EconPapers    
Economics at your fingertips  
 

How important are human capital, physical capital and total factor productivity for determining state economic growth in the United States: 1840-2000?

Chad Turner (), Robert Tamura () and Sean Mulholland

MPRA Paper from University Library of Munich, Germany

Abstract: This paper creates a new data set on physical capital at the state level for the United States from 1840 - 2000. Combining these new data with state level human capital and output data enables us to estimate the contribution of aggregate input growth and total factor productivity (TFP) growth to output growth across states from 1840 - 2000, and to decompose the cross-sectional variance of output growth into the component explained by variation in aggregate inputs and the compenent explained by variation in TFP. As our data are across states instead of across countries, one would expect less institutional heterogeneity in this study than in studies using cross-country comparisons. We find that that 65% of average output growth from 1840 - 2000 is accounted for by average input growth. We find a plausible upper bound of output variation explained by TFP growth is 91%, while a plausible upper bound of output variation explained by input growth is 62%. Interestingly, even at the state level where the unit of observation is more homogeneous, TFP continues to be an important determinant of both the growth of and the variation of output per worker.

Keywords: state physical capital; state human capital; state real output; state total factor productivity (search for similar items in EconPapers)
JEL-codes: E01 O4 (search for similar items in EconPapers)
Date: 2008-02-11
New Economics Papers: this item is included in nep-eff, nep-hrm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/7715/1/MPRA_paper_7715.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/32846/2/MPRA_paper_32846.pdf revised version (application/pdf)

Related works:
Journal Article: How important are human capital, physical capital and total factor productivity for determining state economic growth in the United States, 1840–2000? (2013) Downloads
Working Paper: How Important are Human Capital, Physical Capital and Total Factor Productivity for Determining State Economic Growth in the United States, 1840-2000 (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:7715

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2020-01-21
Handle: RePEc:pra:mprapa:7715