Durable Goods and ICT: The Drivers of Euro Area Productivity growth?

Jukka Jalava () and Ilja Kristian Kavonius ()

No 1132, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: ABSTRACT : The purpose of this paper is to estimate the effect of durable goods and ICT on Euro Area economic growth and productivity change; when expenditure on consumer durables is recorded as capital investment. The capitalization of consumer durables impacts both the levels and growth rates of the capital stock, productivity and GDP. Our growth accounting computations demonstrated that the capital services of durables contributed one-tenth of economic growth and one-eight of labour productivity growth in 1995-2004. ICT´s impacts were larger, i.e., one-fifth of GVA growth and one-sixth of labour productivity growth.

Keywords: durable good; asset; productivity; ICT; growth accounting; capital services; household production (search for similar items in EconPapers)
JEL-codes: E13 E21 E22 O11 O47 O52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-eff and nep-mac
Date: 2008-04-23
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