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Durable Goods and ICT: The Drivers of Euro Area Productivity growth?

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  • Jalava, Jukka
  • Kavonius, Ilja Kristian

Abstract

The purpose of this paper is to estimate the effect of durable goods and ICT on Euro Area economic growth and productivity change; when expenditure on consumer durables is recorded as capital investment. The capitalization of consumer durables impacts both the levels and growth rates of the capital stock, productivity and GDP. Our growth accounting computations demonstrated that the capital services of durables contributed one-tenth of economic growth and one-eight of labour productivity growth in 1995-2004. ICTŽs impacts were larger, i.e., one-fifth of GVA growth and one-sixth of labour productivity growth.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1132.

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Length: 18 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:rif:dpaper:1132

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Related research

Keywords: durable good; asset; productivity; ICT; growth accounting; capital services; household production;

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