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


  • Jalava, Jukka
  • Kavonius, Ilja Kristian


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.

Suggested Citation

  • Jalava, Jukka & Kavonius, Ilja Kristian, 2008. "Durable Goods and ICT: The Drivers of Euro Area Productivity growth?," Discussion Papers 1132, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1132

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    Cited by:

    1. Jouko Kinnunen & Bjarne Lindström & Katarina Fellman, 2015. "Foreseeing supply and demand for competence and education until 2025 with a regional CGE model," ERSA conference papers ersa15p14, European Regional Science Association.

    More about this item


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

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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