Productivity and U.S. Economic Growth
North-Holland, Jan 1, 1987 - Capital investments - 567 pages
Between 1948 and 1979, economic activity in the United States increased almost twice as much as over the entire preceding course of American history. The traditional explanation of this remarkable development emphasizes productivity growth. In the most sophisticated study to date of the factors currently affecting economic growth, the authors of this book show that capital formation is far more important, with the growth of labor resources and productivity a distant second. Their conclusions rest on a far more detailed empirical base than any ever assembled in studies of economic growth. For example, the authors distinguish among 81,600 types of labor input ndash; broken down by age, sex, education, occupation, and industry of employment. Similarly, they disaggregate capital by industry, class of asset, and tax treatment. Their analysis of economic growth is from the ``bottom up'' rather than the ``top down'' approach used in earlier work. The new findings imply that efforts to revive U.S. economic growth must focus on increased supplies of capital and labor inputs. This is the key to more rapid growth and international competition. One of the most important features of the book is the way in which it successfully integrates the theory of producer behavior with the indexing and measurement of production growth. The authors present startling new findings showing that less than one-fourth of overall growth is attributable to advances in productivity.
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APPENDIX B Table assets Average annual rate biases of productivity capital and labor Capital input Capital capital services Census compensation worked 1948 components depreciation econometric employed Employment person compensation estimates Fabricated metal forty-five industries growth in capital growth of output growth rates Hicks neutrality Hourly Hours hours per Hourly Hours Year Price industrial sector input Weekly hours investment Jorgenson Kendrick labor compensation Labor input Weekly matrix model of production natural gas negative semidefinite noncorporate Outlay Quality Employment Outlay Quality Price parameters percent period perpetual inventory price and quantity Price Quantity Outlay Price Quantity Revenue product accounts production function production possibility frontier PRODUCTIVITY AND U.S. productivity Year Price property compensation Quality Employment person Quality Price Quantity Quantity Outlay Quality rate of productivity rates of growth rental prices returns to scale SECTORAL OUTPUT share elasticities subperiod taxicabs transportation U.S. ECONOMIC GROWTH value added value of output value shares value-added functions