Do Technology Shocks Lead to Productivity Slowdowns? Evidence from Patent Data

January 1, 2008

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Format: Chicago

Lone Engbo Christiansen. Do Technology Shocks Lead to Productivity Slowdowns? Evidence from Patent Data, (USA: International Monetary Fund, 2008) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper provides empirical evidence on the response of labor productivity to the arrival of new inventions. The benchmark measure of technological progress is given by data on patent applications in the U.S. over the period 1889-2002. The analysis shows that labor productivity may temporarily fall below trend after technological progress. However, the effects on productivity differ between the pre- and post-World War II periods. The pre-war period shows evidence of a productivity slowdown as a result of the arrival of new technology, whereas the post-World War II period does not. Positive effects of technology shocks tend to show up sooner in the productivity data in the later period.

Subject: Emerging technologies, Labor productivity, Productivity, Technological innovation, Technology

Keywords: Business cycle, Dummy variable, Time series, Total factor productivity, WP

Publication Details

Pages:

54
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/024
Stock No:

WPIEA2008024
ISBN:

9781451868869
ISSN:

1018-5941

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