Trends in productivity: the case of capital shortage

Gerard Kuper and Simon Kuipers
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Simon Kuipers: Groningen University

No 200117, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: Abstract This paper analyses the effect of rising wage rates and real interest rates on labour productivity and capital productivity in a situation of capital shortage. Furthermore, it shows the effect of rising wage rates and real interest rates on the capital intensity of the production process. This latter effect can not be determined unambiguously.

Date: 2001
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