EconPapers    
Economics at your fingertips  
 

Money and the Measurement of Total Factor Productivity

Walter Diewert and Kevin Fox

Journal of Financial Stability, 2019, vol. 42, issue C, 84-89

Abstract: Firms have greatly increased their cash holdings since the mid-1990s. These holdings have an opportunity cost; i.e., allocating firm financial capital into monetary deposits means that investment in real assets is reduced. Traditional measures of Total Factor Productivity (TFP) do not take into account these holdings of monetary assets. Given the recent large increases in these holdings in the U.S. and other advanced economies, it is expected that adding these monetary assets to the list of traditional sources of capital services will reduce the TFP of the business sector. We measure this effect for the U.S. corporate and non-corporate business sectors.

Keywords: Productivity; money; national accounts; capital services (search for similar items in EconPapers)
JEL-codes: D24 E01 E41 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1572308919303134
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Money and the Measurement of Total Factor Productivity (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:42:y:2019:i:c:p:84-89

DOI: 10.1016/j.jfs.2019.05.008

Access Statistics for this article

Journal of Financial Stability is currently edited by I. Hasan, W. C. Hunter and G. G. Kaufman

More articles in Journal of Financial Stability from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:finsta:v:42:y:2019:i:c:p:84-89