Quality of Human and Physical Capital and Technological Gaps across Italian Regions
Abstract
This paper evaluates the relative contribution of factor accumulation and technology in explaining output per worker differences across Italian regions in the period 2000-2004. The contributions of physical and human capital are separately estimated through the variance decomposition of output per worker. Whereas from a basic analysis of development accounting with crude data TFP emerges as a fundamental determinant of output per worker, when more accurate data are used in the estimations of human and physical capital, results change radically, showing a higher importance of factor accumulation with respect to previous standard estimations. Several measures of quality of human and physical capital are introduced: a) individuals’ cognitive skills as measured in international test scores; b) region specific rates of return on human capital; c) public investments and public-subsidized investments are weighted differently from private investment in the determination of physical capital stock. We show that better measurement of factor inputs allows a reduction in the solowian “measure of our ignorance”.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15740.Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:pra:mprapa:15740
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Related research
Keywords: Growth; Technological Gaps; Human Capital; Physical Capital; Development Accounting; Quality of inputs;Other versions of this item:
- Vincenzo Scoppa, 2007. "Quality of Human and Physical Capital and Technological Gaps across Italian Regions," Regional Studies, Taylor and Francis Journals, vol. 41(5), pages 585-599.
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Aiello, Francesco & Scoppa, Vincenzo, 2008. "Convergence and Regional Productivity Divide in Italy: Evidence from Panel Data," MPRA Paper 17343, University Library of Munich, Germany.
- Giuseppe Albanese & Giuseppe Albanese, 2010. "On the Production Function for Italy," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 118(4), pages 401-416.
- Francesco AIELLO & Valeria PUPO, 2009.
"L'impatto della politica regionale dell'Unione Europea. Uno studio sulle regioni italiane,"
Rivista Italiana degli Economisti,
SIE - Societa' Italiana degli Economisti (I), vol. 14(3), pages 421-454, December.
- Pupo Valeria & Aiello Francesco, 2009. "L'impatto della politica regionale dell'Unione Europea. Uno studio sulle regioni italiane," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 421-454.
- Vincenzo Scoppa, 2009.
"Technological Catch-Up Or Neoclassical Convergence? Identifying The Channels Of Convergence For Italian Regions,"
Working Papers
200904, Università della Calabria, Dipartimento di Scienze Economiche, Statistiche e Finanziarie (Ex Dipartimento di Economia e Statistica).
- Scoppa, Vincenzo, 2009. "Technological Catch-up or Neoclassical Convergence? Identifying the Channels of Convergence for Italian Regions," MPRA Paper 13051, University Library of Munich, Germany.
- Aiello, Francesco & Pupo, Valeria, 2009.
"Capacità di gestione, efficienza istituzionale e impatto dei Fondi Strutturali in Italia
[The Impact of Structural Funds in Italy]," MPRA Paper 14429, University Library of Munich, Germany. - Francesco Aiello & Valeria Pupo, 2009. "L’Impatto Dei Fondi Strutturali In Italia," Working Papers 200901, Università della Calabria, Dipartimento di Scienze Economiche, Statistiche e Finanziarie (Ex Dipartimento di Economia e Statistica).
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