Regulating rates of return do gravitate in US manufacturing!
AbstractIn this paper we test for the gravitation of regulating return rates, namely those return rates yielded by capital goods incorporating the best methods of production. We define them within a vintage capital model taking into consideration capacity utilization, capital depreciation, and wages of workers using past capital vintages. We consider two datasets regarding US manufacturing activities and we find that gravitation does take place. Our results are contrasted with those of the previous literature. Research and policy implications are discussed.
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Bibliographic InfoPaper provided by University of Verona, Department of Economics in its series Working Papers with number 19/2013.
Date of creation: Nov 2013
Date of revision:
capital mobility; gravitation; convergence; return rates on regulating capital; panel data.;
Find related papers by JEL classification:
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-11-16 (All new papers)
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