Cookies?
Library Header Image
LSE Research Online LSE Library Services

The UK's great demand and supply recession

Jacob, Nick and Mion, Giordano (2020) The UK's great demand and supply recession. CEP Discussion Papers (1737). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

[img] Text (dp1737) - Published Version
Download (991kB)

Abstract

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 TFPQ pushing down sales, markups, revenue TFP and labour productivity.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: © 2020 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HB Economic Theory
JEL classification: D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
E - Macroeconomics and Monetary Economics > E0 - General > E01 - Measurement and Data on National Income and Product Accounts and Wealth
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output (Income) Convergence
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe
Date Deposited: 22 Jan 2021 09:30
Last Modified: 23 Jan 2021 00:18
URI: http://eprints.lse.ac.uk/id/eprint/108524

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics