Investment and Technical Progress in the G7 Countries and Australia

John Pawley, Ernst Weber

Research output: Working paperDiscussion paper

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Abstract

The vintage model of capital accumulation predicts that technical progress depends on the installation of new capital equipment. In this paper it is found that investment raises labor productivity in the G7 countries and Australia. This finding implies that the decline in investment during the global financial crisis will have a long lasting detrimental effect on labor productivity and hence wages.
Original languageEnglish
PublisherUWA Business School
Publication statusPublished - 2011

Publication series

NameEconomics Discussion Papers
No.10
Volume11

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