RCAPS Current Research Seminar *Prof. KIM Sangho
Jul
17
| Time/date: | Wednesday, July 17, 2013. 14:15-15:50 |
|---|---|
| Venue: | RCAPS Conference Room A (B bldg. 2F) @APU |
| Speakers: | Prof. KIM Sangho (College of International Management, APU) |
| Language: | English |
| Lecture Title | Estimating Productivity Growth in the Korean Economy without Restrictive Assumptions |
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Abstract:
This study eliminates the effects of markup, returns to scale, and capital utilization from the Solow residual for Korea to derive an alternative measure for productivity. Empirical results show that markup generates significant bias in the Solow residual, and that the alternative productivity measure is greater than the residual. Furthermore, money supply Granger-causes the Solow residuals but does not Granger-cause the alternative measure, suggesting that the new productivity measure is consistent with the neutrality of money. The results contradict the presumption that the Solow residual with variable capital utilization represents true technology shocks because it is orthogonal to demand shocks.
*This seminar will be held in English.
This study eliminates the effects of markup, returns to scale, and capital utilization from the Solow residual for Korea to derive an alternative measure for productivity. Empirical results show that markup generates significant bias in the Solow residual, and that the alternative productivity measure is greater than the residual. Furthermore, money supply Granger-causes the Solow residuals but does not Granger-cause the alternative measure, suggesting that the new productivity measure is consistent with the neutrality of money. The results contradict the presumption that the Solow residual with variable capital utilization represents true technology shocks because it is orthogonal to demand shocks.
*This seminar will be held in English.
