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MEASURING AND DECOMPOSING CAPITAL INPUT COST
Author(s) -
BALK BERT M.
Publication year - 2011
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/j.1475-4991.2010.00435.x
Subject(s) - economics , productivity , capital (architecture) , decomposition , econometrics , total factor productivity , technical change , macroeconomics , classical economics , microeconomics , ecology , archaeology , biology , history
The measurement of total factor productivity change (or difference) vis‐à‐vis labor productivity change crucially depends on the measurement and decomposition of capital input cost. This paper discusses the basics of its measurement and shows that one can dispense with the usual neoclassical assumptions. By virtue of its structural features, the measurement model is applicable to individual establishments and aggregates such as industries, sectors, or economies.