Toward a BEA-BLS integrated industry-level production account for 1947–2016

Eldridge, Lucy P.; Garner, Corby; Howells, Thomas F.; Moyer, Brian C.; Russell, Matthew B.; Samuels, Jon D.; Straßner, Erich; Wasshausen, David

doi:10.1016/b978-0-12-817596-5.00011-1

Cited by 5 publications

(2 citation statements)

References 3 publications

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“…The red and purple lines plot the labor shares for manufacturing, and retail and wholesale trade. Data from the BEA-BLS integrated industry-level production account (Eldridge et al, 2020).…”

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Not a Typical Firm: The Joint Dynamics of Firms, Labor Shares, and Capital–Labor Substitution

Hubmer¹,

Restrepo²

2021

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While the US labor share has declined, especially in manufacturing and retail, the labor share of a typical firm has increased. This paper introduces a model where firms incur fixed costs to automate tasks. In response to lower capital prices, the model reproduces the labor share dynamics observed in the data: large firms automate more tasks, reducing the aggregate labor share; while the median firm continues to operate a labor-intensive technology with a rising labor share. Using our model, we decompose the labor share decline and the rise in concentration into a part driven by lower capital prices and a part driven by sales reallocation to more productive higher-markup firms. Reallocation played a minor role in explaining the labor share decline in manufacturing but an important role in retail and other sectors during 1982-2012. These conclusions are in line with estimates of markups and capital elasticities from Compustat.

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“…The yellow line plots a counterfactual labor share holding industry shares in GDP constant at 1982 values.The red and purple lines plot the labor shares for manufacturing, and retail and wholesale trade. Data from the BEA-BLS integrated industry-level production account(Eldridge et al, 2020).…”

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confidence: 99%

Not a Typical Firm: The Joint Dynamics of Firms, Labor Shares, and Capital–Labor Substitution

Hubmer¹,

Restrepo²

2021

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To chain or not to chain? measuring real GDP in the US and the choice of index number

Oulton

2024

J Prod Anal

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National Statistical Institutes (NSIs) in advanced countries have generally adopted chain-linking in their national accounts. The United States uses a chained Fisher, an example of a superlative index number, in its national accounts. However the Fisher is only one of an infinite number of superlative index numbers. So an important issue is how sensitive are the estimates of output growth to the choice of index number. This issue is analysed by examining data from the BEA/BLS industry-level integrated production account, 1987–2020. Estimates of superlative and other index numbers are presented for this dataset. The sensitivity of real GDP growth to the value of the crucial parameter in a superlative index number is tested. The extent to which the desirable characteristics of value consistency and aggregation consistency are satisfied for different superlative index numbers is also analysed. The desirability of chain-linking does not follow automatically just from the use of superlative indices. So I also compare chained and unchained versions of these same index numbers. Finally, Europe uses a different approach to output measurement to the US, chained Laspeyres versus chained Fisher. I look at how different US estimates would be if they employed European methodology.

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Aggregate Implications of Changing Sectoral Trends

Foerster

Hornstein

Sarte

et al. 2022

Journal of Political Economy

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We find disparate trend variation in TFP and labor growth across major U.S. production sectors over the post-WWII period. When aggregated, these sector-specific trends imply secular declines in the growth rate of aggregate labor and TFP. We embed this sectoral trend variation into a dynamic multi-sector framework in which materials and capital used in each sector are produced by other sectors. The presence of capital induces important network effects from production linkages that amplify the consequences of changing sectoral trends on GDP growth. Thus, in some sectors, changes in TFP and labor growth lead to changes in GDP growth that may be as large as three times these sectors' share in the economy. We find that trend GDP growth has declined by more than 2 percentage points since 1950, and that this decline has been primarily shaped by sector-specific rather than aggregate factors. Sustained contractions in growth specific to Construction, Nondurable Goods, and Professional and Business and Services make up close to sixty percent of the estimated trend decrease in GDP growth. In addition, the slow process of capital accumulation means that structural changes have endogenously persistent effects. We estimate that trend GDP growth will continue to decline for the next 10 years absent persistent increases in TFP and labor growth.

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Toward a BEA-BLS integrated industry-level production account for 1947–2016

Cited by 5 publications

References 3 publications

Not a Typical Firm: The Joint Dynamics of Firms, Labor Shares, and Capital–Labor Substitution

Not a Typical Firm: The Joint Dynamics of Firms, Labor Shares, and Capital–Labor Substitution

To chain or not to chain? measuring real GDP in the US and the choice of index number

Aggregate Implications of Changing Sectoral Trends

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