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Growth And Capital Deepening Since 1870: Is It All Technological Progress? Author info | Abstract | Publisher info | Download info | Related research | Statistics Jakob B. Madsen
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Based on an asset pricing model this paper shows that traditional growth accounting exercises attribute too much weight to capital deepening and suggests a method to filter out TFP-induced capital-deepening from the estimates. Using data for 16 industrialised countries, it is shown that labour productivity and capital deepening have been driven by total factor productivity and reductions in the required stock returns over the past 137 years. Furthermore, it is shown that TFP precedes the K-L ratio and not the other way around.
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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number
10/09.
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Length: 36 pages
Date of creation: 02 May 2009Date of revision:
Handle: RePEc:mos:moswps:2009-10Contact details of provider: Postal: Department of Economics, Monash University, Victoria 3800, Australia Phone: +61-3-9905-2493 Fax: +61-3-9905-5476 Email: Web page: http://www.buseco.monash.edu.au/eco/ More information through EDIRC
Order Information: Email: Web: http://www.buseco.monash.edu.au/eco/research/papers/
For technical questions regarding this item, or to correct its listing, contact: (Simon Angus).
Keywords: Growth accounting ; TFP growth ; required stock returns ; endogeneity ; Other versions of this item:
Find related papers by JEL classification: E0 - Macroeconomics and Monetary Economics - - General E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Madsen, Jakob B., 2007.
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"Stock Prices and Fundamentals: A Macroeconomic Perspective ,"
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Jakob B. Madsen, .
"The Anatomy of Growth in the OECD since 1870: the Transformation from the Post-Malthusian Growth Regime to the Modern Growth Epoch ,"
Monash Economics Working Papers
2009-14, Monash University, Department of Economics.
[Downloadable!]
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