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INVESTMENT AND TECHNICAL PROGRESS IN THE G7 COUNTRIES AND AUSTRALIA

The vintage model of capital accumulation predicts that technical progress depends on the installation of new capital equipment. In this paper it is found that investment raises labor productivity in the G7 countries and Australia. This finding implies that the decline in investment during the global financial crisis will have a long lasting detrimental effect on labor productivity and hence wages.
Year of publication:
2011
Authors: Pawley, John ; Weber, Ernst Juerg
Institutions: Department of Economics, Business School
Series:
Type of publication: Book / Working Paper
Language: English
Notes:
Number 11-10 88 pages
Source:
Persistent link: https://www.econbiz.de/10009148939
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