The Elasticity of Aggregate Output with Respect to Capital and Labor

• 成果类型: Article
• 署名作者: Vollrath, Dietrich
• 署名单位: University of Houston System; University of Houston
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20220215
• 发表日期: 2024
• 页码: 470-504
• 关键词: UNITED-STATES; decline; INVESTMENT; GROWTH; price; cost; rise

摘要

It is often assumed that the elasticity of GDP with respect to capital is one-third, but this assumes zero markups and an aggregate production function. I estimate the elasticity allowing markups to vary by industry and with a rich input-output structure. Assumptions about capital costs provide bounds on elasticity. In the United States from 1948-1995, the capital elasticity ranged from 0. 19-0.32 and shifted to 0.24-0.37 by 1996-2018. Excluding housing or decapitalizing intellectual property lowers bounds to as low as 0. 11-0.26. Based on these elasticities, common estimates of total factor productivity growth represent a lower bound. ( JEL E13, E22, E23, E25, N12)