Endogenous Technology Adoption and R&D as Sources of Business Cycle Persistence
By D. Anzoategui, Diego A. Comin, M. Gertler, José Martínez. American Economic Journal: Macroeconomics, 2019
306 citations recorded by the source corpus.
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. (JEL E23, E24, E32, E44, G01)
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/d86687cf7398e85aa7b317cf067125a7278170d4
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In Economics and Econometrics
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Citations in the corpus
- Should We Reject the Natural Rate Hypothesis (2018, background): “Anzaotegui et al. (2016) look at the effects of (detrended) GDP per person on the speed of adoption of 26 technologies in the United States and the United Kingdom over the period 1947 to 2003.”
- Disentangling the Effects of a Banking Crisis: Evidence from German Firms and Counties (2018, background): “(2015) and Anzoategui et al. (2017) interpret the productivity slowdown following the Great Recession as an endogenous response to weak aggregate demand.”
- Macroeconomic Implications of COVID-19: Can Negative Supply Shocks Cause Demand Shortages? (2020, methodology): “24 This mechanism is similar to Anzoategui et al. (2019) and Benigno and Fornaro (2018), where growth, rather than future unemployment, is responsible for the amplification.”
- Innovation, Productivity, and Monetary Policy (2017, methodology): “In that respect, our model is much closer to the one in Anzoategui et al. (2017), in turn based on Comin and Gertler (2006).”