Multifactor Productivity in Canada: An Evaluation of Alternative Methods of Estimating Capital Services

Baldwin, John R.; Gu, Wulong

doi:10.2139/ssrn.1507796

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Multifactor Productivity in Canada: An Evaluation of Alternative Methods of Estimating Capital Services

The Canadian Productivity Review, Catalogue No. 15-206-XIE, No. 009, 2007

53 Pages Posted: 18 Nov 2009

See all articles by John R. Baldwin

John R. Baldwin

Statistics Canada - Microeconomic Analysis Division

Wulong Gu

Government of Canada - Micro-Economic Analysis Division

Date Written: April 4, 2007

Abstract

This paper examines the effects of alternative specifications of the user costs of capital on the estimated price and volume indices of capital services. It asks how sensitive the results are to the use of exogenous versus endogenous rates of return, to alternate ways of including capital gains, and to whether corrections are made for tax rates. The paper also examines the effect of the various user cost formulae on the measured multifactor productivity growth.

Keywords: multifactor productivity, capital services, rental price of capital

JEL Classification: D24, J24, O47, E22, H54

Suggested Citation: Suggested Citation

Baldwin, John R. and Gu, Wulong, Multifactor Productivity in Canada: An Evaluation of Alternative Methods of Estimating Capital Services (April 4, 2007). The Canadian Productivity Review, Catalogue No. 15-206-XIE, No. 009, 2007, Available at SSRN: https://ssrn.com/abstract=1507796 or http://dx.doi.org/10.2139/ssrn.1507796