Equipment and Structures Capital: Accounting for Income Differences

19 Pages Posted: 26 Feb 2014

See all articles by Piyusha Mutreja

Piyusha Mutreja

Syracuse University - Department of Economics

Date Written: April 2014

Abstract

In this article, I present comparable measures of equipment capital and structures capital stocks for 119 countries. Cross‐country variation in equipment capital‐output ratio is over twice the variation in structures capital and aggregate physical capital. The dispersion in equipment capital has also increased overtime. Using development accounting that incorporates equipment and structures capital, I offer evidence relevant to the debate on the importance of productivity versus factors in accounting for income differences. The new measures of heterogeneous capital reduce the burden on total factor productivity by up to 5%.

JEL Classification: O11, O47, E22

Suggested Citation

Mutreja, Piyusha, Equipment and Structures Capital: Accounting for Income Differences (April 2014). Economic Inquiry, Vol. 52, Issue 2, pp. 713-731, 2014, Available at SSRN: https://ssrn.com/abstract=2401407 or http://dx.doi.org/10.1111/ecin.12062

Piyusha Mutreja (Contact Author)

Syracuse University - Department of Economics ( email )

110 Eggers Hall
Department of Economics
Syracuse, NY 13244
United States

HOME PAGE: http://www.maxwell.syr.edu/econ/

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