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The aggregate productivity slowdown: A system approach

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  • Serrano-Quintero, Rafael

Abstract

I revisit the productivity slowdown debate by estimating the capital-labor elasticity and the bias of technical change for the U.S. economy under four different models of technical change. One with constant growth rates, one with a structural break in the constant growth rates, one in which growth is linear, and one with flexible time-varying growth rates. I find evidence in support of non-constant growth rates of factor-augmenting technical change. Labor-augmenting technical change growth rates are decelerating, while capital-augmenting technical change is non negligible but vanishes quickly.

Suggested Citation

  • Serrano-Quintero, Rafael, 2023. "The aggregate productivity slowdown: A system approach," Economics Letters, Elsevier, vol. 223(C).
    • Handle: RePEc:eee:ecolet:v:223:y:2023:i:c:s0165176522004463
    DOI: 10.1016/j.econlet.2022.110972
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    References listed on IDEAS

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