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Comment on "Estimating Capital Input for Measuring Business Sector Multifactor Productivity Growth in Canada"

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  • Paul Schreyer

Abstract

This article shows that the large difference of 0.8 per cent percentage points per year between top-down estimates of capital input growth obtained by Diewert and Yu and the bottom-up estimates produced by Statistics Canada for the Canadian business sector over the 1961-2011 period can be interpreted as an reallocation effect due either to inefficiencies in production and or a measurement issue. It is also noted that although user costs of capital are officially recognized in the System of National Accounts, there is no single recommendation on the details of implementation and that moving towards such a recommendation is an objective worth pursuing.

Suggested Citation

  • Paul Schreyer, 2012. "Comment on "Estimating Capital Input for Measuring Business Sector Multifactor Productivity Growth in Canada"," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 73-75, Fall.
    • Handle: RePEc:sls:ipmsls:v:24:y:2012:6
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    File URL: http://www.csls.ca/ipm/24/IPM-24-Schreyer.pdf
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    References listed on IDEAS

    as
    1. Dale W. Jorgenson, 1966. "The Embodiment Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 74(1), pages 1-1.
    2. W. Erwin Diewert & Emily Yu, 2012. "New Estimates of Real Income and Multifactor Productivity Growth for the Canadian Business Sector, 1961-2011," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 27-48, Fall.
    3. W. Erwin Diewert, 2012. "Rejoinder to Gu on "Estimating Capital Input for Measuring Business Sector Multifactor Productivity Growth in Canada"," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 63-72, Fall.
    4. Wulong Gu, 2012. "Estimating Capital Input for Measuring Business Sector Multifactor Productivity Growth in Canada: Response to Diewert and Yu," International Productivity Monitor, Centre for the Study of Living Standards, vol. 24, pages 49-62, Fall.
    5. Dale W. Jorgenson & Mun S. Ho & Kevin J. Stiroh, 2005. "Productivity, Volume 3: Information Technology and the American Growth Resurgence," MIT Press Books, The MIT Press, edition 1, volume 3, number 0262101114, December.
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