A BEJM Contributions article.

Abstract

The technology growth trends that underlie recent productivity patterns are investigated in a framework that incorporates investment-specific technological progress. Structural-break tests and regime-shifting models reveal the presence of a downward shift in total factor productivity growth in the late 1960s and an upward shift in investment-specific technology growth in the mid-1980s. In both cases, these breaks precede the generally recognized dates of labor productivity growth shifts. Simulations of technology growth shocks in a basic neoclassical model show that induced patterns of capital accumulation are generally consistent with the observed lags between technological advances and changes in productivity growth.

Submitted: March 2, 2005 · Accepted: November 11, 2005 · Published: December 29, 2005

Originally published in Contributions to Macroeconomics.

Recommended Citation

Pakko, Michael R. (2005) "Changing Technology Trends, Transition Dynamics, and Growth Accounting," Contributions to Macroeconomics: Vol. 5 : Iss. 1, Article 12.
Available at: http://www.bepress.com/bejm/contributions/vol5/iss1/art12