Rejoinder to Gu on "Estimating Capital Input for Measuring Business Sector Multifactor Productivity Growth in Canada"

Walter Diewert

International Productivity Monitor, 2012, vol. 24, 63-72

Abstract: This rejoinder responds to the comments of Wulong Gu (2012) on the article by Diewert and Yu (2012). The paper lays out the algebra behind the Diewert-Yu capital services methodology and the corresponding methodology used by the Statistics Canada Canadian Productivity Program. The large differences in the estimates can mainly be explained by different treatments of the expected capital gains term in user costs and the use of sectoral balancing rates of return versus economy-wide balancing rates of return.

Date: 2012
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