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Production function estimation with industry capacity data

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Author Info
Plutarchos Sakellaris

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Abstract

This paper introduces a new data set for the analysis of productivity in U.S. manufacturing. It consists of data on production and input levels when the plants in an industry operate at capacity. The estimates are consistent with those obtained using data on actual operations from the ASM. As an application, I use this data to estimate the rate of growth of technological change that is embodied in equipment capital. The estimates imply a larger role of equipment investment and embodied technological change on economic growth than is conventionally assumed.

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Publisher Info
Paper provided by Board of Governors of the Federal Reserve System (U.S.) in its series Finance and Economics Discussion Series with number 2001-06.

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Date of creation: 2001
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Handle: RePEc:fip:fedgfe:2001-06

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Related research
Keywords: Productivity ; Manufactures ; Technology;

This paper has been announced in the following NEP Reports:

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  1. TOKUI Joji & INUI Tomohiko & Young Gak KIM, 2008. "Embodied Technological Progress and the Productivity Slowdown in Japan," Discussion papers 08017, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  2. Whelan, Karl, 2005. "Embodiment, Productivity, and the Age Distribution of Capital," MPRA Paper 5912, University Library of Munich, Germany. [Downloadable!]
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This page was last updated on 2009-11-18.

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