Increasing Returns, Labour Utilization and Externalities: Procyclical Productivity in the United States and Japan
In: Economica, Band 67, Heft 266, S. 229-244
ISSN: 1468-0335
This paper investigates procyclical productivity and attempts to discriminate among several competing explanations. The study focuses on the United States and Japan, since the different industrial relations in these two economies serve to cast a sharper light on the procyclical productivity debate. Labour hoarding, evaluated through the introduction of a labour utilization proxy, proves to be an important influence. The interpretation of the role of external economies remains an open issue.