Quantifying embodied technological change

Plutarchos Sakellaris and Daniel Wilson

No 158, Working Paper Series from European Central Bank

Abstract: We estimate the rate of embodied technological change directly from plant-level manufacturing data on current output and input choices along with histories on their vintages of equipment investment. Our estimates range between 8 and 17 percent for the typical U.S. manufacturing plant during the years 1972-1996. Any number in this range is substantially larger than is conventionally accepted with some important implications. First, the role of investment-specific technological change as an engine of growth is even larger than previously estimated. Second, existing producer durable price indices do not adequately account for quality change. As a result, measured capital stock growth is biased. Third, if accurate, the Hulten and Wykoff (1981) economic depreciation rates may primarily reflect obsolescence. JEL Classification: O3, D24, L60

Keywords: embodied technological change; equipment investment; plant; producer durable price index.; productivity growth (search for similar items in EconPapers)
Date: 2002-07
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Quantifying Embodied Technological Change (2004)
Working Paper: Quantifying embodied technological change (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2002158

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