Quantifying Embodied Technological Change

50 Pages Posted: 14 May 2003

See all articles by Plutarchos Sakellaris

Plutarchos Sakellaris

Athens University of Economics and Business

Daniel J. Wilson

University of Maryland - Department of Economics

Date Written: July 2002

Abstract

We estimate the rate of embodied technological change directly from plant-level manufacturing data on current output and input choices along with histories on their vintages of equipment investment. Our estimates range between 8 and 17 percent for the typical U.S. manufacturing plant during the years 1972-1996. Any number in this range is substantially larger than is conventionally accepted with some important implications.

First, the role of investment-specific technological change as an engine of growth is even larger than previously estimated. Second, existing producer durable price indices do not adequately account for quality change. As a result, measured capital stock growth is biased. Third, if accurate, the Hulten and Wykoff (1981) economic depreciation rates may primarily reflect obsolescence.

Keywords: productivity growth, embodied technological change, equipment investment, plant, producer durable price index

JEL Classification: O3, D24, L60

Suggested Citation

Sakellaris, Plutarchos and Wilson, Daniel J., Quantifying Embodied Technological Change (July 2002). Available at SSRN: https://ssrn.com/abstract=357963 or http://dx.doi.org/10.2139/ssrn.357963

Plutarchos Sakellaris (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece
+302108203304 (Phone)
+3012108203383 (Fax)

Daniel J. Wilson

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-4636 (Phone)
301-405-3542 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
129
Abstract Views
1,411
Rank
397,421
PlumX Metrics