Energy, Obsolescence, and the Productivity Slowdown

Hulten, Charles R.; Robertson, James W.; Wykoff, Frank C.

doi:10.3386/w2404

Cited by 25 publications

(22 citation statements)

References 6 publications

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“…do not need to bother with the suggested adjustments for the longevity of the capital stocks in the economy. This corroborates the evidence presented by Hulten and Wykoff (1989). However, as these variables and parameters varied significantly from one year to the other, in all probability the useful lives varied significantly as well.…”

Section: Summary Of Findings and Conclusionsupporting

confidence: 90%

“…1 On the side of econometric applications here is how Hulten et al (1989) expressed the usefulness of the proportionality hypothesis: " We have found that a major event like energy crises, … did not in fact result in a systematic change in age-price profiles. This lends confidence to procedures that assume stationarity in order to achieve a major degree of simplification (and because of nonstationarity is so difficult to deal with empirically).…”

Section: Endnotesmentioning

confidence: 99%

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Aggregation of Producer Durables with Exogenous Technical Change and Endogenous Useful Lives

Bitros

2008

SSRN Journal

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The received theory of aggregation has been erected on certain fundamental hypotheses. One of them is that producer durables deteriorate exponentially, which implies that their replacement is proportional to the corresponding capital stocks. However the proportionality hypothesis conflicts with most of the available theoretical and empirical evidence. So an effort to relax it is long overdue. To this end the present paper investigates the conditions for consistent aggregation in a two-sector vintage capital model with exogenous technological change and endogenous useful lives. In the model aggregation is achieved by adaptation of the procedure first suggested by Haavelmo (1960). From the simulations of the solution with data from the United States in the post-war period it is found that the conventional approach to aggregation may be responsible for significant biases in the measurement of the economy-wide capital stock. JEL Classification: E220

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Section: Summary Of Findings and Conclusionsupporting

confidence: 90%

Section: Endnotesmentioning

confidence: 99%

Aggregation of Producer Durables with Exogenous Technical Change and Endogenous Useful Lives

Bitros

2008

SSRN Journal

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“…88 Of course, geometric depreciation has the disadvantage that it will never exhaust the full value of the asset. 89 Finally, a good alternative to the geometric depreciation model is the linear efficiency decline model.…”

Section: Resultsmentioning

confidence: 99%

Measuring Capital

Diewert¹

2003

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The paper revisits Harper, Berndt and Wood (1989) We consider 3 alternative assumptions about the interest rate and the treatment of capital gains so that we evaluate 15 models in all and compare their differences. Following Hill (2000), we also consider the differences between cross section and time series depreciation and anticipated time series depreciation (which adds anticipated obsolescence of the asset to normal cross section depreciation of the asset). Finally, we follow the suggestion made by Diewert and Lawrence (2000) that a superlative index number formula be used to aggregate up vintages of capital rather than the usual assumption of linear aggregation, which implicitly assumes that the capital services yielded by each vintage of a homogeneous type of capital are perfectly substitutable.

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“…12 Im Rahmen dieser Arbeit wird wie erwähnt stets unterstellt, dass Ölpreisschocks mit den Veränderungen der Preise anderer Energieträger hoch korreliert sind. 13 Kim, Loungani (1992: 182-186 (Rotemberg, Woodford 1996: 555-572 (Rotemberg, Woodford 1996: 557-558 (Hulten et al 1989;Bohi 1991: 157-158).…”

Section: Grundsätzliche Theoretische üBerlegungenunclassified

Reale Konjunkturzyklen, Effizienzlöhne und die Rolle von Ölpreisschocks. Eine theoretische und empirische Analyse für Deutschland.

Zimmermann¹

2007

Schriften Des Rheinisch-Westfälischen Instituts Für Wirtschaftsforschung

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Energy, Obsolescence, and the Productivity Slowdown

Abstract: for their comments and help. The research reported here is part of the NBERs research program in Productivity. Any opinions expressed are those of the authors and not those of the National Bureau of Economic Research.

Cited by 25 publications

References 6 publications

Aggregation of Producer Durables with Exogenous Technical Change and Endogenous Useful Lives

Aggregation of Producer Durables with Exogenous Technical Change and Endogenous Useful Lives

Measuring Capital

Reale Konjunkturzyklen, Effizienzlöhne und die Rolle von Ölpreisschocks. Eine theoretische und empirische Analyse für Deutschland.

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