Quantifying Embodied Technological Change

Plutarchos Sakellaris () and Daniel John Wilson ()

Review of Economic Dynamics, 2004, vol. 7, issue 1, pages 1-26

Abstract: We estimate the rate of embodied technological change directly from plant-level manufacturing data on current output and input choices along with histories on their vintages of equipment investment. Our estimates range between 8 and 17 percent for the typical U.S. manufacturing plant during the years 1972-1996. Any number in this range is substantially larger than is conventionally accepted with some important implications. First, the role of investment-specific technological changeas an engine of growth is even larger than previously estimated. Second, existing producer durable price indices do not adequately account for quality change. As a result, measured capital stock growth is biased. Third, if accurate, the Hulten and Wykoff (1981) economic depreciation rates may primarily reflect obsolescence. (Copyright: Elsevier)

Keywords: productivity growth; embodied technological change; equipment investment; plant; producer durable price index. (search for similar items in EconPapers)
JEL-codes: O3 D24 L60 (search for similar items in EconPapers)
Date: 2004
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Working Paper: Quantifying embodied technological change (2002)
Working Paper: Quantifying embodied technological change (2001)
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