EQUIPMENT AND STRUCTURES CAPITAL: ACCOUNTING FOR INCOME DIFFERENCES |
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| Authors: | PIYUSHA MUTREJA |
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| Institution: | Mutreja: Assistant Professor, Department of Economics, Syracuse University, 110 Eggers Hall, Syracuse, NY 13244. Phone 315‐443‐8440, Fax 315‐443‐3717, E‐mail pmutreja@syr.edu |
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| 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 O11, O47, E22) |
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