Abstract

http://ssrn.com/abstract=226830
 
 

References (56)



 
 

Citations (58)



 


 



Equipment Investment and Economic Growth


J. Bradford DeLong


University of California, Berkeley; Federal Reserve Bank of San Francisco; National Bureau of Economic Research (NBER)

Lawrence H. Summers


Harvard University; National Bureau of Economic Research (NBER)

November 1990

NBER Working Paper No. w3515

Abstract:     
Using data from the United Nations Comparison Project and the Penn World Table, we find that machinery and equipment investment has a strong association with growth: over l9&)?l95 each percent of GDP invested in equipment is associated with an increase in GDP growth of 1/3 a percentage point per year. This is a much stronger association than found between growth and any of the other components of investment. A variety of considerations suggest that this association is causal, that higher equipment investment drives faster growth, and that the social return to equipment investment in well functioning market economies is on the order of 30 percent per year.

Number of Pages in PDF File: 71

working papers series


Download This Paper

Date posted: April 27, 2000  

Suggested Citation

DeLong, J. Bradford and Summers, Lawrence H., Equipment Investment and Economic Growth (November 1990). NBER Working Paper No. w3515. Available at SSRN: http://ssrn.com/abstract=226830

Contact Information

James Bradford DeLong (Contact Author)
University of California, Berkeley ( email )
Department of Economics
#3880
Berkeley, CA 94720-3880
United States
(510) 643-4027 (Phone)
(510) 642-6615 (Fax)
Federal Reserve Bank of San Francisco
101 Market Street
San Francisco, CA 94105
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Lawrence H. Summers
Harvard University ( email )
1875 Cambridge Street
Cambridge, MA 02138
United States
617-495-1502 (Phone)
617-495-8550 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,443
Downloads: 51
Download Rank: 221,616
References:  56
Citations:  58

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.297 seconds