RDP 2023-03: Doing Less, with Less: Capital Misallocation, Investment and the Productivity Slowdown in Australia References

Ackerberg DA, K Caves and G Frazer (2015), ‘Identification Properties of Recent Production Function Estimators’, Econometrica, 83(6), pp 2411–2451.

Adalet McGowan M, D Andrews and V Millot (2018), ‘The Walking Dead? Zombie Firms and Productivity Performance in OECD Countries’, Economic Policy, 33(96), pp 685–736.

Agarwal R, C Bajada, P Brown, I Moran and A Balaguer (2019), ‘Development of Management Capability Scores’, Australian Government Department of Industry, Innovation and Science, Office of the Chief Economist Research Paper 10/2019.

Akcigit U and ST Ates (2019), ‘What Happened to U.S. Business Dynamism?’, NBER Working Paper No 25756, rev May 2019.

Andrews D, C Criscuolo and PN Gal (2019), ‘The Best versus the Rest: Divergence across Firms during the Global Productivity Slowdown’, Centre for Economic Performance, CEP Discussion Paper No 1645.

Andrews D, J Hambur, D Hansell and A Wheeler (2022), ‘Reaching for the Stars: Australian Firms and the Global Productivity Frontier’, Australian Treasury Working Paper No 2022-01.

Andrews D and D Hansell (2021), ‘Productivity-Enhancing Labour Reallocation in Australia’, Economic Record, 97(317), pp 157–169.l

Baqaee DR and E Fahri (2020), ‘Productivity and Misallocation in General Equilibrium’, The Quarterly Journal of Economics, 135(1), pp 105–163.

Blackwood GJ, LS Foster, CA Grim, J Haltiwanger and Z Wolf (2021), ‘Macro and Micro Dynamics of Productivity: From Devilish Details to Insights’, American Economic Journal: Macroeconomics, 13(3), pp 142–172.

Bond S and J Van Reenen (2007), ‘Microeconometric Models of Investment and Employment’, in JJ Heckman and EE Leamer (eds), Handbook of Econometrics: Volume 6A, Handbooks in Economics 2, North-Holland, Amsterdam, pp 4417–4498.

Calvino F, C Criscuolo, L Marcolin and M Squicciarini (2018), ‘A Taxonomy of Digital Intensive Sectors’, OECD Science, Technology and Industry Working Papers No 2018/14.

Calvino F, C Crisuolo and R Verlhac (2020), ‘Declining Business Dynamism: Structural and Policy Determinants’, OECD Science, Technology and Innovation Policy Papers No 94.

Chen W, F Díez, R Duval, C Jones and C Villegas-Sánchez (2019), ‘The Rise of Corporate Market Power and Its Macroeconomic Implications’, World Economic Outlook: Growth Slowdown, Precarious Recovery, April, IMF, Washington DC, pp 55–76.

Davis SJ, JC Haltiwanger and S Schuh (1996), Job Creation and Destruction, The MIT Press, Cambridge.

De Loecker J, J Eeckhout and G Unger (2020), ‘The Rise of Market Power and the Macroeconomic Implications’, The Quarterly Journal of Economics, 135(2), pp 561–644.

Debelle G (2017), ‘Business Investment in Australia’, Address to the UBS Australasia Conference 2017, Sydney, 13 November.

Decker RA, J Haltiwanger, RS Jarmin and J Miranda (2020), ‘Changing Business Dynamism and Productivity: Shocks versus Responsiveness’, The American Economic Review, 110(12), pp 3952–3990.

Demmou L, I Stefanescu and A Arquie (2019), ‘Productivity Growth and Finance: The Role of Intangible Assets – A Sector Level Analysis’, OECD Economics Department Working Papers No 1547.

Deutscher, N (2019), ‘Job-to-Job Transitions and the Wages of Australian Workers’, Australian Treasury Working Paper No 2019-07.

Duretto Z, O Majeed and J Hambur (2022), ‘Overview: Understanding Productivity in Australia and the Global Slowdown’, Treasury Round Up, October, pp 4–13.

Edwards H and K Lane (2021), ‘Why Are Investment Hurdle Rates so Sticky?’, RBA Bulletin, December.

e61 (2022), ‘Better Harnessing Australia's Talent: Five Facts for the Summit’, e61 Institute Policy Paper.

Foster L, J Haltiwanger and C Syverson (2008), ‘Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability?’, The American Economic Review, 98(1), pp 394–425.

Gutiérrez G and T Philippon (2016), ‘Investment-Less Growth: An Empirical Investigation’, NBER Working Paper No 22897, rev January 2017.

Gutiérrez G and T Philippon (2019), ‘The Failure of Free Entry’, NBER Working Paper No 26001.

Haltiwanger J, R Kulick and C Syverson (2018), ‘Misallocation Measures: The Distortion That Ate the Residual’, NBER Working Paper No 24199, rev October 2018.

Hambur J (forthcoming), ‘Product Market Competition and Its Implications for the Australian Economy’, Economic Record.

Hambur J and K Jenner (2019), ‘Can Structural Change Account for the Low Level of Non-Mining Investment?’, RBA Bulletin, June.

Hambur J and G La Cava (2018), ‘Do Interest Rates Affect Business Investment? Evidence from Australian Company-Level Data’, RBA Research Discussion Paper No 2018-05.

Hansell, D, T Nguyen and F Soriano (2015), ‘Can We Improve on a Headcount? Estimating Unobserved Labour Input with Individual Wage Data’, Paper presented to the 26th Australian Labour Market Research Workshop, Flinders University, Adelaide, 3–4 December.

Haskell J and S Westlake (2017), Capitalism without Capital: The Rise of the Intangible Economy, Princeton University Press, Princeton.

Heads of Treasuries (2017), ‘Intergovernmental Review of Business Investment’, September.

Hsieh C-T and PJ Klenow (2009), ‘Misallocation and Manufacturing TFP in China and India’, The Quarterly Journal of Economics, 124(4), pp 1403–1448.

Kido Y and Kothari S (2021), ‘Reigniting Productivity Growth in Australia’, in ‘Australia: Selected Issues’, IMF Country Report No 21/256.

La Cava G (2005), ‘Financial Constraints, the User Cost of Capital and Corporate Investment in Australia’, RBA Research Discussion Paper No 2005-12.

La Cava G (2019), ‘The Labour and Capital Shares of Income in Australia’, RBA Bulletin, March.

Productivity Commission (2022), 5-Year Productivity Inquiry: From Learning to Growth, Interim Report No 5, Productivity Commission, Canberra.

Rajan RG and L Zingales (1998), ‘Financial Dependence and Growth’, The American Economic Review, 88(3), pp 559–586.

Spaliara M-E (2009), ‘Do Financial Factors Affect the Capital–Labour Ratio? Evidence from UK Firm-Level Data’, Journal of Banking & Finance, 33(10), pp 1932–1947.

van der Merwe M, L Cockerell, M Chambers and J Jääskelä (2018), ‘Private Non-Mining Investment in Australia’, RBA Bulletin, June.