What is it about?
The paper explores the relative importance of physical capital accumulation (machinery, infrastructure, etc.) and productivity for economic growth in a sample of 90 countries over 48 years. We innovate by accounting not only for the quantity of physical capital but also for its quality, which we approximate with age. The paper also considers the quality of labor, which is human capital.
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Why is it important?
Our findings show that the quantity of physical capital is the main driver of growth even after accounting for the qualitative effects of capital and labor.
Perspectives
Writing this article was a challenge but also a great pleasure as it has co-authors whose work I respect a lot.
Giampaolo Garzarelli
Universita degli Studi di Roma La Sapienza
Read the Original
This page is a summary of: Output Growth Decomposition in the Presence of Input Quality Effects: A Stochastic Frontier Approach, German Economic Review, December 2017, Wiley,
DOI: 10.1111/geer.12147.
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