Sectoral Solow Residuals

Craig Burnside, Martin Eichenbaum and Sergio Rebelo ()

No 5286, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper presents capital utilization corrected measures of technology shocks for aggregate and disaggregated (two digit Standard Industrial Classification code) industries. We correct for variations in capital utilization by employing industrial electrical use as a measure of capital services. In contrast, the standard measures of technology shocks used in the Real Business Cycle literature are based on economy wide data and assume that capital services are proportional to the stock of measured capital. To assess the impact of these differences, we contrast selected properties of the competing technology shock measures. We argue that the properties of technology shocks for the manufacturing sector are quite different than those used in the RBC literature. We also find that correcting for capital utilization has important implications for the properties of the Solow residual.

JEL-codes: D2 E3 (search for similar items in EconPapers)
Date: 1995-10
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Burnside, A. Craig, Martin S. Eichenbaum and Sergio T. Rebelo. "Sectoral Solow Residuals," European Economic Review, 1996, v40(3-5,Apr), 861-869.

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Related works:
Journal Article: Sectoral Solow residuals (1996)
Working Paper: Sectoral Solow residuals (1995)
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