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Capital-goods imports, investment-specific technological change and U.S. growth

Author

Listed:
  • Anthony Landry

    (Federal Reserve Bank of Dallas)

  • Michele Cavallo

    (Federal Reserve Board)

Abstract

Investment-specific technological progress as reflected by the decline in the relative price of U.S. capital goods has substantially contributed to U.S. postwar growth. Imports of capital goods have represented an increasing share of U.S. equipment investment, and their price relative to U.S. capital goods has declined. We examine the quantitative contribution of the decline in the relative price of imports of capital goods to U.S. growth by assessing to what extent this decline can account for the decline in the relative price of capital goods in the U.S. We find that decline in the relative price of imports of capital goods has accounted for nearly 20 percent of U.S. growth during the last forty years.

Suggested Citation

  • Anthony Landry & Michele Cavallo, 2009. "Capital-goods imports, investment-specific technological change and U.S. growth," 2009 Meeting Papers 1166, Society for Economic Dynamics.
    • Handle: RePEc:red:sed009:1166
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    References listed on IDEAS

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    1. Whelan, Karl, 2002. "A Guide to U.S. Chain Aggregated NIPA Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(2), pages 217-233, June.
    2. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-362, June.
    3. Gomme, Paul & Rupert, Peter, 2007. "Theory, measurement and calibration of macroeconomic models," Journal of Monetary Economics, Elsevier, vol. 54(2), pages 460-497, March.
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    Cited by:

    1. Moralles, Herick Fernando & do Nascimento Rebelatto, Daisy Aparecida, 2016. "The effects and time lags of R&D spillovers in Brazil," Technology in Society, Elsevier, vol. 47(C), pages 148-155.

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