 | Professor of Economics, Boston College and NBER Verified email at bc.edu Cited by 5149 |
S Basu… - Journal of political economy, 1997 - JSTOR
A typical (roughly) two-digit industry in the United States appears to have constant or slightly
decreasing returns to scale. Three puzzles emerge, however. First, estimates often rise at
higher levels of aggregation. Second, apparent decreasing returns contradicts evidence of ...
Yes. We construct a measure of aggregate technology change, controlling for varying
utilization of capital and labor, non-constant returns and imperfect competition, and
aggregation effects. On impact, when technology improves, input use and non-residential ...
S Basu - The Quarterly Journal of Economics, 1996 - qje.oxfordjournals.org
Abstract This paper investigates the relative importance of cyclical fluctuations in labor and
capital utilization, increasing returns to scale, and technology shocks as explanations for
procyclical productivity. It exploits the intuition that materials inputs do not have variable ...
S Basu… - The Quarterly Journal of Economics, 1998 - qje.oxfordjournals.org
Abstract We model growth and technology transfer in a world where technologies are
specific to particular combinations of inputs. Unlike the usual specification, our model does
not imply that an improvement in one technique for producing a given good improves all ...
S Basu… - Journal of Monetary Economics, 1995 - Elsevier
Using data on gross output for two-digit manufacturing industries, we find that an increase in
the output of one manufacturing sector has little or no significant effect on the productivity of
other sectors. Using value-added data, however, we confirm the results of previous ...
In this paper, we derive and estimate relationships governing variable utilization of capital
and labor for a firm solving a dynamic cost-minimization problem. Our method allows for (i)
imperfect competition,(ii) increasing returns to scale,(iii) unobserved changes in utilization, ...
This paper presents an aggregate demand-driven model of business cycles that provides a
new explanation for the procyclicality of productivity, and simultaneously predicts large
welfare losses from monetary non-neutrality. The key features of the model are an input- ...
After the mid-1990s, labor and total factor productivity (TFP) accelerated in the United States
but not in most other major economies. A growing body of research has explored the
robustness of the US acceleration, generally concluding that the acceleration reflects an ...
Measured productivity growth increased substantially during the second half of the 1990s.
This paper examines whether this increase owes to an increase in the rate of technological
change or whether it can be explained by non-technological factors relating to factor ...
This paper examines business cycles theoretically and empirically, with a quantitative study
based on experience over the long run and in a cross section of countries. Several major
questions in business cycle theory are explored. Theoretical concerns indicate that the ...
S Basu… - European Economic Review, 2002 - Elsevier
Aggregate productivity and aggregate technology are meaningful but distinct concepts. We
show that a slightly modified Solow productivity residual measures changes in economic
welfare, even when productivity and technology differ because of distortions such as ...
Productivity is procyclical. That is, whether measured as labor productivity or total factor
productivity, productivity rises in booms and falls in recessions. Recent macroeconomic
literature views this stylized fact of procyclical productivity as an essential feature of ...
ABSTRACT We estimate that returns to scale are close to constant in two-digit gross output
data. Value-added data appear instead to give significant increasing returns. We show why,
with imperfect competition, valueadded estimates are in general meaningless. We use ...
S Basu… - manuscript, University of Michigan, 2002 - cepr.org
Abstract: The fact that permanent increases in the real wage have very little effect on labor
supply implies a parameter restriction in the consumption Euler equation augmented by
predictable movements in the quantity of labor. This parameter restriction is not rejected ...
Explanations of procyclical productivity play a key role in a variety of business-cycle models.
Most of these models, however, explain this procyclicality within a representative-firm
paradigm. This procedure is misleading. We decompose aggregate productivity changes ...
S Basu… - German Economic Review, 2007 - Wiley Online Library
Abstract. Many people point to information and communications technology (ICT) as the key
for understanding the acceleration in productivity in the United States since the mid-1990s.
Stories of ICT as a 'general-purpose technology'suggest that measured total factor ...
JC Wang,
S Basu… - 2009 - nber.org
Abstract: This paper addresses the proper measurement of financial service output that is
not priced explicitly. It shows how to impute nominal service output from financial
intermediaries' interest income, and how to construct price indices for those financial ...
S Basu - Conference series-Federal Reserve Bank of Boston, 1998 - bostonfed.org
How well do current business-cycle models explain historical output fluctuations? Almost a
decade has passed since Plosser (1989) claimed that a simple real-business-cycle (RBC)
model could generate simulated output with a correlation of 0.87 with actual output over ...
S Basu… - Unpublished manuscript, 2003 - finance.wharton.upenn.edu
Abstract We show that simple “New Keynesian” models with capital but without investment
frictions have counterfactual predictions regarding the short-run effects of fiscal policy
shocks: fiscal expansions lower output, employment, and the real interest rate in these ...
Banks often charge implicitly for their services via interest spreads, instead of explicit fees.
Much of bank output thus has to be estimated indirectly. In contrast to current statistical
practice, dynamic optimizing models of banks argue that compensation for bearing ...
A Barattieri,
S Basu… - 2010 - nber.org
Nominal wage stickiness is an important component of recent medium-scale structural
macroeconomic models, but to date there has been little microeconomic evidence
supporting the assumption of sluggish nominal wage adjustment. We present evidence on ...
Abstract: Productivity rises in booms and falls in recessions. There are four main
explanations for procyclical productivity:(i) procyclical technology shocks,(ii) widespread
imperfect competition and increasing returns,(iii) variable utilization of inputs over the ...
S Basu… - Federal Reserve Bank of St. Louis …, 2009 - c.research.stlouisfed.org
Potential output is an important concept in economics. Policymakers often use a one-sector
neoclassical model to think about long-run growth, and they often assume that potential
output is a smooth series in the short run—approximated by a medium-or long-run ...
JC Wang… - 2008 - nber.org
This paper makes three points regarding the proper measurement of the output of financial
intermediaries. Two of them concern the measurement of nominal financial output,
especially banking output. First, we show that, to impute the nominal value of implicitly ...
S Basu - Working Papers, 1993 - econpapers.repec.org
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Procyclical Productivity: Overhead Inputs or Cyclical Utilization. Susanto Basu (). Working
Papers from Michigan - Center for Research on Economic & Social Theory. ...
S Basu,
J Fernald, N Oulton, S Srinivasan… - 2003 - en.scientificcommons.org
Abstract We argue that unmeasured investments in intangible organizational capital
associated with the role of information and communications technology (ICT) as a general
purpose technology'can explain the divergent US and UK TFP performance after 1995. ...
Abstract: Financial institutions provide their customers a variety of unpriced services and
cover their costs through interest margins—the interest rates they receive on assets are
generally higher than the rates they pay on liabilities. In particular, banks pay below-public ...
We prove that in a closed economy without distortionary taxation, the welfare of a
representative consumer is summarized to a first order by the current and expected future
values of the Solow productivity residual in level and by the initial endowment of capital. ...
Abstract: We provide a unified framework that links recent (and more traditional) literature on
growth accounting with recent literature on the importance of shocks to the economy's ability
to produce different final goods. Recent macroeconomic literature has used relative prices ...
[CITATION] rAre Technology Improvements Contractionary? s
S Basu, J Fernald… - Discussion Papers, 1998
S Basu… - 1996 - 141.213.232.243
Countries making the transition to a market economy often experience an increase in
corruption along with an increase in growth. This observation is puzzling in the context of
current models, which emphasize the destructive nature of corruption. We present a model ...
[CITATION] e Weil, DN (1998),“
S Basu - … Technology and Growth”, Quarterly Journal of …
S Basu - Journal of Monetary Economics, 2005 - ideas.repec.org
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S Basu - NBER Macroeconomics Annual, 1995 - JSTOR
This paper sets itself an ambitious task: it attempts to explain a fundamental stylized fact of
modern macroeconomics-the procyclicality of the Solow residual-using an empirical model
that nests the three main explanations for this fact: technology shocks, increasing returns ...
S Basu… - Boston College Working Papers in Economics, 2011 - nber.org
Abstract This paper examines the role of uncertainty shocks in a one-sector, representative-
agent dynamic stochastic general-equilibrium model. When prices are flexible, uncertainty
shocks are not capable of producing business-cycle comovements among key macro ...
S Basu - Carnegie-Rochester Conference Series on Public …, 2000 - econpapers.repec.org
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Understanding how price responds to costs and production: A comment. Susanto Basu ().
Carnegie-Rochester Conference Series on Public Policy, 2000, vol. 52, issue 1, pages 79-85. ...
[CITATION] Productivity growth in the 1990s: technology, utilization
S Basu, JG Fernald… - 2000 - or adjustment
[CITATION] Why is productivity procyclical?
S Basu… - 2000
[CITATION] Technology, Utilization, or Adjustment? Productivity Growth in the 1990s
S Basu, JG Fernald… - NBER working paper, 2001
[CITATION] Aggregate production function failures
S Basu, JG Fernald… - Manuscript, 1996
[CITATION] mProcyclical Productivity: Overhead Inputs or Cyclical Utilization? n, The University of Michigan
S Basu - 1993 - mimeo
[CITATION] Why is Productivity Procyclical
JG Fernald… - Why do we Care, 1999
[CITATION] Are Technology Improvements Contractionary
B Susanto, JG Fernald… - 1999 - Manuscript
[CITATION] Intermediate Goods, Menu Costs, and Business Cycles
S Basu - 1992 - mimeo
[CITATION] VWhy Is Productivity Procyclical? Why Do We Care? xIn New Directions in Productivity Analysis, edited by Edwin Dean, Michael Harper and Charles …
S Basu… - Studies in Income and Wealth, 2001
[CITATION] Discussion of 'Technology in Growth Theory'
S Basu - Technology and Growth. Federal Reserve Bank of …, 1996
[CITATION] The Value of Risk: Measuring the Services ofCommercial Banks
S Basu, R Inklaar… - Federal Reserve Bank of Boston Working Paper, 2008
[CITATION] Why Is Productivity Procyclical? Why Do We Care?''NBER Working Paper 7940
S Basu… - 2001
S Basu… - Papers, 1993 - ideas.repec.org
No abstract is available for this item. ... To our knowledge, this item is not available for
download. To find whether it is available, there are three options: 1. Check below under "Related
research" whether another version of this item is available online. 2. Check on the ...
ABSTRACT This paper addresses the issue of how to give optimal advice about monetary
policy when it is known that the advice may not be heeded. We examine a simple
macroeconomic model in which monetary policy has the ability to stabilize output by ...
[CITATION] The case of the missing productivity growth: or: Why has productivity accelerated in the United States but not in the United Kingdom?
[CITATION] ICT as a general-purpose technology: Evidence from US industry data
S Basu… - Conference on The Determinants of Productivity …, 2006
N Gershun, SG Harrison, F Avalos… - Macroeconomic …, 2008 - Cambridge Univ Press
We explore asset pricing in the context of the one-sector Benhabib-Farmer-Guo (BFG)
model with increasing returns to scale in production and compare our results with financial
implications of the standard dynamic stochastic general equilibrium (DSGE) model. Our ...
[CITATION] Constant Returns and Small Markups in the US Manufacturing. International Finance Discussion Paper 483, Board of Governors of the Federal Reserve …
S Basu… - 1994
[CITATION] Sectoral Technical Change
S Basu, J Fernald, JDM Fisher… - work in progress presented at, 2004
[CITATION] Returns to Scale in US Production: Estimates and Implications," forthcoming in Journal of Political Economy
S Basu… - 1997
[CITATION] 0Investment Planning Costs and the Effects of Monetary and Fiscal Policy, 1 University of Michigan
S Basu… - 2003 - mimeo
[CITATION] oTechnology and Business Cycles: How Well Do Standard Models Explain The Facts? pin VBeyond Shocks: What Causes Business Cycles
S Basu - V Conferences Series, 1998
[CITATION] Srinivasan Sylaja (2004).“The Case of the Missing Productivity Growth, or Does Information Technology Explain Why Productivity Accelerated in the …
S Basu, JG Fernald… - NBER Macroeconomics Annual, 2003
[CITATION] Technology and Business Cycles: How Well Do Standard Models Explain the Facts?
B Susanto - Beyond Shocks: What Causes Business Cycles, 1998
[CITATION] John. G. Fernald, and Miles Kimball (1999).“Are Technology Improvements Contractionary?”
S Basu - International Finance Discussion Paper
[CITATION] mankiw Gregory N, and Weil David N
B Susanto… - Optimal Advide for Monetary Policy, JMCB, 1990
[CITATION] oAre Technology Im% provements Contractionary? pInternational Finance Discussion Papers No 625
S Basu, J Fernald… - Board of Governors of the Federal Reserve System, 1998
[CITATION] Are Productivity Improvements Contractionary?
S Basu, JG Fernald… - University of Michigan, 1998
[CITATION] Productive Externalities in US Manufacturing: Do They Exist and Are They Important?'
S Basu… - Harvard University, Cambridge, MA, 1992
[CITATION] Corruption and Reform
[CITATION] Sylaja Srinivasan (2003)." The Case of the Missing Productivty Growth: Or, Does Information Technology Explain why Productivity Accelerated in the US …
S Basu, JG Fernald… - NBER Working paper
RC Acharya… - 2nd ICTNET Workshop, London, 2011 - community.oecd.org
Abstract What accounts for the exceptional TFP growth performance in some ICT-using
industries after the mid-1990s in the US and to some extent some in other OECD countries?
Most commentators have pointed to enormous productivity gains in the production of ...
[CITATION] Frontiers of business cycle research
TF Cooley, S Basu - Journal of …, 1996 - Nashville [etc.]: American Economic …
S Basu… - 2005 Meeting Papers, 2005 - ideas.repec.org
We describe new evidence that technological change is biased toward producing durables
goods. Existing evidence in favor of the importance of change to growth and business cycles
is based on the price deflators for investment and consumption goods. Our evidence is ...
[CITATION] NATIONAL BUREAU OF ECONOMIC RESEARCH, INC.
S BASU… - 1998
S Basu… - c.federalreserve.gov
Abstract: Aggregate productivity and aggregate technology are meaningful but distinct
concepts. We show that a slightly-modified Solow productivity residual measures changes in
economic welfare, even when productivity and technology differ because of distortions ...
ABSTRACT We show how to relate the welfare of a country's infinitely-lived representative
consumer to observable aggregate data. To a first order, welfare is summarized by total
factor productivity and by the capital stock per capita. These variables suffice to calculate ...
LA Adams,
K Bagwell, RE Baldwin… - New directions in …, 1995 - books.google.com
CONTRIBUTORS AND CONFERENCE PARTICIPANTS Laurel A. Adams Northwestern University
Kyle Bagwell Northwestern University Robert E. Baldwin University of Wisconsin Robert Barsky
University of Michigan Susanto Basu University of Michigan Jeffrey H. Bergstrand ...
Abstract: A typical (roughly) two-digit industry in the United States appears to have constant
or slightly decreasing returns to scale. Three puzzles emerge, however. First, estimates tend
to rise at higher levels of aggregation. Second, estimates of decreasing returns in many ...
S Basu - 2011 - papers.ssrn.com
In this chapter, Fixler takes on a very important and very challenging task—thinking hard
about the measure of nominal financial sector output, and decomposing that output into a
price index and a volume index. This is a long-standing problem in the economics of ...
LJ Álvarez, A Ang, G Ascari, A Atkeson… - … Inflation and the … - down.cenet.org.cn
Mac′ kowiak, Bartosz behavioral analysis and, 261 historical perspective on Phillips curve
and, 25, 48–51, 55 King comments on, 333–348 microeconomic price data implications and,
291–332 Midrigan comments on, 351–357 Mankiw, N. Gregory, xiii, 207, 384 historical ...
S Basu, L Pascali&… - 2009 - agenda.unibocconi.it
Abstract We prove that the change in welfare of a representative consumer is summarized
by the current and expected future values of the standard Solow productivity residual. The
equivalence holds if the representative household maximizes utility while taking prices ...
S Basu - publications.gc.ca
Abstract What accounts for the exceptional TFP growth performance of the US and to some
extent some of the other OECD countries after the mid-1990s? Most commentators have
pointed to enormous productivity gains in the production of Information and ...
[CITATION] 1994 by Susanto Basu. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that …
[CITATION] Business Cycles in International Historical Perspective (Digest Summary)
S Basu… - CFA Digest, 2000 - CFA Institute
Abstract Solow's paradox has disappeared in the United States but remains alive and well in
the United Kingdom. In particular, the UK experienced an information and communications
technology (ICT) investment boom in the 1990s in parallel with the US, but measured total ...
S BASU - NBER Macroeconomics Annual 2002, 2003 - books.google.com
146. BASU impulses and propagation mechanisms, and gives the somewhat misleading
impression that we understand the sources of productivity growth better than we actually do.
DeLong's paper actually takes the rate of technical change and its recent acceleration as ...
Abstract We prove that in a closed economy without distortionary taxation, the welfare of a
representative consumer is summarized to a first order by the current and expected future
values of the log level Solow productivity residual and by the initial endowment of capital. ...
S Basu - publications.gc.ca
Abstract Canada is one of the few OECD countries to trail the United States in both the level
and growth rate of productivity over a long period of time (1980-2005). This paper suggests
a method for breaking down this productivity gap into three components: differences in ...
L Pascali,
F Schiantarelli, L Serven… - Research Working …, 2010 - ingentaconnect.com
Abstract: A considerable literature has focused on the determinants of total factor productivity
(TFP), prompted by the empirical finding that TFP accounts for the bulk of long-term growth.
This paper offers a deeper reason for such focus: the welfare of a representative ...
[CITATION] Board of Trustees, Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, 99, 100
L Boone, AJ Auerbauch, M Bailey… - … of fiscal policy, 2006 - The MIT Press
Abstract: We estimate that returns to scale are close to constant in two-digit gross output
data. Value-added data appear instead to give significant increasing returns. We show why,
with imperfect competition, value-added estimates are in general meaningless. We use ...
Abstract: Using data on gross output for two-digit manufacturing industries, we find that an
increase in the output of one manufacturing sector has little or no significant effect on the
productivity of other sectors. Using value-added data, however, we confirm the results of ...
S Basu… - 1995 - federalreserve.gov
Abstract Explanations of procyclical productivity play a key role in a variety of business-cycle
models. Most of these models, however, explain this procyclicality within a representative-
firm paradigm. This procedure is misleading. We decompose aggregate productivity ...
[CITATION] Understanding how price responds to costs and production
S Basu - Carnegie-Rochester Conference Series on Public …, 2004 - Elsevier Science
S Basu - NBER Macroeconomics Annual, 2002 - JSTOR
Economists are not particularly good at understanding large, one-time structural changes.
We are not notably successful at working in real time. And despite much effort, especially
over the past 20 years, we still have no generally accepted understanding of the ...
[CITATION] Austria, Myrna, 146 Avila, John Lawrence, 146 Aw, Bee Yan, 198n21, 310n6, 312, 312n9, 313n10, 314 Baily, Martin Neil, 198, 199, 247n13, 310n6
JR Baldwin, P Barnes… - … in East Asia, 2004 - University Of Chicago Press
Abstract This paper investigates the interaction between technological leadership and
spillovers through a theoretical model where technological followers benefit from spillovers
from a technological leader. Simulations of the model show that technological leadership ...
[CITATION] Money, macroeconomics, and economic policy, ed. by William C. Brainard..: Cambridge[ua], MIT Press, 1991
S Basu - Journal of economic literature, 1993
JC Wang, S Basu… - 2011 - papers.ssrn.com
In many service industries, measuring real output is a challenge, because it is difficult to
measure quality-adjusted prices. In financial services, however, there is not even an agreed
upon conceptual basis for measuring nominal, let alone real, output. 1 This chapter ...
Abstract: Yes. We construct a measure of aggregate technology change, controlling for
imperfect competition, varying utilization of capital and labor, and aggregation effects. On
impact, when technology improves, input use falls sharply, and output may fall slightly. ...
[CITATION] UNIVERSITY OF MICHIGAN AND NBER/FEDERAL RESERVE
S Basu, IG Fernald, N Oulton… - The economics of …, 2009 - Edward Elgar Pub
MN Baily, VE Ball, S Basu, ER Dean, WE Diewert… - Ann Arbor - nber.org
... V. Eldon Ball Economic Research Service US Department of Agriculture 1800 M Street,
NW Suite 3 Washington, DC 20036-5831 Susanto Basu Department of Economics
University of Michigan 611 Tappan Street Ann Arbor, MI 48109-1220 ...
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