Trend breaks and the long-run implications of investment-specific technological progress

Alban Moura

MPRA Paper from University Library of Munich, Germany

Abstract: I update the Greenwood, Hercowitz, and Krusell (1997) decomposition of U.S. growth into contributions from neutral and investment-specific technological progress. I allow the decomposition to vary across sub-samples, reflecting the presence of trend breaks in the data. The estimates suggest that neutral technological progress explained virtually all growth between 1950 and the mid-1970s. However, investment-specific technological progress accounts for about 75 percent of growth since the 1980s. These results support splitting the postwar sample and using two-sector models to study the recent period.

Keywords: neutral technology; investment-specific technology; sources of long-run growth; structural breaks (search for similar items in EconPapers)
JEL-codes: E13 O33 O41 O47 (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-gro, nep-his and nep-mac
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Journal Article: Trend breaks and the long-run implications of investment-specific technological progress (2023)
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