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A Low-Cost Method of Measuring the In Situ Primary Productivity of Periphyton Communities of Lentic Waters
Published on: December 16, 2022
Recessions and total factor productivity: Evidence from sectoral data
Davide Furceri1, Sinem Kilic Celik2, João Tovar Jalles3,4,5,6
1International Monetary Fund, Research Department, 700 19th Street NW, Washington, DC 20431, USA.
Abstract:
The recent COVID-19 crisis has generated a concern that productivity (which was already at historically low levels) may further decline. From a theoretical standpoint, the recessions-total factor productivity (TFP) nexus is ambiguous à priori. This paper empirically examines the dynamic impact of recessions on TFP. We compute a new measure of utilization-adjusted productivity from a sample of 24 industries in 18 advanced economies between 1970 and 2014. Resorting to the local projection method we trace out the dynamic short to medium-term impact of such recessionary shocks. We find that deep recessions lead to a permanent deterioration in the level of total factor productivity. This effect is driven by the increase in resource misallocation across different sectors.
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