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Knowledge capital and total factor productivity


  • Wladyslaw Welfe

    (University of £ódŸ, Institute of Econometrics and Statistics)


Development of “new economies” leading to economies mostly based on knowledge implies the construction of new long-term macroeconometric models. They should incorporate the impacts of new technologies being endogenized, as well as human capital. The paper discusses several issues related to the extension of the notion of production function. They cover first of all the measurement and explanation of total factor productivity (TFP), the role of domestic and foreign R&D expenditures, as well as educational expenditures. The discussion is extended to include proposals to construct new submodels explaining the sections of research and education and also the ICT industries.

Suggested Citation

  • Wladyslaw Welfe, 2007. "Knowledge capital and total factor productivity," Working Papers 2, Department of Applied Econometrics, Warsaw School of Economics.
  • Handle: RePEc:wse:wpaper:2

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    References listed on IDEAS

    1. Daniel Cohen & Marcelo Soto, 2007. "Growth and human capital: good data, good results," Journal of Economic Growth, Springer, vol. 12(1), pages 51-76, March.
    2. Bin Xu & Jianmao Wang, 1999. "Capital Goods Trade and R&D Spillovers in the OECD," Canadian Journal of Economics, Canadian Economics Association, vol. 32(5), pages 1258-1274, November.
    3. Alessandra Colecchia & Paul Schreyer, 2002. "ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 408-442, April.
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    Cited by:

    1. Welfe, Wladyslaw, 2011. "Long-term macroeconometric models: The case of Poland," Economic Modelling, Elsevier, vol. 28(1-2), pages 741-753, January.
    2. Welfe, Wladyslaw, 2011. "Long-term macroeconometric models," Economic Modelling, Elsevier, vol. 28(1), pages 741-753.

    More about this item


    knowledge economy; technical progress; production functions; total factor productivity; R&D expenditures; human capital;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General


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