What Determines Productivity?
These productivity differences across pro-ducers are not fleeting, either. Regressing a producer’s current TFP on its one-year-lagged TFP yields autoregressive coefficients on the order of 0.6 to 0.8 (see, e.g., Árpád Ábrahám and Kirk White 2006 and Foster, Haltiwanger, and Syverson 2008). Put sim-ply, some producers seem to have figured out
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