Mapping prices into productivity in multisector growth models

  • Ngai L
  • Samaniego R
  • 15

    Readers

    Mendeley users who have this article in their library.
  • 6

    Citations

    Citations of this article.

Abstract

This paper argues that factor demand linkages are crucial in the transmission of both sectoral and aggregate shocks. We show this using a panel of highly disaggregated manufacturing sectors together with sectoral structural VARs. When sectoral interactions are explicitly accounted for, a contemporaneous technology shock to all manufacturing sectors implies a positive response in both output and hours at the aggregate level. Otherwise, there is a negative correlation as in much of the existing literature. Furthermore, we find that technology shocks are important drivers of business cycles.

Author-supplied keywords

  • Growth accounting
  • Intermediate goods
  • Investment-specific technical change
  • Multisector growth models
  • Value added

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • L. Rachel Ngai

  • Roberto M. Samaniego

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free