TY  - JOUR
AU  - Greenwood,Jeremy
AU  - Jovanovic,Boyan
TI  - Accounting for Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6647
PY  - 1998
Y2  - July 1998
UR  - http://www.nber.org/papers/w6647
L1  - http://www.nber.org/papers/w6647.pdf
N1  - Author contact info:
Jeremy Greenwood
Department of Economics
University of Pennsylvania
3718 Locust Walk
McNeil Building, Rm 160
Philadelphia, PA 19104-6297
Tel: 215/898-1505
Fax: 215/746-2947
E-Mail: do-not-use@jeremygreenwood.net

Boyan Jovanovic
New York University
Department of Economics
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8953
Fax: 212/995-4186
E-Mail: Boyan.Jovanovic@nyu.edu
M1  - published as Jeremy Greenwood, Boyan Jovanovic. "Accounting for Growth," in Charles R. Hulten, Edwin R. Dean and Michael J. Harper, editors, "New Developments in Productivity Analysis" University of Chicago Press (2001)

AB  - A satisfactory account of the postwar growth experience of the United States should be able to come to terms with the following three facts: 1.  Since the early 1970's there has been a slump in the advance of productivity. 2.  The price of new equipment has fallen steadily over the postwar period. 3.  Since the mid-1970's the skill premium has risen. Variants of Solow's (1960) vintage-capital model can go a long way toward explaining these facts, as this paper shows.  In brief, the explanations are: 1.  Productivity slowed down because the implementation of information technologies was       both costly and slow. 2.  Technological advance in the capital goods sector has lead to a decline in equipment          prices. 3.  The skill premium rose because the new, more efficient capital is complementary with         skilled labor and/or because the use of skilled labor facilitates the adoption of new technologies.
ER  -