Search results for "Physical capital"
showing 10 items of 14 documents
A rational expectations model for simulation and policy evaluation of the Spanish economy
2010
This paper presents the model used for simulation purposes within the Spanish Ministry of Economic Affairs and Finance. REMS (a Rational Expectations Model for the Spanish economy) is a small open economy dynamic general equilibrium model in the vein of the New-Neoclassical-Keynesian synthesis models, with a strongly micro-founded system of equations. In the long run REMS behaves in accordance with the neoclassical growth model. In the short run, it incorporates nominal, real and financial frictions. Real frictions include adjustment costs in consumption (via habits in consumption and rule-of-thumb households) and investment into physical capital. Due to financial frictions, there is no per…
Economic and statistical measurement of physical capital: From theory to practice
2018
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…
Human capital in OECD countries: Technical change, efficiency and productivity
2003
The aim of this paper is to analyse the role of human capital in the productivity gains of the OECD countries in the period 1965-90, breaking down the productivity gains into technical change and gains in efficiency. For this purpose we use both a stochastic frontier approach and a non-parametric approach (DEA) and calculate Malmquist indices of productivity. The results obtained indicate the existence of both a level effect (a higher level of human capital raises labour productivity) and a rate effect (a higher level of human capital affects positively the rate of technical change) associated with human capital. The differences among countries in endowments of human capital have worked aga…
The path of R&D efficiency over time
2015
Abstract In this paper we investigate the pattern of R&D efficiency in terms of the number of product innovations achieved by firms over time. Using a panel dataset of Spanish manufacturing firms for the period 1990–2006, we follow the innovative performance of R&D active firms and observe that innovation rates change over firms' R&D histories. To explain these facts we propose a model that explicitly acknowledges the twofold composition of firms' R&D expenditures, comprising spending on both physical capital for R&D projects and payments to researchers. We regard this latter component of R&D as a source for dynamic returns to firms' R&D investments. Consequently firms' innovation outcomes …
The environmental Kuznets curve within European countries and sectors: greenhouse emission, production function and technology
2018
Based on the environmental Kuznets curve (EKC) hypothesis and the technological change and the environment literature, our original contribution consists in analysing within the decomposition model the direct and indirect influence of technological change as well as the energy mix on CO2 emissions. Focusing on the dirtiest sectors of 25 EU countries in the period 1997-2005 and considering the endogeneity issue, we estimate an adjusted EKC relationship comparing a single equation model (univariate model) with a simultaneous equations system (bivariate model). Following Lopez (J Environ Econ Manag 27:163-184, 1994), a second equation is introduced where per capita income is a positive functio…
Intellectual Capital and its Relationship with Universities
2015
Abstract The Intellectual Capital of a firm is the sum total of its Human Capital, Structural Capital and Relational Capital. These assets form a source of distinct competitive advantage and distinguish the performance of one firm from the other. Some organizations appear to continue relying on traditional resources for wealth creation but they should increase their attention towards a greater reliance on intellectual capital factors. This study attempts to investigate the role of intellectual capital in nowadays modern organizations and in particular, its relevance for education institutions such as universities.
Influencia del capital físico y humano en la supervivencia de nuevas empresas
2014
El propósito de este estudio es analizar la influencia del capital físico y humano en la supervivencia de nuevas empresas en diferentes contextos económicos. Para ello, se lleva a cabo un estudio utilizando un modelo logit que analiza las probabilidades de supervivencia de las empresas de nueva creación. Los resultados muestran que tanto el capital humano como el físico influyen en la supervivencia de las empresas en el corto y largo plazo, siendo especialmente importante el papel que desempeña el capital humano. Las implicaciones del estudio giran en torno a dos hallazgos sustanciales. El primero es que destaca el potencial de los gobiernos en la promoción de formas más eficientes de empre…
Labour Market Regulations and Capital Intensity
2018
What is the impact of labour market regulations as measured by the OECD indicator of employment protection legislation (EPL) on capital and skill composition? Precisely, this study investigates the effects of changes in EPL on changes in four types of capital and three components of labour skill. They include construction, non-ICT, ICT, and R&D capital components on the one hand, and low-, medium-, and highly-skilled labour on the other. Our analysis is grounded on a large country–industry panel dataset of fourteen OECD countries, and eighteen manufacturing and market service industries, from 1988 to 2007. It shows that strengthening EPL lowers ICT capital and, even more severely, R&…
Channels through Which Human Capital Inequality Influences Economic Growth
2011
This paper empirically investigates the theoretical predictions of some of the channels through which human capital inequality may discourage investment and growth. In a cross section of countries over the period 1960–2000, findings reveal that, all other things being equal, a greater degree of human capital inequality increases fertility rates and reduces life expectancy, which in turn hampers the accumulation rates of human capital. This effect is reinforced in the countries where individuals find it difficult to access credit. Extensive sensitivity analyses show that the results are robust across specifications and are not driven by atypical observations, endogenous regressors, or unobse…
Throwing the Spanner in the Works: The Mixed Blessing of FDI
2014
FDI is generally attributed to have positive impact for developing countries. In contrast, this paper shows that foreign capital inflows may cause an economy to be stuck in a middle-income trap. Introducing a simple capital market imperfection into a standard neoclassical (open-economy) model of growth, I show that FDI crowds out domestic investment when countries are still growing. If profitable investments are pursued by foreign capital owners, this does reduce chances for domestic entrepreneurs that they would have otherwise been able to take, by means of economy-wide savings. The long term losses due to the crowding-out effect occur despite the short-term gains that sudden capital inflo…