Abstract
The role that investment-specific technological change played in generating post-war U.S. growth is investigated here. The premise is that the introduction of new more efficient capital goods is an important source of productivity change and an attempt is made to disentangle its effects from the more traditional Hicks-neutral form of technological progress. The balanced growth path for the model is characterized and calibrated to U.S. National Income and Product Account (NIPA) data. The quantitative analysis suggests that investment-specific technological change accounts for the major part of growth.
| Original language | English |
|---|---|
| Pages (from-to) | 342-362 |
| Number of pages | 21 |
| Journal | American Economic Review |
| Volume | 87 |
| Issue number | 3 |
| State | Published - Jun 1997 |
