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Papers written by Author(s): 'T. Kirk White'

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  • Working Paper

    Redesigning the Longitudinal Business Database

    May 2021

    Working Paper Number:

    CES-21-08

    In this paper we describe the U.S. Census Bureau's redesign and production implementation of the Longitudinal Business Database (LBD) first introduced by Jarmin and Miranda (2002). The LBD is used to create the Business Dynamics Statistics (BDS), tabulations describing the entry, exit, expansion, and contraction of businesses. The new LBD and BDS also incorporate information formerly provided by the Statistics of U.S. Businesses program, which produced similar year-to-year measures of employment and establishment flows. We describe in detail how the LBD is created from curation of the input administrative data, longitudinal matching, retiming of economic census-year births and deaths, creation of vintage consistent industry codes and noise factors, and the creation and cleaning of each year of LBD data. This documentation is intended to facilitate the proper use and understanding of the data by both researchers with approved projects accessing the LBD microdata and those using the BDS tabulations.
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  • Working Paper

    Addressing Data Gaps: Four New Lines of Inquiry in the 2017 Economic Census

    September 2019

    Working Paper Number:

    CES-19-28

    We describe four new lines of inquiry added to the 2017 Economic Census regarding (i) retail health clinics, (ii) management practices in health care services, (iii) self-service in retail and service industries, and (iv) water use in manufacturing and mining industries. These were proposed by economists from the U.S. Census Bureau's Center for Economic Studies in order to fill data gaps in current Census Bureau products concerning the U.S. economy. The new content addresses such issues as the rise in importance of health care and its complexity, the adoption of automation technologies, and the importance of measuring water, a critical input to many manufacturing and mining industries.
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  • Working Paper

    Measuring Cross-Country Differences in Misallocation

    January 2016

    Working Paper Number:

    CES-16-50R

    We describe differences between the commonly used version of the U.S. Census of Manufactures available at the RDCs and what establishments themselves report. The originally reported data has substantially more dispersion in measured establishment productivity. Measured allocative efficiency is substantially higher in the cleaned data than the raw data: 4x higher in 2002, 20x in 2007, and 80x in 2012. Many of the important editing strategies at the Census, including industry analysts' manual edits and edits using tax records, are infeasible in non-U.S. datasets. We describe a new Bayesian approach for editing and imputation that can be used across contexts.
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  • Working Paper

    RECOVERING THE ITEM-LEVEL EDIT AND IMPUTATION FLAGS IN THE 1977-1997 CENSUSES OF MANUFACTURES

    September 2014

    Authors: T. Kirk White

    Working Paper Number:

    CES-14-37

    As part of processing the Census of Manufactures, the Census Bureau edits some data items and imputes for missing data and some data that is deemed erroneous. Until recently it was difficult for researchers using the plant-level microdata to determine which data items were changed or imputed during the editing and imputation process, because the edit/imputation processing flags were not available to researchers. This paper describes the process of reconstructing the edit/imputation flags for variables in the 1977, 1982, 1987, 1992, and 1997 Censuses of Manufactures using recently recovered Census Bureau files. Thepaper also reports summary statistics for the percentage of cases that are imputed for key variables. Excluding plants with fewer than 5 employees, imputation rates for several key variables range from 8% to 54% for the manufacturing sector as a whole, and from 1% to 72% at the 2-digit SIC industry level.
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  • Working Paper

    Are We Undercounting Reallocation's Contribution to Growth?

    January 2013

    Working Paper Number:

    CES-13-55R

    There has been a strong surge in aggregate productivity growth in India since 1990, following significant economic reforms. Three recent studies have used two distinct methodologies to decompose the sources of growth, and all conclude that it has been driven by within-plant increases in technical efficiency and not between-plant reallocation of inputs. Given the nature of the reforms, where many barriers to input reallocation were removed, this finding has surprised researchers and been dubbed 'India's Mysterious Manufacturing Miracle.' In this paper, we show that the methodologies used may artificially understate the extent of reallocation. One approach, using growth in value added, counts all reallocation growth arising from the movement of intermediate inputs as technical efficiency growth. The second approach, using the Olley-Pakes decomposition, uses estimates of plant-level total factor productivity (TFP) as a proxy for the marginal product of inputs. However, in equilibrium, TFP and the marginal product of inputs are unrelated. Using microdata on manufacturing from five countries ' India, the U.S., Chile, Colombia, and Slovenia ' we show that both approaches significantly understate the true role of reallocation in economic growth. In particular, reallocation of materials is responsible for over half of aggregate Indian manufacturing productivity growth since 2000, substantially larger than either the contribution of primary inputs or the change in the covariance of productivity and size.
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  • Working Paper

    Plant-Level Productivity and Imputation of Missing Data in the Census of Manufactures

    January 2011

    Working Paper Number:

    CES-11-02

    In the U.S. Census of Manufactures, the Census Bureau imputes missing values using a combination of mean imputation, ratio imputation, and conditional mean imputation. It is wellknown that imputations based on these methods can result in underestimation of variability and potential bias in multivariate inferences. We show that this appears to be the case for the existing imputations in the Census of Manufactures. We then present an alternative strategy for handling the missing data based on multiple imputation. Specifically, we impute missing values via sequences of classification and regression trees, which offer a computationally straightforward and flexible approach for semi-automatic, large-scale multiple imputation. We also present an approach to evaluating these imputations based on posterior predictive checks. We use the multiple imputations, and the imputations currently employed by the Census Bureau, to estimate production function parameters and productivity dispersions. The results suggest that the two approaches provide quite different answers about productivity.
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  • Working Paper

    Who Moves to Mixed-Income Neighborhoods?

    August 2010

    Working Paper Number:

    CES-10-18

    This paper uses confidential Census data, specifically the 1990 and 2000 Census Long Form data, to study the income dispersion of recent cohorts of migrants to mixed-income neighborhoods. If recent in-migrants to mixed-income neighborhoods exhibit high levels of income heterogeneity, this is consistent with stable mixed-income neighborhoods. If, however, mixed-income neighborhoods are comprised of older homogeneous lower-income (higher income) cohorts combined with newer homogeneous higher-income (lower-income) cohorts, this is consistent with neighborhood transition. Our results indicate that neighborhoods with high levels of income dispersion do in fact attract a much more heterogeneous set of in-migrants, particularly from the tails of the income distribution, but that income heterogeneity does tend to erode over time. Our results also suggest that the residents of mixed-income neighborhoods may be less heterogeneous with respect to lifetime income.
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  • Working Paper

    The Impact of Plant-Level Resource Reallocations and Technical Progress on U.S. Macroeconomic Growth

    December 2009

    Working Paper Number:

    CES-09-43

    We build up from the plant level an "aggregate(d) Solow residual" by estimating every U.S. manufacturing plant's contribution to the change in aggregate final demand between 1976 and 1996. We decompose these contributions into plant-level resource reallocations and plant-level technical efficiency changes. We allow for 459 different production technologies, one for each 4- digit SIC code. Our framework uses the Petrin and Levinsohn (2008) definition of aggregate productivity growth, which aggregates plant-level changes to changes in aggregate final demand in the presence of imperfect competition and other distortions and frictions. On average, we find that aggregate reallocation made a larger contribution than aggregate technical efficiency growth. Our estimates of the contribution of reallocation range from 1:7% to2:1% per year, while our estimates of the average contribution of aggregate technical efficiency growth range from 0:2% to 0:6% per year. In terms of cyclicality, the aggregate technical efficiency component has a standard deviation that is roughly 50% to 100% larger than that of aggregate total reallocation, pointing to an important role for technical efficiency in macroeconomic fluctuations. Aggregate reallocation is negative in only 3 of the 20 years of our sample, suggesting that the movement of inputs to more highly valued activities on average plays a stabilizing role in manufacturing growth.
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  • Working Paper

    Who Gentrifies Low Income Neighborhoods?

    January 2008

    Working Paper Number:

    CES-08-02

    This paper uses confidential Census data, specifically the 1990 and 2000 Census Long- Form data, to study the demographic processes underlying the gentrification of low income urban neighborhoods during the 1990's. In contrast to previous studies, the analysis is conducted at the more refined census-tract level with a narrower definition of gentrification and more narrowly defined comparison neighborhoods. The analysis is also richly disaggregated by demographic characteristic, uncovering differential patterns by race, education, age and family structure that would not have emerged in the more aggregate analysis in previous studies. The results provide little evidence of displacement of low-income non-white households in gentrifying neighborhoods. The bulk of the income gains in gentrifying neighborhoods are attributed to white college graduates and black high school graduates. It is the disproportionate in-migration of the former and the disproportionate retention and income gains of the latter that appear to be the main engines of gentrification.
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  • Working Paper

    The Dynamics of Plant-Level Productivity in U.S. Manufacturing

    July 2006

    Working Paper Number:

    CES-06-20

    Using a unique database that covers the entire U.S. manufacturing sector from 1976 until 1999, we estimate plant-level total factor productivity for a large number of plants. We characterize time series properties of plant-level idiosyncratic shocks to productivity, taking into account aggregate manufacturing-sector shocks and industry-level shocks. Plant-level heterogeneity and shocks are a key determinant of the cross-sectional variations in output. We compare the persistence and volatility of the idiosyncratic plant-level shocks to those of aggregate productivity shocks estimated from aggregate data. We find that the persistence of plant level shocks is surprisingly low-we estimate an average autocorrelation of the plantspecific productivity shock of only 0.37 to 0.41 on an annual basis. Finally, we find that estimates of the persistence of productivity shocks from aggregate data have a large upward bias. Estimates of the persistence of productivity shocks in the same data aggregated to the industry level produce autocorrelation estimates ranging from 0.80 to 0.91 on an annual basis. The results are robust to the inclusion of various measures of lumpiness in investment and job flows, different weighting methods, and different measures of the plants' capital stocks.
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