A Richer Understanding of Australia's Productivity Performance in the 1990s: Improved Estimates Based Upon Firm-level Panel Data

Robert Breunig, Marn-Heong Wong

    Research output: Contribution to journalArticle

    Abstract

    Australian industry is characterised by differences across firms, entry of new firms and exit of unsuccessful firms. These facts highlight the inappropriateness of measuring productivity using aggregate production functions based upon representative firms. In this study, we model heterogeneous firms which change over time. We model the interrelationship between productivity shocks, input choices and decisions to cease production. Firm-level data provides production function estimates for 25 two-digit Australian industries. A new aggregation method for industry-level data allows us to separate productivity changes from output composition changes. Our study sheds new light on the Australian productivity performance.
    Original languageEnglish
    Pages (from-to)157-176
    JournalEconomic Record
    Volume84
    Issue number265
    DOIs
    Publication statusPublished - 2008

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