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Changing Technology Trends, Transition Dynamics, and Growth Accounting

  • Michael R. Pakko
Published/Copyright: December 29, 2005
Topics in Macroeconomics
From the journal Topics in Macroeconomics Volume 5 Issue 1

Abstract

The technology growth trends that underlie recent productivity patterns are investigated in a framework that incorporates investment-specific technological progress. Structural-break tests and regime-shifting models reveal the presence of a downward shift in total factor productivity growth in the late 1960s and an upward shift in investment-specific technology growth in the mid-1980s. In both cases, these breaks precede the generally recognized dates of labor productivity growth shifts. Simulations of technology growth shocks in a basic neoclassical model show that induced patterns of capital accumulation are generally consistent with the observed lags between technological advances and changes in productivity growth.

Keywords: Capital deepening; growth; productivity; transition dynamics
Published Online: 2005-12-29

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston

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  2. Comparing Wealth Effects: The Stock Market versus the Housing Market
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  12. Capital-Skill Complementarity and Rigid Relative Wages: Inference from the Business Cycle
  13. Indeterminacy and the Stability Puzzle in Non-Convex Economies
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  16. Exchange Rates and Fiscal Adjustments: Evidence from the OECD and Implications for the EMU
  17. Changing Technology Trends, Transition Dynamics, and Growth Accounting
  18. The 3-Equation New Keynesian Model --- A Graphical Exposition
  19. Topics Article
  20. Transparency and Reputation: The Publication of Central Bank Forecasts
  21. Technology Adoption in Follower Countries: With or Without Local R&D Activities?
  22. Non-Scale Models of R&D-based Growth: The Market Solution
  23. Parameter Instability, Model Uncertainty and the Choice of Monetary Policy
  24. Job Insecurity, Reallocation and Technological Innovation in a Self-Fulfilling Prophecy
  25. The Scope of Monetary Policy Actions Authorized Under the Federal Reserve Act
  26. Roads versus Schooling: Growth Effects of Government Choices
  27. Matching Up the Data on Education with Economic Growth Models
  28. An Active Public Investment Rule and the Downsizing Experience in the US: 1960-2000
  29. Exchange Rate Regimes and Financial Dollarization: Does Flexibility Reduce Currency Mismatches in Bank Intermediation?
  30. U.S. Regional Income and Technology: A Unit-Root and Cointegration Study
  31. Firm Entry with an Imperfect Labor Market
  32. Fiscal Policy and the Price Level
  33. Income Taxation, Productive Government Expenditure and Stochastic Growth: On Conditions for an Optimal Policy and the Role of the Risk Premium
  34. Income and Wealth Distributions Along the Business Cycle: Implications from the Neoclassical Growth Model
  35. Ramsey-Friedman Optimality with Banking Time
  36. Optimal Fiscal Policy with Rationing in the Labor Market
  37. The Monetary Policy Committee's Reaction Function: An Exercise in Estimation
  38. Policy Effects in the Post Boom U.S. Economy
  39. Human Capital and Growth: An Alternative Accounting
  40. Growing Old Together: Firm Survival and Employee Turnover
  41. Vertical Diversity, Communication Gap and Equilibrium Growth
  42. Should Developing Countries Strengthen their Intellectual Property Rights?
  43. Capital Accumulation in Private Information Economies
https://doi.org/10.2202/1534-6005.1304
Keywords for this article
Capital deepening; growth; productivity; transition dynamics

Articles in the same Issue

  1. Advances Article
  2. Comparing Wealth Effects: The Stock Market versus the Housing Market
  3. Optimal Time-Consistent Taxation with International Mobility Of Capital
  4. The Great Inflation of the Seventies: What Really Happened?
  5. Contributions Article
  6. The Effects of Industrialization on Education and Youth Labor in Indonesia
  7. A Closed Form Ramsey Saddle Path
  8. Indeterminacy, Stabilization Policy and Returns to Scale: A Re-Investigation
  9. Hiccups for HIPCs? Implications of Debt Relief for Fiscal Sustainability and Monetary Policy
  10. The Effects of Reducing Firing Costs in Spain: A Lost Opportunity?
  11. The Buffer-Stock Consumption Model with Endogenous Income Shifts
  12. Capital-Skill Complementarity and Rigid Relative Wages: Inference from the Business Cycle
  13. Indeterminacy and the Stability Puzzle in Non-Convex Economies
  14. The Underestimated Virtues of the Two-sector AK Model
  15. How Well Does the New Keynesian Sticky-Price Model Fit the Data?
  16. Exchange Rates and Fiscal Adjustments: Evidence from the OECD and Implications for the EMU
  17. Changing Technology Trends, Transition Dynamics, and Growth Accounting
  18. The 3-Equation New Keynesian Model --- A Graphical Exposition
  19. Topics Article
  20. Transparency and Reputation: The Publication of Central Bank Forecasts
  21. Technology Adoption in Follower Countries: With or Without Local R&D Activities?
  22. Non-Scale Models of R&D-based Growth: The Market Solution
  23. Parameter Instability, Model Uncertainty and the Choice of Monetary Policy
  24. Job Insecurity, Reallocation and Technological Innovation in a Self-Fulfilling Prophecy
  25. The Scope of Monetary Policy Actions Authorized Under the Federal Reserve Act
  26. Roads versus Schooling: Growth Effects of Government Choices
  27. Matching Up the Data on Education with Economic Growth Models
  28. An Active Public Investment Rule and the Downsizing Experience in the US: 1960-2000
  29. Exchange Rate Regimes and Financial Dollarization: Does Flexibility Reduce Currency Mismatches in Bank Intermediation?
  30. U.S. Regional Income and Technology: A Unit-Root and Cointegration Study
  31. Firm Entry with an Imperfect Labor Market
  32. Fiscal Policy and the Price Level
  33. Income Taxation, Productive Government Expenditure and Stochastic Growth: On Conditions for an Optimal Policy and the Role of the Risk Premium
  34. Income and Wealth Distributions Along the Business Cycle: Implications from the Neoclassical Growth Model
  35. Ramsey-Friedman Optimality with Banking Time
  36. Optimal Fiscal Policy with Rationing in the Labor Market
  37. The Monetary Policy Committee's Reaction Function: An Exercise in Estimation
  38. Policy Effects in the Post Boom U.S. Economy
  39. Human Capital and Growth: An Alternative Accounting
  40. Growing Old Together: Firm Survival and Employee Turnover
  41. Vertical Diversity, Communication Gap and Equilibrium Growth
  42. Should Developing Countries Strengthen their Intellectual Property Rights?
  43. Capital Accumulation in Private Information Economies
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