NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Transition Dynamics in Vintage Capital Models: Explaining the Postwar Catch-Up of Germany and Japan

Simon Gilchrist, John C. Williams

NBER Working Paper No. 10732
Issued in September 2004
NBER Program(s):EFG, ME

We consider a neoclassical interpretation of Germany and Japan's rapid postwar growth that relies on a catch-up mechanism through capital accumulation where technology is embodied in new capital goods. Using a putty-clay model of production and investment, we are able to capture many of the key empirical properties of Germany and Japan's postwar transitions, including persistently high but declining rates of labor and total-factor productivity growth, a U-shaped response of the capital-output ratio, rising rates of investment and employment, and moderate rates of return to capital.

download in pdf format
   (295 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10732

Users who downloaded this paper also downloaded* these:
King and Rebelo w3185 Transitional Dynamics and Economic Growth in the Neoclassical Model
Rodrik w2654 Closing the Technology Gap: Does Trade Liberalization Really Help?
Mankiw, Romer, and Weil w3541 A Contribution to the Empirics of Economic Growth
Comin and Hobijn w16378 Technology Diffusion and Postwar Growth
Romer w15755 Which Parts of Globalization Matter for Catch-up Growth?
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us