Growth and capital deepening since 1870: Is it all technological progress?

Jakob Madsen

Journal of Macroeconomics, 2010, vol. 32, issue 2, 641-656

Abstract: Based on an asset pricing model, this paper shows that traditional growth accounting exercises attribute too much weight to capital deepening and suggests a method to filter out TFP-induced capital deepening from the estimates. Using data for 16 industrialised countries, it is shown that labour productivity and capital deepening have been driven by total factor productivity and reductions in the required stock returns over the past 137Â years. Furthermore, it is shown that TFP precedes the K-L ratio and not the other way around.

Keywords: Growth; accounting; TFP; growth; Required; stock; returns; Endogeneity (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164-0704(09)00083-4
Full text for ScienceDirect subscribers only

Related works:
Working Paper: GROWTH AND CAPITAL DEEPENING SINCE 1870: IS IT ALL TECHNOLOGICAL PROGRESS?* (2009)
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:jmacro:v:32:y:2010:i:2:p:641-656

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

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