The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy

Detalhes bibliográficos
Autor(a) principal: Escribá-Pérez, Francisco-Javier
Data de Publicação: 2022
Outros Autores: Murgui-García, María-José, Ruiz-Tamarit, José-Ramón
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/26181
Resumo: The variables that contribute to explaining the major puzzles and paradoxes in macroeconomics and economic growth literature always appear related, directly or indirectly, to capital stock and depreciation. Depreciation defined in a narrow sense refers only to physical wear and tear, but in a broader sense, it also includes economic deterioration and obsolescence. In this study, we explore the link between these two depreciation concepts, the capital deepening and total factor productivity (TFP) growth. We propose a double growth accounting framework that allows us to establish a relationship between variables in statistical terms and variables in economic terms. Then, with Spanish data for 1964–2015, we first analyze the role played by capital intensity and TFP in explaining the evolution of labor productivity. The results are substantially different depending on whether we use statistical or economic measures of capital and depreciation. Second, we focus on the paradox of productivity, concluding that the apparent absence of a positive correlation between investment in information and communication technology and the TFP growth rate may be due to the delay effect associated with such investment combined with the statistical under-estimation of true economic depreciation.
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spelling The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economyCapitalDepreciationICTSlowdownTFPThe variables that contribute to explaining the major puzzles and paradoxes in macroeconomics and economic growth literature always appear related, directly or indirectly, to capital stock and depreciation. Depreciation defined in a narrow sense refers only to physical wear and tear, but in a broader sense, it also includes economic deterioration and obsolescence. In this study, we explore the link between these two depreciation concepts, the capital deepening and total factor productivity (TFP) growth. We propose a double growth accounting framework that allows us to establish a relationship between variables in statistical terms and variables in economic terms. Then, with Spanish data for 1964–2015, we first analyze the role played by capital intensity and TFP in explaining the evolution of labor productivity. The results are substantially different depending on whether we use statistical or economic measures of capital and depreciation. Second, we focus on the paradox of productivity, concluding that the apparent absence of a positive correlation between investment in information and communication technology and the TFP growth rate may be due to the delay effect associated with such investment combined with the statistical under-estimation of true economic depreciation.SpringerRepositório da Universidade de LisboaEscribá-Pérez, Francisco-JavierMurgui-García, María-JoséRuiz-Tamarit, José-Ramón2022-11-23T13:50:05Z20222022-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/26181engEscribá-Pérez, Francisco-Javier, María-José Murgui-García e José-Ramón Ruiz-Tamarit (2022). "The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy". Portuguese Economic Journal, 21(1):31-501617-982X10.1007/s10258-020-00187-zmetadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:55:40Zoai:www.repository.utl.pt:10400.5/26181Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:09:53.301907Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
title The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
spellingShingle The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
Escribá-Pérez, Francisco-Javier
Capital
Depreciation
ICT
Slowdown
TFP
title_short The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
title_full The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
title_fullStr The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
title_full_unstemmed The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
title_sort The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
author Escribá-Pérez, Francisco-Javier
author_facet Escribá-Pérez, Francisco-Javier
Murgui-García, María-José
Ruiz-Tamarit, José-Ramón
author_role author
author2 Murgui-García, María-José
Ruiz-Tamarit, José-Ramón
author2_role author
author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Escribá-Pérez, Francisco-Javier
Murgui-García, María-José
Ruiz-Tamarit, José-Ramón
dc.subject.por.fl_str_mv Capital
Depreciation
ICT
Slowdown
TFP
topic Capital
Depreciation
ICT
Slowdown
TFP
description The variables that contribute to explaining the major puzzles and paradoxes in macroeconomics and economic growth literature always appear related, directly or indirectly, to capital stock and depreciation. Depreciation defined in a narrow sense refers only to physical wear and tear, but in a broader sense, it also includes economic deterioration and obsolescence. In this study, we explore the link between these two depreciation concepts, the capital deepening and total factor productivity (TFP) growth. We propose a double growth accounting framework that allows us to establish a relationship between variables in statistical terms and variables in economic terms. Then, with Spanish data for 1964–2015, we first analyze the role played by capital intensity and TFP in explaining the evolution of labor productivity. The results are substantially different depending on whether we use statistical or economic measures of capital and depreciation. Second, we focus on the paradox of productivity, concluding that the apparent absence of a positive correlation between investment in information and communication technology and the TFP growth rate may be due to the delay effect associated with such investment combined with the statistical under-estimation of true economic depreciation.
publishDate 2022
dc.date.none.fl_str_mv 2022-11-23T13:50:05Z
2022
2022-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/26181
url http://hdl.handle.net/10400.5/26181
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Escribá-Pérez, Francisco-Javier, María-José Murgui-García e José-Ramón Ruiz-Tamarit (2022). "The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy". Portuguese Economic Journal, 21(1):31-50
1617-982X
10.1007/s10258-020-00187-z
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dc.publisher.none.fl_str_mv Springer
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