Technical Progress Drives Macroeconomic Fluctuations, Reallocation Lags Behind
The study looked at how changes in technology and resource allocation affect the ups and downs of the economy. They found that while moving resources around is important for overall productivity growth, it doesn't really cause big swings in productivity during economic cycles. Instead, most of the changes in productivity come from how efficiently technology is being used. So, when the economy goes up and down, it's mostly because of how well technology is being used, not because of moving resources around.