During the 1929-1933 contraction, labor productivity was countercyclical in several manufacturing sectors- evidence consistent with the view that large negative demand shocks pushed the economy down a static, neoclassical production function. This evidence does not readily square with explanations for the contraction emphasizing labor hoarding and increasing returns.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Countercyclical manufacturing
- Great Depression
- Labor productivity