Endogenous depreciation, mismeasurement of aggregate capital, and the productivity slowdown
نویسنده
چکیده
When we allow capital depreciation to be endogenous, the acceleration of investment-specific technological progress can distort the measurement of the aggregate capital stock. Our quantitative exercise shows that this effect may cause a substantial bias in the measurement of total factor productivity and can account for a large portion of the observed productivity slowdown since the 1970s. 2006 Elsevier Inc. All rights reserved. JEL classification: E22; O33; O47
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