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EQUIPMENT AND STRUCTURES CAPITAL: ACCOUNTING FOR INCOME DIFFERENCES
Author(s) -
MUTREJA PIYUSHA
Publication year - 2014
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12062
Subject(s) - overtime , economics , capital (architecture) , physical capital , cost of capital , fixed capital , return on capital employed , monetary economics , capital equipment , capital formation , return on capital , financial capital , capital intensity , capital consumption allowance , capital adequacy ratio , labour economics , microeconomics , market economy , industrial organization , human capital , profit (economics) , archaeology , history
In this article, I present comparable measures of equipment capital and structures capital stocks for 119 countries. Cross‐country variation in equipment capital‐output ratio is over twice the variation in structures capital and aggregate physical capital. The dispersion in equipment capital has also increased overtime. Using development accounting that incorporates equipment and structures capital, I offer evidence relevant to the debate on the importance of productivity versus factors in accounting for income differences. The new measures of heterogeneous capital reduce the burden on total factor productivity by up to 5%. (JEL O11, O47, E22 )