Scoppa, Vincenzo (2007): Quality of Human and Physical Capital and Technological Gaps across Italian Regions.
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This paper evaluates the relative contribution of factor accumulation and technology in explaining output per worker differences across Italian regions in the period 2000-2004. The contributions of physical and human capital are separately estimated through the variance decomposition of output per worker. Whereas from a basic analysis of development accounting with crude data TFP emerges as a fundamental determinant of output per worker, when more accurate data are used in the estimations of human and physical capital, results change radically, showing a higher importance of factor accumulation with respect to previous standard estimations. Several measures of quality of human and physical capital are introduced: a) individuals’ cognitive skills as measured in international test scores; b) region specific rates of return on human capital; c) public investments and public-subsidized investments are weighted differently from private investment in the determination of physical capital stock. We show that better measurement of factor inputs allows a reduction in the solowian “measure of our ignorance”.
|Item Type:||MPRA Paper|
|Original Title:||Quality of Human and Physical Capital and Technological Gaps across Italian Regions|
|Keywords:||Growth; Technological Gaps; Human Capital; Physical Capital; Development Accounting; Quality of inputs|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E23 - Production
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical
|Depositing User:||VINCENZO SCOPPA|
|Date Deposited:||16. Jun 2009 00:34|
|Last Modified:||12. Feb 2013 14:26|
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