[PEN-L:2728] 2 questions

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

I was just reading an article by Robert Gordon about the low total
factor productivity growth during the late 19th C.  I know that this was
a period of rapid technical change.  I suspect that the low productivity
growth was an artifact reflecting the highly competitive conditions at
the time.

1. Does anybody know of any work in considering the effect of
competitive conditions on measured productivity?

I just read in the new Business Week on Gene Koretz page the suggestion
that the stock buybacks are a response to the fact that CEOs pay depends
mostly on stock prices.  And that firms are running up debt to buy back
stocks and to spend on capital goods.

2. Has anybody investigated this dimension of financial fragility?  Does
this put the final nail in the q-ratio coffin?

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx