The UK's Great Demand and Supply Recession

Jacob, Nick; Mion, Giordano

Abstract

We revisit the weak productivity performance of the UK since the Great Recession by means of both a suitable theoretical framework and firm-level price and quantity data for detailed products, allowing us to measure both demand and its changes over time and distinguish between quantity total factor productivity and revenue total factor productivity. This in turn allows us to measure how changes in quantity TFP, demand and markups ultimately affected revenue TFP, as well as labour productivity, over the Great Recession. Our findings suggest that the weak productivity performance of UK firms post-recession is due to both weakening demand and decreasing quantity TFP pushing down sales, markups, revenue TFP and labour productivity.

Citation

Jacob, N., & Mion, G. (2023). The UK's Great Demand and Supply Recession. Oxford Bulletin of Economics and Statistics, 85(5), 993-1022. https://doi.org/10.1111/obes.12533

• Journal Article Type: Article
• Acceptance Date: Oct 10, 2022
• Online Publication Date: Nov 29, 2022
• Publication Date: 2023-10
• Deposit Date: Oct 21, 2022
• Publicly Available Date: Nov 30, 2024
• Journal: Oxford Bulletin of Economics and Statistics
• Print ISSN: 0305-9049
• Electronic ISSN: 1468-0084
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 85
• Issue: 5
• Pages: 993-1022
• DOI: https://doi.org/10.1111/obes.12533
• Keywords: Statistics, Probability and Uncertainty; Economics and Econometrics; Social Sciences (miscellaneous); Statistics and Probability
• Public URL: https://nottingham-repository.worktribe.com/output/12622853
• Publisher URL: https://onlinelibrary.wiley.com/doi/10.1111/obes.12533