Transition Dynamics in Vintage Capital Models: Explaining the Postwar Catch-Up of Germany and Japan / Simon Gilchrist, John C. Williams.

Format:

Book

Author/Creator:

Gilchrist, Simon.

Contributor:

National Bureau of Economic Research.

Williams, John C.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10732.

NBER working paper series no. w10732

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Transition Dynamics in Vintage Capital Models

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

We consider a neoclassical interpretation of Germany and Japan's rapid postwar growth that relies on a catch-up mechanism through capital accumulation where technology is embodied in new capital goods. Using a putty-clay model of production and investment, we are able to capture many of the key empirical properties of Germany and Japan's postwar transitions, including persistently high but declining rates of labor and total-factor productivity growth, a U-shaped response of the capital-output ratio, rising rates of investment and employment, and moderate rates of return to capital.

Notes:

Print version record

September 2004.