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Author:Dias, Daniel A. 

Working Paper
From Micro to Macro: A Note on the Analysis of Aggregate Productivity Dynamics Using Firm-Level Data

In the empirical literature, the analysis of aggregate productivity dynamics using firm-level productivity has mostly been based on changes in the mean of log-productivity. This paper shows that there can be substantial quantitative and qualitative differences in the results relative to when the analysis is based on changes in the mean of productivity, and discusses the circumstances under which such differences are likely to happen. We use firm-level data for Portugal for the period 2006-2015 to illustrate the point. When the mean of productivity is used, we estimate that TFP and labor ...
International Finance Discussion Papers , Paper 1314

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