VOLUME IV
AUTUMN 1996

EXTEMAL ECONOMIES, EXTEMALITIES AND LABOUR HOARDING IN SPANISH INDUSTRY (1964- 1989)
 
FRANCISCO J. GOERLICH
Universidad de Valencia
VICENTE ORTS
Universitat Jaume I
 
This paper confirms the procyclical behavior of total factor productivity for the manufacturing sectors of the spanish industry when total output, instead of value added, enters the calculations. It should be mention, however, that in this case the data show a lower degree of procyclicality. In addition, we investigate if the presence of extemal economies, that have been reported in previous work, are robust to the use of such data. Our results show that the extemal economies are not significant and that labor hoarding is not a plausible explanation of the procyclical productivity issue for our data. At our leve1 of aggregation constant returns to scale cannot be rejected for the industrial sector.
 
Keywords: imperfect competition, mark-ups, industrial economics.

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