0000000000075726
AUTHOR
M. J. Murgui-garcía
The devil is in the details : Capital stock estimation and aggregate productivity growth : an application to the Spanish economy
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…
Economic and statistical measurement of physical capital: From theory to practice
Abstract The standard measurements of capital and depreciation are statistical measures based on assumptions about the average service life of capital goods, which are accumulated according to the perpetual inventory method. The purpose of this paper is to obtain a true economic measure of capital stock according to the prescriptions of the neoclassical theory. In this way, we develop an alternative method based on the equations that solve the dynamic optimization problem of the firm, yielding an economic estimation based on indicators of profitability, such as the distributed profits and the Tobin's q ratio. Thus, this method enables us to endogenously calculate the variables' rate of depr…
Au revoir Paris! Spanish regions closer to the EU average and further away from the leaders
This paper confirms that Spanish regions in 2015 were closer to the EU average in labour productivity than in 2000, but further away from the richest regions such as Île de France. A dynamic shift-share analysis at a 10-industry level of disaggregation shows that the main driver of convergence with the EU average is catch-up in labour productivity within the same industry, while disparities with the top regions (especially Île de France) mainly involve differences in patterns of specialization (between-industry divergence) followed by technological divergence (within-industry effect). The industry mix of the regions reveals that a new pattern of specialization is taking shape in Europe, dri…