Anzoategui, D, Comin, D, Gertler, M and Martinez, J (2019) Endogenous Technology Adoption and R&D as Sources of Business Cycle Persistence. American Economic Journal: Macroeconomics, 11 (3). pp. 67-110. ISSN 1945-7707
Abstract
We examine the hypothesis that the slowdown in productivity following the Great Recession was in significant part an endogenous response to the contraction in demand that induced the downturn. We motivate, develop and estimate a model with an endogenous TFP mechanism that allows for costly development and adoption of technologies. Our main finding is that a significant fraction of the post-Great Recession fall in productivity was an endogenous phenomenon, suggesting that demand factors played an important role in the post-crisis slowdown of capacity growth. More generally, we provide insight into why recoveries from financial crises may be so slow.
More Details
Item Type: | Article |
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Subject Areas: | Economics |
Date Deposited: | 28 Nov 2018 11:42 |
Date of first compliant deposit: | 28 Nov 2018 |
Subjects: |
Financial markets Macroeconomics Business cycles Employment |
Last Modified: | 05 Nov 2024 02:56 |
URI: | https://lbsresearch.london.edu/id/eprint/1035 |