Year: 2008
Type: article
Abstract: :\nThis paper describes firms' output and factor demand before, during and after episodes of lumpy\ninvestments using a rich employer-employee panel data set for two manufacturing industries and one\nservice industry. We focus on the simultaneous adjustment of capital, materials, man-hours, as well\nas the skill composition and hourly cost of labour. The investment spikes lead to roughly proportional\nchanges in sales, labour and materials, while capital intensity increases significantly. Capital\nadjustments are found to be smoother in the service industry than in the two manufacturing\nindustries, a difference that may be related to the labour intensity in the service industry. Finally, the\nchanges in productivity associated with episodes of investment spikes are small, indicating that\nproductivity improvements are related to learning-by-doing rather than instantaneous technological\nchanges through investment spikes.
Source: Oxford Economic Papers
DOI: 10.1093/oep/gpn026
Authors: O. A. Nilsen, A. Raknerud, M. Rybalka, T. Skjerpen
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Funder: Norges Forskningsråd
OpenAlex ID: W2154159593