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Accounting for capital consumption and technological progress

Michael Gort and Peter Rupert ()

Economic Review, 1999, issue Q II, 13-18

Abstract: Methods currently used to calculate capital consumption, the stock of capital, and the sources of economic growth do not adequately measure the underlying growth in inputs due to technological advance. This lack affects tax policy as well as the design of programs targeting potential areas of economic growth. The authors present a model designed to surmount the problems affecting current methods of calculation.

Date: 1999
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