Arbeitspapier
The UK's Great Demand and Supply Recession
We revisit UK’s poor productivity performance since the Great Recession by means of both a suitable theoretical framework and firm-level prices and quantities data for detailed products allowing us to both measure demand, and its changes over time, and distinguish between quantity total factor productivity (TFP-Q), i.e., the capacity to turn inputs into more physical output (number of shirts, liters of beer), and what we call revenue total factor productivity (TFP-R), i.e., productivity calculated using revenue (or value-added) as a measure of output and so the capacity to turn inputs into more revenue. This in turn allows us to measure how changes in TFP-Q, demand and markups ultimately affected revenue TFP, as well as labour productivity, over the Great Recession. Our findings suggest that the poor UK firms’ productivity performance post-recession is due to both a weakening of demand and a decreasing TFP-Q pushing down sales, markups, revenue TFP and labour productivity.
- Language
-
Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 8755
- Classification
-
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Production, Pricing, and Market Structure; Size Distribution of Firms
Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Economywide Country Studies: Europe
- Subject
-
total factor productivity (TFP)
revenue TFP
prices
demand
Great Recession
United Kingdom
- Event
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Geistige Schöpfung
- (who)
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Jacob, Nick
Mion, Giordano
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and Ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2020
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Jacob, Nick
- Mion, Giordano
- Center for Economic Studies and Ifo Institute (CESifo)
Time of origin
- 2020
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