Equipment Investment and Economic Growth in the 21st Century

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Abstract/Contents

Abstract: It is widely held that the Industrial Revolution introduced a century of explosive economic growth on the back of machinery and equipment. Testing whether this conventional wisdom held for more advanced economies, DeLong and Summers found large equipment returns to economic growth of up to 20-30%. In this paper, I extend their analysis and attempt to estimate the impact of equipment investment on economic growth in the late 20th and early 21st century. Using a strategy of OLS regression of productivity growth on equipment investment and other drivers of growth, I find that equipment still produces large returns but reach a more modest conclusion than DeLong and Summers.

Type of resource	text
Date created	May 3, 2019

Author	Lallas, Jackson
Advisor	Boskin, Michael J

Location	https://purl.stanford.edu/dx559dv4438

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License: This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

Preferred Citation: Lallas, Jackson. (2019). Equipment Investment and Economic Growth in the 21st Century. Stanford Digital Repository. Available at: https://purl.stanford.edu/dx559dv4438

Stanford University, Department of Economics, Honors Theses

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