Technological shocks driving productivity variations in Swedish manufacturing industries.
The article explores why productivity in Swedish manufacturing industries has changed since the 1950s. By analyzing data from different types of industries, the researchers found that technological shocks play a key role in short-term productivity variations. They used a mathematical formula to calculate Total Factor Productivity (TFP) based on labor and capital inputs. The study suggests that TFP reflects changes in technology when certain conditions are met, like perfect competition and constant returns to scale.