By conducting wedge-growth accounting, we assess the contribution of the economic forces (expressed as wedges in the equilibrium conditions of the neoclassical growth model) driving Spanish economic growth from 1850 to 2019. We find that declining investment and capital-efficiency wedges slowed...

We construct a vintage capital model à la Whelan (2002) with both exogenous embodied and disembodied technical progress, and variable utilization of each vintage. The lifetime of capital goods is endogenous and it relies on the associated maintenance costs. We study the properties of the...

We develope a growth accounting method using the whole neoclassical growth model. We obtain three primary findings from our analysis of the U.S. economy during 1954-2017. First, the efficiency wedges in the entire period accurately account for the evolution of U.S. productivity and labor share....

We conduct Business Cycle Accounting analyses for both the Euro Area and the United States. If the observed changes in the factor income shares reflect the frictionless competitive adjustment of productive factors, then we find that the capital-efficiency wedge was the main force driving the...

Our Business Cycle Accounting exercise reveals that both capital and investment efficiency declines played a prominent role in accounting for the output downturn during the U.S. Great Recession. The evidence indicates that an increase in firms’ investment costs may have played a substantial...

Our Business Cycle Accounting exercise reveals that both capital and investment efficiency declines played a prominent role in accounting for the output downturn during the U.S. Great Recession. The evidence indicates that an increase in firms’ investment costs may have played a substantial...