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Neutral, Investment-Specific Technical Progress and theProductivity Slowdown

Published online by Cambridge University Press:  17 August 2016

Fernando del Rio Iglesias
Fernando del Rio Iglesias*
Affiliation:
Universidad de Santiago de Compostela
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Summary

In this article I show that a permanent possitive shock on the rate ofinvestment-specific technical progress might cause, at least in the shortrun, a fall of the growth rate of both output per capita and total factorproductivity, as measured by the Solow residual. Several simulations areperformed which show that the extent of the Productivity Slowdowndrastically depends on the elasticity of the marginal cost of producing aunit of capital good with respect to the rate of investment-specifictechnical progress.

Résumé

Résumé

Dans cet article, je montre qu’un choc positif permanent sur le taux deprogrès technique spécifique à l’investissement peut provoquer, au moins àcourt terme, une chute du taux de croissance à la fois du produit par têteet de la productivité totale des facteurs, telle qu’elle est mesurée par lerésiduel de Solow. Nous réalisons une série de simulations qui montre quel’amplitude du Ralentissement de la Productivité dépend énormément del’élasticité du coût marginal de production d’une unité de bien capitalrelativement au taux de progrès technique spécifique à l’investissement.

Keywords

Neutral and Investment-Specific Technical ProgressTotal Factor ProductivityProductivity SlowdownO30O40O30O40

Information

Type
I. Macroeconomics and National Accounting
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 68 , Special Issue 1-2: The New Economy: Implications and Viability , 2002 , pp. 37 - 54
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002 

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Footnotes

*

I am indebted to Antonio Rodriguez-Sampaio and Mikel Pérez-Nievas for their help.

References

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