm stuck on: The production is $Y = 0.5*K^{1/3}(AN)^{2/3}$. If savings is $s$%, what are the steady-state ...
user40459's user avatar
3 votes
3 answers
175 views

If automation implicitly increases wealth, why is it generally considered undesirable?

When it comes to the subject of automation, I read that the wide majority of the arguments assume that the profits/savings "vanish", alongside the jobs loss. I see the reasoning above as flawed ...
Marcus's user avatar
  • 131
3 votes
2 answers
114 views

How to improve the underperforming construction productivity by correcting its market failures?

Globally, labor-productivity growth in construction has averaged only 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the ...
Übel Yildmar's user avatar
3 votes
1 answer
81 views

When does a high markup mean high productivity? Never?

I was reading this article in VoxEU, where the authors (one is a Professor of Economics at Harvard University) make the case that an increasing average mark-up has accounted for much of the late ...
An old man in the sea.'s user avatar
3 votes
3 answers
6k views

What are the causes of increase in productivity of labour?

This question has a specific context. While reading Adam Smith's The Wealth of Nations, edited, with notes and marginal summary by Edwin Cannan in 1904, one comes across the following lines on the ...
Madhur's user avatar
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3 votes
3 answers
383 views

Growth Accounting

In growth accounting the production function is defined as follows: $$Y= AF(K,L) $$ That means output $Y$ is dependent upon capital $K$, labour $L$ and technology $A$. Now to produce something, in ...
Rain's user avatar
  • 199
3 votes
1 answer
82 views

Intuition behind value added as TFP measure

In some papers the authors use value-added over capital and labor as TFP measure, what is the intuition behind this? For example, in one paper I just read the authors use $ \frac{VA}{(p_{K}K + p_{L}L)}...
futur3boy's user avatar
3 votes
1 answer
549 views

TFP estimation in R by using prodest and estprod packages

I am writing my Bachelor Thesis and I really need help with the TFP estimation. so far I have a dataset with log values of Value added (va), Labour (l), Capital (k), and Materials (m). The initial ...
Wadim iLchuk's user avatar
3 votes
0 answers
287 views

Arellano and Bond (1991) GMM estimation in R by using plm package

I am a last-year student at university, currently working on my Bachelor's (so still learning R), and I really hope that you would suggest a potential solution (even if to use Python). So, the main ...
Wadim iLchuk's user avatar
3 votes
0 answers
19 views

References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
marquisdecarabas's user avatar
2 votes
2 answers
68 views

Why low labour productivity for Govt Services in UK and USA in 2000s?

My labour productivity data for USA and UK show that the "Government services" sector for both countries are below their economies' average. This trend is observed in the 2000s. Are there any ...
user72728's user avatar
2 votes
2 answers
606 views

Why does entitlements leads to lower US productivity? [closed]

In a recent Bloomberg interview, Alan Greenspan suggested that entitlements leads to lower productivity, can you please explain it? What does 'capital stocks' mean? Does he means that because we ...
kambi's user avatar
  • 165
2 votes
1 answer
79 views

Human Capital Vs TFP

I'm interested in familiarizing myself with some of the intra-debates that have occurred over the years, having to do with Mankiw, Romer, Weil (1992) and Klenow, Rodriguez-Clare (1997). Some argue ...
Friendlyperson2020's user avatar
2 votes
2 answers
588 views

Why labor-augmenting technological progress increases employment and wages?

My textbook says that advances in technology typically raise the marginal product of labor and shift the labor demand curve to the right and calls it labor-augmenting technological advances. The book ...
boinka's user avatar
  • 21
2 votes
1 answer
103 views

Does credit really help an economy?

I'm reading Ray Dalio's How the Economic Machine Works, and although I understand the role of credit in an economy, I don't understand whether credit actually adds any value to an economy. Ray says ...
bugsyb's user avatar
  • 179
2 votes
2 answers
350 views

Inclusion of firms on the efficient frontier of a Production Possibility Set

I'm working through Cooper's Data Envelopment Analysis, and they are going over Production Possibility Sets. They present 9 firms, each with two inputs and one output: Graphically it easy to see why ...
Joseph's user avatar
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2 votes
2 answers
403 views

Why are imported Chinese products in India cheaper than those locally produced?

Why an imported Chinese product in India is cheaper compared to a locally manufactured item?
Vikram's user avatar
  • 129
2 votes
2 answers
130 views

Are prices part of total factor productivity?

I am trying to understand how production is related to income/profit and where do prices enter. Suppose there is a single firm with a Cobb-Douglas production technology: $$Y=AK^{\alpha}L^{\beta}$$ ...
Paul's user avatar
  • 145
2 votes
1 answer
37 views

Quarterly industry-level productivity growth?

Are there any quarterly data on industry-level productivity growth (i.e., by NAICS code) in the United States? I've looked around for a while but haven't been able to find anything. BLS publishes ...
sirallen's user avatar
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2 votes
0 answers
428 views

Arellano and Bond (1991) or Blundell and Bond (1998) in R estimation

I have the following problem with the Arellano and Bond (1991) or Blundell and Bond (1998) estimators in R using the plm package. I receive the following problem when trying to run the needed ...
Wadim iLchuk's user avatar
2 votes
0 answers
51 views

How can the number of hairdressers in the UK be up 50% since 2010?

In this recent article, The Economist argues that one of the reasons behind the anaemic recent wage growth in Britain is that the recent job growth has been concentrated in lower-productivity jobs and ...
Candamir's user avatar
  • 163
2 votes
0 answers
152 views

How does Austrian Economics define Labour Productivity?

Is there a specific Austrian definition in accordance to the concept of Labour Productivity? If Labour Productivity is too broad of a term, then I will qualify to be speaking about it in context of ...
Anon's user avatar
  • 241
2 votes
1 answer
87 views

Why in Italy and Spain, as productivity grows, wages don't grow too?

As you can see in this report: https://rpubs.com/lovepeacejoy404/crescita_salariale between labor productivity and the average wage there is a correlation of 76% (Pearson index), while with the ...
gianni404's user avatar
1 vote
2 answers
2k views

What is establishment-level data

National level or aggregate level data and firm-level data are self explanatory. I have seen certain papers on productivity analysis as well as other topics which refer to "establishment-level" data. ...
Rain's user avatar
  • 199
1 vote
1 answer
158 views

etymology of TFP (total factor productivity)

In economics, total-factor productivity (TFP), also called multi-factor productivity, is usually measured as the ratio of aggregate output (e.g., GDP) to aggregate inputs.1 Under some simplifications ...
H2ONaCl's user avatar
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1 vote
1 answer
111 views

Has worker productivity decreased since the election of Donald Trump?

Anecdotally, I know that myself and others have felt distracted, depressed and anxious since the election of Donald Trump. Are there any studies that have objectively sought to measure worker ...
dwjohnston's user avatar
  • 2,036
1 vote
2 answers
128 views

Basic New Keynesian model with flexible price

I would like to know what would be the response of variables in the Basic New Keynesian model but with flexible prices (ie not with Calvo pricing). For example I have troubles to see how having ...
BAL's user avatar
  • 457
1 vote
3 answers
80 views

GDP per Installed Computing Facilities

I would like to quantify the importance of computing power for economic aggregate output in an economy in a "simple" GDP-to-installed-CPU ratio. The idea is to calculate a measure similar to GDP-to-...
Murphy's user avatar
  • 59
1 vote
1 answer
2k views

If the Number of Workers in an Economy Doubled, Would Productivity Fall to Half its Former Value?

I am assuming that the production function for the economy has constant returns to scale, and all other inputs stay the same. These are the steps I have made to try to answer this question: 1) Y/L = ...
Kelsey's user avatar
  • 201