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10.1016/j.econmod.2020.09.025

http://scihub22266oqcxt.onion/10.1016/j.econmod.2020.09.025
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33041420!7539064!33041420
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suck abstract from ncbi

pmid33041420      Econ+Model 2021 ; 94 (?): 130-138
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  • Recessions and total factor productivity: Evidence from sectoral data #MMPMID33041420
  • Furceri D; Kilic Celik S; Jalles JT; Koloskova K
  • Econ Model 2021[Jan]; 94 (?): 130-138 PMID33041420show ga
  • The recent COVID-19 crisis has generated a concern that productivity (which was already at historically low levels) may further decline. From a theoretical standpoint, the recessions-total factor productivity (TFP) nexus is ambiguous a priori. This paper empirically examines the dynamic impact of recessions on TFP. We compute a new measure of utilization-adjusted productivity from a sample of 24 industries in 18 advanced economies between 1970 and 2014. Resorting to the local projection method we trace out the dynamic short to medium-term impact of such recessionary shocks. We find that deep recessions lead to a permanent deterioration in the level of total factor productivity. This effect is driven by the increase in resource misallocation across different sectors.
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