TY - JOUR
T1 - Endogenous technology adoption and R & D as sources of business cycle persistence
AU - Anzoategui, Diego
AU - Comin, Diego
AU - Gertler, Mark
AU - Martinez, Joseba
N1 - Funding Information:
*Anzoategui: Rutgers University Department of Economics, 75 Hamilton Street, New Jersey Hall (College Ave Campus), New Brunswick, NJ 08901-1248 (email: diego.anzoategui@rutgers.edu); Comin: Dartmouth College Department of Economics, 6106 Rockefeller Hall, Hanover, NH 03755, NBER, and CEPR (email: diego.comin@ dartmouth.edu); Gertler: New York University Department of Economics, 19 W 4th Street, New York, NY 10012 and NBER (email: mark.gertler@nyu.edu); Martinez: London Business School Department of Economics, Regents Park, London, NW1 4SA, UK (email: joseba.martinez@gmail.com). Giorgio Primiceri was coeditor for this article. Thanks to Francesco Bianchi, Bob Hall, Howard Kung, and Chris Tonetti for helpful comments. Financial assistance from the NSF is greatly appreciated (grant number 1262249).
Publisher Copyright:
© 2019 American Economic Association.
PY - 2019/7/1
Y1 - 2019/7/1
N2 - 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 postcrisis slowdown of capacity growth. More generally, we provide insight into why recoveries from financial crises may be so slow.
AB - 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 postcrisis slowdown of capacity growth. More generally, we provide insight into why recoveries from financial crises may be so slow.
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U2 - 10.1257/mac.20170269
DO - 10.1257/mac.20170269
M3 - Article
AN - SCOPUS:85068174856
SN - 1945-7707
VL - 11
SP - 67
EP - 110
JO - American Economic Journal: Macroeconomics
JF - American Economic Journal: Macroeconomics
IS - 3
ER -