Long Run and Short Run Dynamics in Italian Manufacturing Labour Productivity

Carmine Pappalardo and Tatiana Cesaroni

No 6795, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines structural changes in the Italian manufacturing sector, focusing labour productivity in recent decades. To this end it distinguishes between trend movements in the data using a multivariate unobserved components model. Changes relative importance of cyclical and trend components in labour productivity allow discrimination among the impacts of the factors affecting the performance of the manufacturing sector during the 1980s, 1990s and in the more recent period.

Date: 2008-04
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