Neutral, Investment-Specific Technical Progress and the Productivity Slowdown

Fernando del Río

No 2002013, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: In this article I show that a permanent possitive shock on the rate of investment-specific technical progress might cause, at least in the short run, a fall of the growth rate of both output per capita and total factor productivity, as measured by the Solow residual. Several simulations are performed which show that the extent of the Productivity Slowdown drastically depends on the elasticity of the marginal cost of producing a unit of capital good with respect to the rate of investment-specific technical progress.

Keywords: Neutral and Investment-Specific Technical Progress; Total Factor Productivity; Productivity Slowdown (search for similar items in EconPapers)
JEL-codes: O30 O40 (search for similar items in EconPapers)
Pages: 18
Date: 2002-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Neutral, Investment-Specific Technical Progress and the Productivity Slowdown (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvre:2002013

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